André Ortner

Multi-market unit-commitment and capacity reserve prices in systems with a large share of hydro power: A case study

Whereas spot markets and their related products have been extensively analysed, the amount of literature focusing on the analysis of reserve markets and especially their interaction with other markets is rather scarce. This paper extends prior work on the economic equilibrium of spot and reserve markets with a special focus on markets that are characterised through a large share of hydro power. We theoretically discuss crucial factors determining the unit-commitment decision of generators by explicitly considering the interrelation of their decisions. Taking these effects into account we reflect on the economic equilibrium between spot and reserve markets. To test our hypotheses we developed a linear program with a detailed representation of the secondary control energy market design currently implemented in Germany/Austria. We use this model to derive integrated market outcomes of both, the spot and balancing market. The proposed approach is applied to the Austrian power market; A market which is characterized by a large share of run-of-river generators and pumped hydro storages. The results show that hydro power has a significant influence on the capacity reserve prices.

Assessment of RES technology market values and the merit-order effect – an econometric multi-country analysis:

This study presents an assessment of both the merit-order effect and the market values of electricity generated from variable renewable energy sources, namely wind and solar photovoltaics. The historical price development in several European countries – that cover 73% of the renewable energy source share in Europe’s regional electricity markets – has been taken into account. To gain insights into the impact of renewable electricity on prices, market values and the merit-order effect were calculated using a multivariate regression analysis and ex-post calculations. All the countries analyzed show a consistent, negative impact of renewable electricity on electricity spot market prices and a decreasing market value of renewable energy source, possibly attributable to increased shares. The coefficients are economically and statistically significant. This study provides insights into a large geographical spread of European electricity markets, enables a comparison between countries, and therefore has valuable implications for policy makers.

Machine learning analysis for a flexibility energy approach towards renewable energy integration with dynamic forecasting of electricity balancing power

One of the most important instruments to be able to provide the needed level of flexibility in the electricity system supporting renewable energy integration are balancing markets. We propose a dynamic approach of balancing procurement using machine learning algorithms. We apply a simulation for a Dynamic Day-Ahead Dimensioning Model to the Austrian delta control area. By using public data on renewables, generation and load we show that dynamic dimensioning and procurement of balancing power enables savings in comparison to static dimensioning and procurement with the same level of security.

The Potentials and the Benefits of Intensified RES Cooperation Between the European Union and Its Neighbours

This chapter provides a brief summary of key results and findings of the BETTER project, focussing on how to bring the European Union (EU) and its neighbouring regions—namely North Africa, Turkey and the Western Balkans—closer together through renewable electricity (RES-E) cooperation. The core objective of the BETTER project has been to address cooperation mechanism opportunities between the EU and its neighbouring countries, as defined in Article 9 of the EU Renewable Energy Directive 2009/28/EC (hereafter RES Directive). Article 9 refers to Joint Projects with Third Countries and allows EU Member States to partially fulfil their RES targets in a cost-effective manner with RES-E generated in neighbouring countries.

The integrated assessment of RES cooperation between the EU and its neighbours

Purpose The purpose of the paper is to provide estimation results for feasibility of renewable energy source (RES) deployment in Turkey, the Western Balkans and North Africa. From these results, the potential for cooperation in renewables production between the countries and the European Union (EU) is assessed and evaluated, in a mid- (2030) and long-term (up to 2040) perspective. Design/methodology/approach The authors focus on the quantitative assessments undertaken on the extent to which RES cooperation can create mutual benefits, identifying costs and benefits for both sides, but in particular with respect to RES target achievement (2020 and 2030) at EU level. The potentials for RES generation in Turkey, North Africa and the Western Balkans are calculated under different policy pathways, taking into account different levels of economic and non-economic barriers that could occur. Findings Overall, the authors found that increasing RES deployment in the three analysed regions and initiating or intensifying cooperation with EU28 Member States leads to mutual benefits. Concretely, these benefits become apparent in terms of the EU Member States importing renewable energy sources for electricity with a good resource quality and adding on to their targets for RES deployment. At the same time, substantial savings occur for the EU, in turn leading to income and investments in the cooperating regions. Originality/value The assessment underlying this paper is the first of its kind to the authors’ knowledge that opens up the geographical spread in comparison to merely assessing cooperation between Europe and the Middle East and North Africa. Furthermore, the multitude of policy parameters analysed provides detailed and robust insights concerning a broad variety of different possible scenarios.