Module B1 Study Book - the Graduate School of the Environment

Reducing output from a source that produces at almost zero marginal costs
might sound odd. But the flexibility offered by wind turbines can be very
valuable for an electricity system, as the alternative of shutting down or partloading
coal and combined cycle gas turbines implies higher energy and
maintenance costs for subsequently heating them up. New tariff systems or
contractual arrangements could make this a real option.
Costs of wind power integration
Strbac et al. (2002) were commissioned by the UK Department of Trade
and Industry (DTI) to carry out a study 'Quantifying the System Costs of
Additional Renewables' to the UK electricity grid in 2020 (also known as the
SCAR report).
In a scenario using a mix of biomass and wind, it was found that the total
additional system costs per year for a 20% renewables share were €205m
(£143m) in 2020, translating into total additional system costs of €4.9 per
MWh of renewable electricity compared to current wholesale electricity prices
in the UK of about €47 (£32).
The highest additional system costs were found for a scenario where the
renewables share would come predominantly from wind, mostly located in
Scotland and off-shore, far away from load centres. Here the per annum
additional system costs would be €570m (£398m) in 2020, translating into
total additional system costs of approximately €14 per MWh of renewable
electricity, in this case almost entirely from wind.
C. Decentralised energy [DE]
With thanks to Greenpeace report: Decentralising power: an energy revolution
for the 21st century.
‘In the early years of the new millennium, the electricity system, the
bloodstream of industrial society, is going to change almost beyond
recognition. It will have to.’
Walt Patterson, Royal Institute of International Affairs
What is it, in principle?
http://www.ofgem.gov.uk/temp/ofgem/cache/cmsattach/10 20_
factsheet0602_27feb.pdf
Lecture: Britains Power System 99