Hanspeter Höschle

Selecting Representative Days for Capturing the Implications of Integrating Intermittent Renewables in Generation Expansion Planning Problems

Due to computational restrictions, energy-system optimization models (ESOMs) and generation expansion planning models (GEPMs) frequently represent intraannual variations in demand and supply by using the data of a limited number of representative historical days. The vast majority of the current approaches to select a representative set of days relies on either simple heuristics or clustering algorithms and comparison of different approaches is restricted to different clustering algorithms. This paper contributes by: i) proposing criteria and metrics for evaluating representativeness, ii) providing a novel optimization-based approach to select a representative set of days, and iii) evaluating and comparing the developed approach to multiple approaches available from the literature. The developed optimization-based approach is shown to achieve more accurate results than the approaches available from the literature. As a consequence, by applying this approach to select a representative set of days, the accuracy of ESOMs/GEPMs can be improved without increasing the computational cost. The main disadvantage is that the approach is computationally costly and requires an implementation effort.

Influence of non-harmonized capacity mechanisms in an interconnected power system on generation adequacy

Insufficient incentives from the market lead to threats to generation adequacy. In order to create more steady investment signals, capacity mechanisms (CMs) are discussed in many European countries. CMs are discussed to complement energy-based market designs and ensure long-term generation adequacy. The introduction of a CM has an impact, both in the implementing but also in interconnected neighbouring countries. Hereby, the participation of non-domestic capacity at the CM through interconnection to enhance generation adequacy is often only limited or not at all possible. Current discussion is mostly based on qualitative studies. The possible joint impacts are discussed applying economic theory and transferred experience from world-wide implementations. This paper introduces an equilibrium model that allows for quantitative studies directly aiming on the possible interaction on interconnected countries with no, different or equal market designs including CMs. Changing market settings and increasing interconnection capacities can be researched to underpin the qualitative discussion. The cross-border effects are studied that arise if harmonization of CM or cross-border participation are neglected. A case study simulates two interconnected countries in a symmetrical set up to trace down the changes in the results to changes of market design and interconnection capacity. Results show that the change of market design in neighbouring countries has a strong impact on domestic generation adequacy. Increased interconnection capacity can have counter-intuitive effects on the overall generation adequacy.

Capacity remuneration mechanisms and the transition to low-carbon power systems

Market designs in their current form are facing challenges triggered by the increase of injection from renewable energy sources (RES). Insufficient remuneration of conventional generators in an energy-only market may lead to inadequate generation mixes to cover peak demands and balance intermittent RES injection. Various corrective actions to the market designs are discussed, amongst them capacity remuneration mechanisms (CRMs). In this paper, a model is applied to compare the outcome of an energy-only market, strategic reserves and a capacity market. The comparison is done based on total cost paid to the electricity generators, installed capacities and occuring load shedding. The total costs are split up into energy-based payments (e/MWh), subsidies for RES and capacity-based payments (e/MW). The results show that origin of remuneration change with the chosen market design and lead to different generation mixes. Total cost increase with a CRM. However, taking into account load shedding, the increase of cost must be weighted with indirect costs of energy non-served.

Networked business model for dynamic pricing in the electricity market

In a liberalized electricity market, the introduction of dynamic pricing for residential consumers has consequences on the whole network structure. This structure consists out of all market participants and their interactions. To assess the impact of dynamic pricing, an accessible representation of the network structure is implemented in a networked business model applying the e3value methodology. The focus of the model is on the interaction and value exchanges between market participants. Hereby, an economic analysis for all market participants is performed. Using the networked business model reveals the shifts of economic values triggered by dynamic pricing and the resulting demand response for all market participants throughout the network. An indication for the feasibility of dynamic pricing can be given.