A quantitative method for evaluation of variation management strategies for integration of variable renewable electricity

Other conference contribution, 2017

The ability of variation management strategies to increase the value of wind and solar power is evaluated by use of a regional electricity system investment model designed to account for variability. The marginal system value is applied as a quantitative measure for this evaluation. The study is carried out for two regions, one with good conditions for wind power (SE) and one with good conditions for solar power (ES). Batteries at various costs, demand-side management and hydropower (only in SE) are the variation management strategies assessed. It is found that hydropower has the largest impact on increasing the value of wind turbines at low to medium wind penetration levels. The effect of demand-side management on wind turbines in SE is smaller but even across all penetration levels. In the ES region, demand-side management does not increase the value of wind power but increase the value of solar PV for all solar penetration levels. An optimistic cost development for both batteries and solar PV is required for batteries to substantially increase the marginal system value and cost-effective penetration level of solar PV.