Reliability standards and generation adequacy assessments for interconnected electricity systems

The paper “Reliability standards and generation adequacy assessments for interconnected electricity systems” will be presented at the 10th FSR Annual Conference (10-11 June, 2021).

ABSTRACT:

This paper studies the use of national reliability standards, defined as loss of load expectation (LOLE) targets, in generation adequacy assessments when electricity systems are interconnected. We show that the widely-used optimal reliability standard under autarky — equal to the ratio of the long-term marginal capacity cost and the value of lost load — can still lead to the welfare optimum in the presence of interconnections, but only under two conditions. First, installed generation capacities should be determined jointly, while considering the full power system. Second, LOLE calculations should internalize the generation adequacy benefits occurring in neighboring systems. Counter-intuitively, LOLE levels computed in adequacy assessment simulations should thus differ from their realized levels. We run a numerical application for a set of European countries and find that existing interconnections may lead to welfare gains of around one billion euro per year in generation adequacy benefits alone, by enabling a 17.6 GW decrease in installed capacity. In our case study, regional coordination is found to be more important than fully internalizing external adequacy benefits in adequacy simulations.

 

More on Electricity

Peer-to-peer electricity trading, Disintermediation and Platform liability
Peer-to-peer electricity trading, Disintermediation and Platform liability

Legal Challenges for consumer and prosumer protection The decentralisation of renewable energy production combined with the digitalisation of the electricity…

P2P Energy Trading: Legal Challenges for Data Management and Data Protection
P2P Energy Trading: Legal Challenges for Data Management and Data Protection

Peer-to-Peer Energy Trading, Digitalization, and Data In Peer-to-Peer (P2P) energy trading, the prosumers engage directly with each other using a…

Peer-to-Peer, Energy Communities, Legal Definitions and Access to Markets
Peer-to-Peer, Energy Communities, Legal Definitions and Access to Markets

Peer-to-Peer, Energy Communities, Legal Definitions and Access to Markets: legal challenges for new actors and new behaviour The threat of…

Join our community

To meet, discuss and learn in the channel that suits you best.

scroll

top