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

11 Scopus Citations

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.

NLR Publication Number

NREL/JA-6A20-71688

Keywords

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

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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",

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

language = "American English",

volume = "32",

journal = "Electricity Journal",

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T1 - Evaluating Resource Adequacy Impacts on Energy Market Prices Across Wind and Solar Penetration Levels

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

UR - https://www.scopus.com/pages/publications/85070333976

U2 - 10.1016/j.tej.2019.106629

DO - 10.1016/j.tej.2019.106629

M3 - Article

AN - SCOPUS:85070333976

SN - 1040-6190

VL - 32

JO - Electricity Journal

JF - Electricity Journal

IS - 8

M1 - 106629

ER -

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

Abstract

Bibliographical note

NLR Publication Number

Keywords

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