Environmental Engineering Reference
In-Depth Information
Table 7.9
Illustration of the value of a hydro generation contract at
€
15/MW h with imbalance cashed -
out at spill unit prices (SUPs) and top-up unit prices (TUP s)
Hour
Actual
(MW h)
Contracted
(MW h)
Contract
value (
€
)
S U P
(
€
/MW h)
TUP
(
€
/MW h)
Imbalance
cost (
€
)
1
1.0
1.9
28.50
11.00
23.00
− 20.70
2
1.3
1.9
28.50
11.00
21.00
− 12.60
3
1.5
1.9
28.50
9.00
20.00
− 8.00
4
2.0
1.9
28.50
8.00
23.00
0.80
5
2.0
1.9
28.50
10.00
28.00
1.00
6
2.0
1.9
28.50
12.00
30.00
1.20
7
2.5
1.9
28.50
12.00
35.00
7.20
8
2.5
1.9
28.50
13.00
33.00
7.80
9
2.5
1.9
28.50
13.00
35.00
7.80
10
2.6
1.9
28.50
13.00
37.00
9.10
11
2.8
1.9
28.50
12.00
33.00
10.80
12
2.7
1.9
28.50
11.00
30.00
8.80
13
2.6
1.9
28.50
10.00
28.00
7.00
14
2.5
1.9
28.50
9.00
27.00
5.40
15
2.3
1.9
28.50
9.00
25.00
3.60
16
2.0
1.9
28.50
8.00
24.00
0.80
17
1.5
1.9
28.50
8.00
23.00
−
9.20
18
1.4
1.9
28.50
7.00
24.00
−
12.00
19
1.5
1.9
28.50
7.00
23.00
−
9.20
20
1.6
1.9
28.50
8.00
24.00
− 7.20
21
1.5
1.9
28.50
9.00
23.00
− 9.20
22
1.3
1.9
28.50
9.00
21.00
− 12.60
23
1.2
1.9
28.50
8.00
20.00
− 14.00
24
1.4
1.9
28.50
9.00
20.00
− 10.00
46.2
45.6
684.00
− 53.40
revenue from the generator's contract, the generator makes a total of
630.60 for the day.
The total amount of energy for which the generator was contracted was 46.2 MW h. Thus the
net value of the generator's energy works out to be
€
13.65. Therefore, the penalty for the
generator's imprecise forecast of power output a day ahead is around 9% of the bilateral
contract price.
€
Trading Renewable Energy in an Electricity Market with Ex Post Pricing
If the same hydro generator were trading in a market with ex post pricing, for example a pool
system like the former England and Wales pool, it would not be exposed to unfavourable
imbalance prices. The major difference between such a mandatory pool system and a system
with bilateral trading and a balancing market is that the former spreads the cost of balancing
the entire system on all participants, whereas the latter targets the cost of balancing on those
participants who are out of balance compared with their contracted position. In general,
