wind power in ireland: treatment of wind in the single electricity market
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Wind Power in Ireland: Treatment of wind in the Single Electricity Market. APEx Conference, Paris 16 th October 2007. Presentation Overview. Introduction: Wind Power in Ireland Single Electricity Market (SEM): Overview Treatment of Wind in SEM. Presentation Overview. - PowerPoint PPT PresentationTRANSCRIPT
Wind Power in Ireland:
Treatment of wind in the Single Electricity Market
APEx Conference, Paris
16th October 2007
Presentation Overview
Introduction: Wind Power in Ireland
Single Electricity Market (SEM): Overview
Treatment of Wind in SEM
Presentation Overview
Introduction: Wind Power in Ireland
Single Electricity Market (SEM): Overview
Treatment of Wind in SEM
Introduction: Wind Power in Ireland
Ireland Power System:– Approximately 6500 MW
generation installed (excluding wind)
– Peak demand: 5035 MW
– Minimum demand: 1814 MW
– 803 MW Wind Power installed at present
– Wind Grid Code
– Priority Dispatch
Wind Power in Ireland to end 2007
900MW
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Wind Power in Ireland: Future…
Government Targets for Renewable Energy:
– 15% of electricity from renewable resources by 2010
• approximately 1160 MW of wind required
– 33% of electricity from renewable resources by 2020
• in the region of 4600 MW of wind required
• Ireland well placed to meet these targets:
15%
33%
Connected 803 MWContracted 451 MWOffer Process 1344 MWIn Queue 2923 MWTotal: 5521 MW
Introduction: Wind Power in Northern Ireland
Northern Ireland Power System – Operated by SONI (Systems Operator for Northern Ireland)
– 2132 MW generation installed (excluding wind and interconnection)
– Peak demand: 1717 MW
– Minimum demand: 561 MW
– 120 MW wind installed and an additional 138 MW approved
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Presentation Overview
Introduction: Wind Power in Ireland
Single Electricity Market (SEM): Overview
Treatment of Wind in SEM
Single Electricity Market (SEM): Overview
• Single Electricity Market: Joint market for both Ireland and Northern Ireland
• Dual Currency
• Market Start: 1st November 2007
• Mandatory pool with single clearing price– All energy must be sold directly into and bought from the pool
– Separate physical energy trades are not permitted
– De minimis level of 10 MW
• Separate Capacity payment mechanism
• Specific rules for “special” participants
WholesaleMarket
Physical Contract
Customer CustomerCustomer
Suppliers buy @ SMP
Supplier Unit
Supplier Unit
Generator Unit
Generator Unit
Generator Unit
Generators bid in energy
Pool
TSODispatch
Contractsfor
Differences
Mandatory Pool
Presentation Overview
Introduction: Wind Power in Ireland
Single Electricity Market (SEM): Overview
Treatment of Wind in SEM
Wind in SEM: Classification
Wind Grid CodeCompliant?
Choice between being aPrice Maker or Price Taker
Price Maker Price Taker Price Taker
Variable
Yes
Autonomous
No
Wind in SEM: Energy Payments
• Price Takers
– If wind blowing and wind power unit produces energy, it will receive single clearing price, SMP (System Marginal Price) for all energy produced
• Price Makers
– Scheduled by the market software based on the prices the wind power unit offers into the market.
– Will receive SMP for scheduled energy
Wind in SEM: Constraint Payments
• Price Taker– If dispatched down by TSO, each Price Taker wind power unit
will still receive payment in full for what could have been produced
• Price Maker– Always receive full energy payment for market schedule
amount– If dispatched down: pay back avoided costs for difference– If dispatched up: receive costs incurred for difference
MarketQuantity Dispatch
Quantity
Pay back avoided costsDispatchQuantity
Receive additional costs incurred
Wind in SEM: Capacity Payments• Incentive to provide capacity adequacy through economic
signals
• Paid to all generators who provide capacity
• Based on a combination of• Forecasted value of when capacity most needed• Actual availability on the day
• Higher payments in times of small generation margins
• In current market in Ireland: no capacity payment for wind
• In SEM, all wind power units will receive a payment for available active power
Summary: Wind Power in Ireland
• Increasing wind power in Ireland
• Priority Dispatch
• Price taker wind receives SMP for energy produced
• Price maker wind receives SMP for market scheduled energy
• All wind power units will receive capacity payments
