Power systems’ performance under high renewables’ penetration rates: a natural experiment due to the COVID-19 demand shock
COVID-19 lockdowns make it possible to investigate the extent to which an unprecedented increase in renewables’ penetration may have brought unexpected limitations and vulnerabilities of current power systems to the surface. We empirically investigate how power systems in five European countries hav...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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IOP Publishing
2021-01-01
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| Series: | Environmental Research Letters |
| Subjects: | |
| Online Access: | https://doi.org/10.1088/1748-9326/abfba2 |
| _version_ | 1797747687330676736 |
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| author | Francesco Pietro Colelli Daan Witkop Enrica De Cian Massimo Tavoni |
| author_facet | Francesco Pietro Colelli Daan Witkop Enrica De Cian Massimo Tavoni |
| author_sort | Francesco Pietro Colelli |
| collection | DOAJ |
| description | COVID-19 lockdowns make it possible to investigate the extent to which an unprecedented increase in renewables’ penetration may have brought unexpected limitations and vulnerabilities of current power systems to the surface. We empirically investigate how power systems in five European countries have dealt with this unexpected shock, drastically changing electricity load, the scheduling of dispatchable generation technologies, electricity day-ahead wholesale prices, and balancing costs. We find that low-cost dispatchable generation from hydro and nuclear sources has fulfilled most of the net-load even during peak hours, replacing more costly fossil-based generation. In Germany, the UK, and Spain coal power plants stood idle, while gas-fired generation has responded in heterogeneous ways across power systems. Falling operational costs of generators producing at the margin and lower demand, both induced by COVID-19 lockdowns, have significantly decreased wholesale prices. Balancing and other ancillary services’ markets have provided the flexibility required to respond to the exceptional market conditions faced by the grid. Balancing costs for flexibility services have increased heterogeneously across countries, while ancillary markets’ costs, measured only in the case of Italy, have increased substantially. Results provide valuable evidence on current systems’ dynamics during high renewables’ shares and increased demand volatility. New insights into the market changes countries will be facing in the transition towards a clean, secure, and affordable power system are offered. |
| first_indexed | 2024-03-12T15:54:21Z |
| format | Article |
| id | doaj.art-d17dc24933fd40d2a80b3d0cea2f6ae6 |
| institution | Directory Open Access Journal |
| issn | 1748-9326 |
| language | English |
| last_indexed | 2024-03-12T15:54:21Z |
| publishDate | 2021-01-01 |
| publisher | IOP Publishing |
| record_format | Article |
| series | Environmental Research Letters |
| spelling | doaj.art-d17dc24933fd40d2a80b3d0cea2f6ae62023-08-09T15:00:06ZengIOP PublishingEnvironmental Research Letters1748-93262021-01-0116606401810.1088/1748-9326/abfba2Power systems’ performance under high renewables’ penetration rates: a natural experiment due to the COVID-19 demand shockFrancesco Pietro Colelli0https://orcid.org/0000-0003-3507-8118Daan Witkop1Enrica De Cian2https://orcid.org/0000-0001-7134-2540Massimo Tavoni3https://orcid.org/0000-0001-5069-4707Department of Economics, Ca’Foscari University of Venice , Venice, Italy; Centro Euro-Mediterraneo sui Cambiamenti Climatici , Venice, Italy; RFF-CMCC European Institute on Economics and the Environment , Milan, ItalyMinistry of Economic Affairs and Climate Policy, Government of the Netherlands , The Hague, The NetherlandsDepartment of Economics, Ca’Foscari University of Venice , Venice, Italy; Centro Euro-Mediterraneo sui Cambiamenti Climatici , Venice, Italy; RFF-CMCC European Institute on Economics and the Environment , Milan, ItalyCentro Euro-Mediterraneo sui Cambiamenti Climatici , Venice, Italy; RFF-CMCC European Institute on Economics and the Environment , Milan, Italy; School of Management, Politecnico di Milano , Milan, ItalyCOVID-19 lockdowns make it possible to investigate the extent to which an unprecedented increase in renewables’ penetration may have brought unexpected limitations and vulnerabilities of current power systems to the surface. We empirically investigate how power systems in five European countries have dealt with this unexpected shock, drastically changing electricity load, the scheduling of dispatchable generation technologies, electricity day-ahead wholesale prices, and balancing costs. We find that low-cost dispatchable generation from hydro and nuclear sources has fulfilled most of the net-load even during peak hours, replacing more costly fossil-based generation. In Germany, the UK, and Spain coal power plants stood idle, while gas-fired generation has responded in heterogeneous ways across power systems. Falling operational costs of generators producing at the margin and lower demand, both induced by COVID-19 lockdowns, have significantly decreased wholesale prices. Balancing and other ancillary services’ markets have provided the flexibility required to respond to the exceptional market conditions faced by the grid. Balancing costs for flexibility services have increased heterogeneously across countries, while ancillary markets’ costs, measured only in the case of Italy, have increased substantially. Results provide valuable evidence on current systems’ dynamics during high renewables’ shares and increased demand volatility. New insights into the market changes countries will be facing in the transition towards a clean, secure, and affordable power system are offered.https://doi.org/10.1088/1748-9326/abfba2SARS-CoV-2energyrenewable energyclimate change |
| spellingShingle | Francesco Pietro Colelli Daan Witkop Enrica De Cian Massimo Tavoni Power systems’ performance under high renewables’ penetration rates: a natural experiment due to the COVID-19 demand shock Environmental Research Letters SARS-CoV-2 energy renewable energy climate change |
| title | Power systems’ performance under high renewables’ penetration rates: a natural experiment due to the COVID-19 demand shock |
| title_full | Power systems’ performance under high renewables’ penetration rates: a natural experiment due to the COVID-19 demand shock |
| title_fullStr | Power systems’ performance under high renewables’ penetration rates: a natural experiment due to the COVID-19 demand shock |
| title_full_unstemmed | Power systems’ performance under high renewables’ penetration rates: a natural experiment due to the COVID-19 demand shock |
| title_short | Power systems’ performance under high renewables’ penetration rates: a natural experiment due to the COVID-19 demand shock |
| title_sort | power systems performance under high renewables penetration rates a natural experiment due to the covid 19 demand shock |
| topic | SARS-CoV-2 energy renewable energy climate change |
| url | https://doi.org/10.1088/1748-9326/abfba2 |
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