FLOW Dynamic Power Management

Market Interaction of offshore wind farms (Ancillary services provision)

Published: 11/06/2015

The rapidly growing share of variable renewable energy sources in power markets brings new challenges for the maintenance of system security. This report aims to outline the role offshore wind can play for the provision of ancillary services (AS), like the provision of control reserve for balancing of demand and supply and stabilizing the grid frequency.

The analysis starts by a detailed examination and comparison of the Dutch and German market frameworks. The technical requirements for the provision of AS and the market design or remuneration for the service are presented and potential barriers for the provision of such services by offshore wind farms (OWF) are highlighted. Further, an extensive modelling analysis is presented for the quantification of the potentials for additional OWF revenues and system cost savings coming with the participation of OWFs in the German negative tertiary control reserve (TCR) market. The report investigates the key market barriers in distinct case studies and shows which market design changes could substantially increase the attractiveness of the negative TCR market for OWFs by adding flexibility to the market and reducing market barriers for fluctuating energy sources.

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Edwin Haesen
Energy Systems and Markets