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It is also evident that, generally, the potential for exercising market power (i.e.
pushing the market price in Western Denmark up through strategic bidding into Nord
Pool) is highest during hours with large wind power production in the Eltra area. The
reason is that, in such situations, producers can raise the price in Western Denmark to
match the price level of its neighbours and hence reap the extra profit.
10.3.6 Wind power and system analysis
10.3.6.1 The Eltra SIVAEL model, including stochastic wind power descri ption
In view of the large share of wind power in the Eltra system, Eltra has updated the SIVAEL
simulation model to include the stochastic behaviour of wind power (Pedersen, 2003).
The standard SIVAEL model (Eriksen, 1993, 2001; Pedersen, 1990; Ravn, 1992) solves
the problem of how to schedule power production in the best way. It generates the
scheduling of power production units, heat production units and CHP units on a weekly
basis. The constraints require the power and heat demand and the demand for spinning
reserves to be met every hour of the week. The scheduling includes unit commitment
(start–stop of units) and load dispatching (unit production rates of power and heat).
SIVAEL handles power and heat generation plants, heat storage systems, wind
turbines, foreign exchange, immersion heaters, heat pumps and electricity storage. The
scheduling is carried out with the objective of minimising total variable costs, which
include variable operational and maintenance costs and startup costs.
By its nature, wind power is largely unpredictable (see Sectio n 10.2.6 and Section
10.3.3). The new and improved SIVAEL model simulates wind power prediction errors
as a stochastic process. The parameters in the stochastic model description have been
estimated from observations of wind power forecast errors throughout the year within
the Eltra system. The work has been carried out in cooperat ion with IMM at the
Technical University of Denmark (DTU).
As a new feature, the updated SIVAEL model can simulate the need for upward and
downward regulation of the system, due to changes in wind power in the real-time hour
of operation. A change in wind power is by far the most important source of unforeseen
regulation in the Eltra system.
With the model it is possible to compare for each hour the need for regulating the
system with the available resources, including:
.
regulation of primary central units;
.
regulation via transmission lines to neighbouring areas;
.
regulation of local small-scale CHP units.
The present version does not include the formal optimisation of the use of the regulating
resources generated by local CHP units . The optimisation is limited to the two other
resources: primary central units and the trans mission system. However, the model may
be expanded and used for an evaluation of the regulating potential of local CHP units.
Figure 10.23 shows hourly values of simulated wind power prediction errors through-
out a year, in the future. The errors are measured as a percentage of the hourly wind
power forecasts (with positive figures when produ ction exceeds forecast).
226 The Danish Power System