Wind variability and the impact on markets

FSR Energy Seminar Series with Professor R. Baldick (University of Texas at Austin)

Description: In this seminar we discuss the growth of wind in Texas and the challenges to electricity system operation under high levels of wind. Texas has, by far, the highest wind penetration of the three interconnections in the United States and the highest penetration of any balancing area, so that it represents a microcosm of high wind challenges. To understand some of the challenges, we describe a statistical modeling of wind power production. We utilize a so-called generalized dynamic factor model and investigate the characteristic Kolmogorov spectrum of wind power. This modeling allows to understand the manner in which wind power and wind power variability evolve with the increase in installed capacity. We observe that aggregation of large amounts of wind capacity across large areas of the United States will mitigate short-term variability, but generally will not completely ameliorate intermittency over longer time scales. We then describe the implications for the electricity system and for organized wholesale markets, including negative wholesale prices and commitment of thermal resources to meet net load.

Presenter: Prof. Ross Baldick (University of Texas at Austin)

The Seminar is organised by the Research Team of the Florence School of Regulation – Energy and open to all EUI members.