The impact of the North Atlantic Oscillation on electricity markets: A case study on Ireland
The North Atlantic Oscillation (NAO) is a large-scale 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 ass...
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ftzbwkiel:oai:econstor.eu:10419/129408 2024-01-14T10:08:53+01:00 The impact of the North Atlantic Oscillation on electricity markets: A case study on Ireland Curtis, John A. Lynch, Muireann Á. Zubiate, Laura 2015 http://hdl.handle.net/10419/129408 eng eng Dublin: The Economic and Social Research Institute (ESRI) Series: ESRI Working Paper No. 509 gbv-ppn:83253191X http://hdl.handle.net/10419/129408 http://www.econstor.eu/dspace/Nutzungsbedingungen ddc:330 North Atlantic Oscillation NAO electricity prices subsidy doc-type:workingPaper 2015 ftzbwkiel 2023-12-18T00:46:16Z The North Atlantic Oscillation (NAO) is a large-scale 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 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 NAO obviously depends on the level of wind capacity within an electricity system. Our results indicate that NAO phases can affect thermal generation costs by up to 8%, wholesale electricity prices by as much as €1.5/MWh, and that wind power generators receive on average 12% higher remuneration. Report North Atlantic North Atlantic oscillation EconStor (German National Library of Economics, ZBW) |
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EconStor (German National Library of Economics, ZBW) |
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language |
English |
topic |
ddc:330 North Atlantic Oscillation NAO electricity prices subsidy |
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ddc:330 North Atlantic Oscillation NAO electricity prices subsidy Curtis, John A. Lynch, Muireann Á. Zubiate, Laura The impact of the North Atlantic Oscillation on electricity markets: A case study on Ireland |
topic_facet |
ddc:330 North Atlantic Oscillation NAO electricity prices subsidy |
description |
The North Atlantic Oscillation (NAO) is a large-scale 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 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 NAO obviously depends on the level of wind capacity within an electricity system. Our results indicate that NAO phases can affect thermal generation costs by up to 8%, wholesale electricity prices by as much as €1.5/MWh, and that wind power generators receive on average 12% higher remuneration. |
format |
Report |
author |
Curtis, John A. Lynch, Muireann Á. Zubiate, Laura |
author_facet |
Curtis, John A. Lynch, Muireann Á. Zubiate, Laura |
author_sort |
Curtis, John A. |
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 |
publisher |
Dublin: The Economic and Social Research Institute (ESRI) |
publishDate |
2015 |
url |
http://hdl.handle.net/10419/129408 |
genre |
North Atlantic North Atlantic oscillation |
genre_facet |
North Atlantic North Atlantic oscillation |
op_relation |
Series: ESRI Working Paper No. 509 gbv-ppn:83253191X http://hdl.handle.net/10419/129408 |
op_rights |
http://www.econstor.eu/dspace/Nutzungsbedingungen |
_version_ |
1788063296542212096 |