Changing the Day-Ahead Gate Closure to Wind Power Integration: A Simulation-Based Study

Currently, in most European electricity markets, power bids are based on forecasts performed 12 to 36 hours ahead. Actual wind power forecast systems still lead to large errors, which may strongly impact electricity market outcomes. Accordingly, this article analyzes the impact of the wind power for...

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Bibliographic Details
Published in:Energies (Basel) 2019, Vol.12 (14), p.2765
Main Authors: Algarvio, Hugo, Couto, António, Lopes, Fernando, Estanqueiro, Ana
Format: Article
Language:English
Subjects:
agent-based simulation
Alternative energy sources
Atmosphere
balancing market
Computer simulation
day-ahead market
Economic forecasting
Electricity
Energy industry
Energy shortages
Energy value
forecast uncertainty
gate closure
Impact analysis
Real time operation
Renewable resources
Reserve requirements
Simulation
the MATREM system
Wind power
wind power forecast
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Summary:Currently, in most European electricity markets, power bids are based on forecasts performed 12 to 36 hours ahead. Actual wind power forecast systems still lead to large errors, which may strongly impact electricity market outcomes. Accordingly, this article analyzes the impact of the wind power forecast uncertainty and the change of the day-ahead market gate closure on both the market-clearing prices and the outcomes of the balancing market. To this end, it presents a simulation-based study conducted with the help of an agent-based tool, called MATREM. The results support the following conclusion: a change in the gate closure to a time closer to real-time operation is beneficial to market participants and the energy system generally.
ISSN:1996-1073
1996-1073
DOI:10.3390/en12142765