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Economic impact analysis of the demonstrations in task-forces TF1 and TF3

J. García-González , A. Contreras , E. Saiz , C. Fernandes , M. Vallés , E. Rivero , E. Lobato , A. Ramos , P. Frías , I. Egido , P. Sánchez , A. Altiparmakis , M. Litong-Palima , N. A. Cutululis , P. Sørensen , M. Stryg , J. Hansen , N. Detlefsen , J.C. Villumsen , J. Andersen , S. Wöllner , K.L. Falk , P. Ostos , J. Rivier , I. Azpiri , et al.

This deliverable D15.1 is one of the outcomes of Work Package WP15 entitled “Economic impacts of the demonstrations, barriers towards scaling up and solutions”. In particular, this deliverable presents the economic impact analysis of the demonstrations performed in taskforces TF1 and TF3. The main findings of the analysis carried out can be summarized as follows: Task force 1: ? TWENTIES has overcome a major technical barrier preventing better use of wind generation (WG). The capability of providing frequency and voltage control by wind farms makes it possible to reduce system operation costs and carbon emissions. ? The analysis of the 2020 scenario for Spain shows that the active power control by wind farms could reduce 1.1% of system operation costs thanks to 1) the substitution of expensive thermal downward reserve by wind generation reserve during off-peak hours, and 2) the need of lower up-reserve requirements during peak hours. This impact would increase under certain conditions: higher levels of WG, higher prediction errors, higher requirements of downward reserve, and reduced installed power of flexible generation (as pumped-storage units). ? The analysis performed about the impact in the Spanish system of the voltage control by wind farms shows that wind penetration will not be limited notably because of voltage reasons. Nevertheless, in buses that present a low x/r ratio or in buses with low short circuit power, the voltage control capability of wind farms would help to accommodate higher levels of WG. ? Virtual power plants (VPP) in the Danish system can decrease overall system costs. With the considered VPP scenario in 2030 consisting of 400 MW cold storage and 300,000 electrical vehicles (2,800 MW) in Denmark, the benefit for the whole European System was estimated to 27 M€/y cost savings in the day-ahead based on the performed simulations. …


Funding entity: Comisión Europea. FP7-ENERGY



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