McInerney, C and Bunn, D W (2016) Optimal over-installation of wind generation facilities. Energy Economics, 61. pp. 87-96. ISSN 0140-9883
Abstract
This paper evaluates the economic benefits to over-installing turbines on capacity-constrained wind farm sites in order to capture more energy at low wind speeds. Although this implies curtailment at high wind speeds, we show that over installing generation facilities can increase returns to investors and reduce system costs. A detailed model-based analysis is developed using British data, with variations in the range of over installation, the renewable policy support systems (fixed feed-in tariffs or green certificate premia to wholesale energy prices) and the extent of replacement of fossil generation in the technology mix with wind. In the cases of premia to market prices, we use agent-based, computational learning and risk simulation to model market prices. Not only is over installation beneficial under fixed feed-in tariffs, but is more so under premia to market prices and increasingly so as wind replaces fossil generation.
More Details
Item Type: | Article |
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Subject Areas: | Management Science and Operations |
Additional Information: |
© 2016 Elsevier. This manuscript version is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0 |
Date Deposited: | 12 Dec 2016 17:16 |
Date of first compliant deposit: | 30 Nov 2016 |
Subjects: |
Investment appraisal Direct investment Economics Investment and growth Renewable energy industry Risk |
Last Modified: | 05 Nov 2024 03:02 |
URI: | https://lbsresearch.london.edu/id/eprint/589 |