Search Result

Srl

Item

ID: 109342

Efficiency of Ireland's Renewable Energy Feed-In Tariff (REFIT) / Doherty, Ronan; O'Malley, Mark

O'Malley, Mark	Journal Article
	0 Rating(s) & 0 Review(s)

Publication

2011.

Summary/Abstract

Ireland's Renewable Energy Feed-In Tariff (REFIT) for wind generation has some unusual features making it different from other REFIT schemes around the world. By utilising an annual floor price element the scheme presents an option value to the contract holder, which to date has gone unnoticed or unvalued in the market. By employing an option pricing framework, this paper has quantified for the first time in the public domain the expected costs and value of the Irish REFIT support scheme for wind generation. While the cost of the REFIT scheme to the electricity consumer appears to be lower than the cost of schemes in other countries, significant inefficiencies exist as a result of the structure of the scheme. The Irish REFIT scheme is contrasted with a single Fixed Price support scheme and the analysis suggests that the Fixed Price scheme can provide a similar or greater incentive to the wind sector at half the cost to the end electricity consumer, and may also prove more compatible with consumers desire to reduce inter-year electricity portfolio cost volatility.

Key Words

Feed - in Tariff ; Renewable Support Scheme ; Option Pricing

In Basket

Export

ID: 099345

Viability of balancing wind generation with large scale energy / Nyamdash, Batsaikhan; Denny, Eleanor; O'Malley, Mark

Nyamdash, Batsaikhan	Journal Article
	0 Rating(s) & 0 Review(s)

Publication

2010.

Summary/Abstract

This paper studies the impact of combining wind generation and dedicated large scale energy storage on the conventional thermal plant mix and the CO2 emissions of a power system. Different strategies are proposed here in order to explore the best operational strategy for the wind and storage system in terms of its effect on the net load. Furthermore, the economic viability of combining wind and large scale storage is studied. The empirical application, using data for the Irish power system, shows that combined wind and storage reduces the participation of mid-merit plants and increases the participation of base-load plants. Moreover, storage negates some of the CO2 emissions reduction of the wind generation. It was also found that the wind and storage output can significantly reduce the variability of the net load under certain operational strategies and the optimal strategy depends on the installed wind capacity. However, in the absence of any supporting mechanism none of the storage devices were economically viable when they were combined with the wind generation on the Irish power system.

Key Words

Profitability ; Wind and Energy Storage ; Plant Mix

In Basket

Export