Arbeitspapier
Intermittency or Uncertainty? Impacts of Renewable Energy in Electricity Markets
Renewable energy resources possess unique characteristics—intermittency and uncertainty— that pose challenges to electricity grid operations. We study these characteristics and find that uncertainty, represented by wind forecast error, has larger grid impacts than intermittency, or hourly generation changes. Uncertainty yields roughly double the price effects and roughly double the number of conventional generator start-ups, as compared to perfectly forecast wind. While this finding is important given the persistence of wind forecast error over the study period, reducing wind forecast error to the level of demand forecast error would lower costs by a modest half a million dollars per year.
- Language
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Englisch
- Bibliographic citation
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Series: CESifo Working Paper ; No. 9902
- Classification
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Wirtschaft
Energy: General
Alternative Energy Sources
Energy Forecasting
- Subject
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renewable energy
electricity prices and price dispersion
electricity grid management
- Event
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Geistige Schöpfung
- (who)
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Weber, Paige
Woerman, Matt
- Event
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Veröffentlichung
- (who)
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Center for Economic Studies and ifo Institute (CESifo)
- (where)
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Munich
- (when)
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2022
- Handle
- Last update
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10.03.2025, 11:43 AM CET
Data provider
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Object type
- Arbeitspapier
Associated
- Weber, Paige
- Woerman, Matt
- Center for Economic Studies and ifo Institute (CESifo)
Time of origin
- 2022