Intermittent production, correlated shocks, constant feed-in premiums and price volatility

Taken from the last session of the Energy Game.

Here is what happens when off-peak demand is even lower than expected (-10%), while wind blows more than expected around wind farms (+27%). As a constant feed-in premium made it interesting to produce power from wind farms even at a null price, price on the wholesale market dropped to a very low level (2€ / kWh).

pricenullwindThis is even more dramatic later in the game, when flexibility features of power plants are taken into account.

In the next version of the game, it will be possible to have negative prices on the wholesale markets.

 

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