The impact of the North Atlantic Oscillation on electricity markets: A case study on Ireland
The North Atlantic Oscillation (NAO) is a large-scale atmospheric circulation pattern driving climate variability in north-western Europe. As the deployment of wind-powered generation expands on electricity networks across Europe, the impacts of the NAO on the electricity system will be amplified. T...
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ftrepec:oai:RePEc:eee:eneeco:v:58:y:2016:i:c:p:186-198 2024-04-14T08:15:28+00:00 The impact of the North Atlantic Oscillation on electricity markets: A case study on Ireland Curtis, John Lynch, Muireann Á. Zubiate, Laura http://www.sciencedirect.com/science/article/pii/S014098831630175X unknown http://www.sciencedirect.com/science/article/pii/S014098831630175X article ftrepec 2024-03-19T10:34:05Z The North Atlantic Oscillation (NAO) is a large-scale atmospheric circulation pattern driving climate variability in north-western Europe. As the deployment of wind-powered generation expands on electricity networks across Europe, the impacts of the NAO on the electricity system will be amplified. This study assesses the impact of the NAO, via wind-power generation, on the electricity market considering thermal generation costs, wholesale electricity prices and wind generation subsidies. A Monte Carlo approach is used to model NAO phases and generate hourly wind speed time-series data, electricity demand and fuel input data. A least-cost unit commitment and economic dispatch model is used to simulate an island electricity system, modelled on the all-island Irish electricity system. The impact of the NAO obviously depends on the level of wind capacity within an electricity system. Our results indicate that on average a switch from negative to positive NAO phase can reduce thermal generation costs by up to 8%, reduce wholesale electricity prices by as much as €1.5/MWh, and increase wind power generators' revenue by 12%. North Atlantic Oscillation; NAO; Electricity; Wind; Prices; Subsidy; Article in Journal/Newspaper North Atlantic North Atlantic oscillation RePEc (Research Papers in Economics) |
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RePEc (Research Papers in Economics) |
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The North Atlantic Oscillation (NAO) is a large-scale atmospheric circulation pattern driving climate variability in north-western Europe. As the deployment of wind-powered generation expands on electricity networks across Europe, the impacts of the NAO on the electricity system will be amplified. This study assesses the impact of the NAO, via wind-power generation, on the electricity market considering thermal generation costs, wholesale electricity prices and wind generation subsidies. A Monte Carlo approach is used to model NAO phases and generate hourly wind speed time-series data, electricity demand and fuel input data. A least-cost unit commitment and economic dispatch model is used to simulate an island electricity system, modelled on the all-island Irish electricity system. The impact of the NAO obviously depends on the level of wind capacity within an electricity system. Our results indicate that on average a switch from negative to positive NAO phase can reduce thermal generation costs by up to 8%, reduce wholesale electricity prices by as much as €1.5/MWh, and increase wind power generators' revenue by 12%. North Atlantic Oscillation; NAO; Electricity; Wind; Prices; Subsidy; |
format |
Article in Journal/Newspaper |
author |
Curtis, John Lynch, Muireann Á. Zubiate, Laura |
spellingShingle |
Curtis, John Lynch, Muireann Á. Zubiate, Laura The impact of the North Atlantic Oscillation on electricity markets: A case study on Ireland |
author_facet |
Curtis, John Lynch, Muireann Á. Zubiate, Laura |
author_sort |
Curtis, John |
title |
The impact of the North Atlantic Oscillation on electricity markets: A case study on Ireland |
title_short |
The impact of the North Atlantic Oscillation on electricity markets: A case study on Ireland |
title_full |
The impact of the North Atlantic Oscillation on electricity markets: A case study on Ireland |
title_fullStr |
The impact of the North Atlantic Oscillation on electricity markets: A case study on Ireland |
title_full_unstemmed |
The impact of the North Atlantic Oscillation on electricity markets: A case study on Ireland |
title_sort |
impact of the north atlantic oscillation on electricity markets: a case study on ireland |
url |
http://www.sciencedirect.com/science/article/pii/S014098831630175X |
genre |
North Atlantic North Atlantic oscillation |
genre_facet |
North Atlantic North Atlantic oscillation |
op_relation |
http://www.sciencedirect.com/science/article/pii/S014098831630175X |
_version_ |
1796313818344718336 |