Abstract
The EU energy policy aims to establish an EU-wide common power market through market couplings and cross-border grid expansions. The outcome of such international power markets may intersect with national renewable energy policies. To analyze this case, we introduce a market-based multi-region energy systems model to investigate the mutual impacts of energy transitions in a group of interconnected countries. The proposed model is a combination (hard-linking) of a multi-region power market model and hourly energy systems modeling of each constituent region. The case of Nordic power market with highly coupled areas, a high share of hydropower, and interlinked heating and power sectors (e.g., by combined heat and power plants (CHP) and district heating) is examined. According to the results, predicted targets for integration of variable renewable energy (VRE) in one country (Finland) can be counterbalanced by changes in the energy policy of interlinked countries (e.g. by nuclear power phase-out in Sweden). Comparing cross-border transmission lines versus local electricity storage suggests that domestic flexibility is 5 times more efficient in reducing wind curtailment in this case. The cost of such energy storage is, however, 90% higher than electricity sales from respective VRE integration. This calls for international, coordinated joint efforts in energy planning to guarantee an optimal utilization of energy resources and maintaining required flexibility for integration of renewable energy in such coupled regions at minimum cost.
Original language | English |
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Title of host publication | 2016 13th International Conference on the European Energy Market, EEM 2016 |
Volume | 2016-July |
Publisher | IEEE Computer Society Press |
Publication date | 25 Jul 2016 |
Article number | 7521265 |
ISBN (Electronic) | 9781509012978 |
DOIs | |
Publication status | Published - 25 Jul 2016 |
Event | 13th International Conference on the European Energy Market, EEM 2016 - Porto, Portugal Duration: 6 Jun 2016 → 9 Jun 2016 |
Conference
Conference | 13th International Conference on the European Energy Market, EEM 2016 |
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Country/Territory | Portugal |
City | Porto |
Period | 06/06/2016 → 09/06/2016 |
Keywords
- Energy system model
- European energy markets
- Flexibility
- Power market coupling
- Renewable energy policy