09:00 - 10:30 Making electricity markets fit for wind
Integrating wind power into the electricity market
Room: Hall D
Wind power is variable and dependent on the weather, so fundamentally different from classic fuel-based power. Electricity markets wereoriginally designed with conventional central power stations in mind, but the developments in the last two decades have introduced ever larger amounts of renewable energy.
The session provides an overview of the different markets for wind power, and on the role wind power can play in those. The main angle of the session is money, but the underlying need to balance the grid at all times can be monetized in different ways. The session also shows how wind power can be a good grid citizen, and get access to different income than just to sell the power.
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Learning objectives
- Wind power in the different markets;
- Different markets for wind power;
- Cost, value and income opportunities of wind power.
Presenter
Co-authors:
Alex Coulton (1) F
(1) RES group, Kings Langley, United Kingdom
Presenter's biography
Biographies are supplied directly by presenters at WindEurope Summit 2016 and are published here uneditedAlex Coulton is the Senior Policy Analyst for RES Western Europe. He holds a MPhil in Engineering for Sustainable Development from Cambridge and a MEng in Civil Engineering from Southampton.
Prior to RES he was the Economist for RenewableUK on Economics and Market design. Today, his focus is on securing a stable policy framework for GB. He represents RES on numerous industry strategy committees and is leading RES’s work on System Integration Costs and Market Design.
His presentation will cover initial findings of a report by Imperial College, a joint commission with Innogy, Scottish Power and Statoil.
Abstract
System integration costs and the UK: the good, the bad and the ugly
Introduction
The UK has lead Europe in the transition towards competitive support mechanism with the first CfD auctions successfully concluded in 2015. Strong concerns have however arisen around the cost effectiveness of the decarbonisation agenda and prompted the desire to move towards technology neutral auctions for low-carbon generation as soon as possible. This has raised questions around the whole system costs of technologies and the need to create a level playing field. We therefore believe that the emerging thinking around whole system costs of renewables and the resulting policy response could have a strong influence on other European markets.
This presentation will seek to explore the on-going debate, emerging policy and possible implications for the industry.
Approach
n/a
Main body of abstract
RES is a strong proponent of decarbonisation at least-cost agenda and, in-line with the UK Governments ambitions, RES supports a rapid transition towards technology neutral auctions.
Guaranteeing decarbonisation at least cost requires an appropriate market structure to deliver the most cost effective generation. Delivering technology neutral auctions requires competition takes place on a level playing field.
In this context questions around the whole system costs of technologies needs addressing and appropriate policy and regulatory responses defined so RES is taking a leading role in this debate.
This presentation will seek to shed light on an ambiguous and often miss understood topic: the Whole System Cost of renewables, the policy response options and implications for the industry.
Conclusion
As penetration levels of variable renewables increases system adequacy must be maintained. Developing appropriate policy and regulatory responses to ensure that this can be done cost effectively is one of the most important challenges the industry faces in the coming years.
Learning objectives
The aim of this presentation is to help delegates understand the positive implications that unravelling this complex topic is likely to have on the onshore wind industry which could otherwise, if not understood correctly, be viewed as messy and threatening.
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