Evaluating Resource Adequacy Impacts on Energy Market Prices Across Wind and Solar Penetration Levels

Bethany Frew; Gordon Stephen; Devon Sigler; Jessica Lau; Wesley Jones; Aaron Bloom

doi:10.1016/j.tej.2019.106629

Evaluating Resource Adequacy Impacts on Energy Market Prices Across Wind and Solar Penetration Levels

Bethany Frew, Gordon Stephen, Devon Sigler, Jessica Lau, Wesley Jones, Aaron Bloom

Research output: Contribution to journal › Article › peer-review

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Abstract

This study evaluates market impacts of excess capacity across various wind and solar system penetrations. First, different fleet compositions are simulated in a production cost model to yield price outputs. Price statistics reveal a strong relationship between scarcity price events, resource adequacy, and the mean and standard deviation of prices. Next, a method is presented for adjusting resource adequacy to a chosen level, which links a capacity expansion model with a probabilistic resource adequacy model.

Original language	American English
Article number	106629
Number of pages	8
Journal	Electricity Journal
Volume	32
Issue number	8
DOIs	https://doi.org/10.1016/j.tej.2019.106629 https://doi.org/10.1016/j.tej.2019.106629
State	Published - Oct 2019

Bibliographical note

Publisher Copyright:
© 2019 Elsevier Inc.

NREL Publication Number

NREL/JA-6A20-71688

Keywords

Capacity expansion modeling
Electricity markets
Production cost modeling
Resource adequacy
variable renewable energy

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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title = "Evaluating Resource Adequacy Impacts on Energy Market Prices Across Wind and Solar Penetration Levels",

abstract = "This study evaluates market impacts of excess capacity across various wind and solar system penetrations. First, different fleet compositions are simulated in a production cost model to yield price outputs. Price statistics reveal a strong relationship between scarcity price events, resource adequacy, and the mean and standard deviation of prices. Next, a method is presented for adjusting resource adequacy to a chosen level, which links a capacity expansion model with a probabilistic resource adequacy model.",

keywords = "Capacity expansion modeling, Electricity markets, Production cost modeling, Resource adequacy, variable renewable energy",

author = "Bethany Frew and Gordon Stephen and Devon Sigler and Jessica Lau and Wesley Jones and Aaron Bloom",

note = "Publisher Copyright: {\textcopyright} 2019 Elsevier Inc.",

year = "2019",

month = oct,

doi = "10.1016/j.tej.2019.106629",

language = "American English",

volume = "32",

journal = "Electricity Journal",

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AU - Frew, Bethany

AU - Stephen, Gordon

AU - Sigler, Devon

AU - Lau, Jessica

AU - Jones, Wesley

AU - Bloom, Aaron

PY - 2019/10

Y1 - 2019/10

N2 - This study evaluates market impacts of excess capacity across various wind and solar system penetrations. First, different fleet compositions are simulated in a production cost model to yield price outputs. Price statistics reveal a strong relationship between scarcity price events, resource adequacy, and the mean and standard deviation of prices. Next, a method is presented for adjusting resource adequacy to a chosen level, which links a capacity expansion model with a probabilistic resource adequacy model.

AB - This study evaluates market impacts of excess capacity across various wind and solar system penetrations. First, different fleet compositions are simulated in a production cost model to yield price outputs. Price statistics reveal a strong relationship between scarcity price events, resource adequacy, and the mean and standard deviation of prices. Next, a method is presented for adjusting resource adequacy to a chosen level, which links a capacity expansion model with a probabilistic resource adequacy model.

KW - Capacity expansion modeling

KW - Electricity markets

KW - Production cost modeling

KW - Resource adequacy

KW - variable renewable energy

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U2 - 10.1016/j.tej.2019.106629

DO - 10.1016/j.tej.2019.106629

M3 - Article

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VL - 32

JO - Electricity Journal

JF - Electricity Journal

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M1 - 106629

ER -

Evaluating Resource Adequacy Impacts on Energy Market Prices Across Wind and Solar Penetration Levels

Abstract

Bibliographical note

NREL Publication Number

Keywords

UN SDGs

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