Electricity market model with renewable energy sources

Abstract

The focus of this research is to explore the optimal solutions of electricity generation price by modelling of European electricity market (ENTSO-E) via PowerWorld simulator and to find optimal solutions for generating cost by using LINGO both on DC-OPF basis. Besides this research also concerned with the exploration of economic effects of large-scale wind power integration with the common European electricity market in the year 2020. The reference case study is a simplified ENTSO-E 30-nodes power system (Containing 20 UCTE countries, 4 Nordic countries, and 6 offshore wind farm clusters) interconnected through 36 overhead and 13 HVDC transmission lines with generation and load data based on ENTSO-E System Adequacy Forecast (SAF) study for 3rd Wednesday January 2020 at 11:00 A.M. The economic effects of large-scale wind power integration based on 2020 estimates and goals of 3E project (Greenpeace study) was analyzed through the definition of 4 different scenarios for the generation marginal cost of renewable energy sources (wind, solar and biomass) and 4 different scenarios for offshore wind power capacity levels in North Sea region while the results are shown in terms of total generation cost of the system, total generation mix of each country, power exchanges, power flows and probable congestions within transmission lines. It has been concluded that by large-scale of offshore wind power integration in North-sea region in 2020, the scenario with a uniform (fixed-tariff) policy for RES is the most optimal solution with highest generation mix of RES, lowest system generation costs and minimum fossil fuels generation mix. The results indicate that by increasing the offshore wind power capacity levels in North Sea region, the total generation cost of the system will be reduced significantly