Paper Info
Title
The Impact of Variable Market Price on Optimal Control of Wind-Hydro Storage System in Kenya
Abstract
The Lake Turkana Wind Power Project (LTWP) in Northern Kenya is currently under development, scheduled to bring 300MW of wind generation online by the end of 2016. The economic issues raised by the structure of the Kenyan electricity market include a fixed feed-in tariff for the wind generators on the system, and a strict Power Purchase Agreement (PPA). This agreement appears to significantly constrain the ability of the Kenya Power Company to operate the power system in a reliable and efficient manner. This paper analyzes the impact of different price policies on the operation of the LTWP coupled with pumped hydro storage. In particular the modeling results compare the system behavior when operating under the fixed price regime versus dynamic pricing defined by use of locational marginal prices. In addition, benefits from allowing the Kenya Power Company to spill wind as needed, rather than a strict requirement to take all wind power generated are investigated. The results demonstrate that the inclusion of system-driven prices produce a significantly different operational strategy than the fixed price model. Results also show that the exclusion of dispatch flexibility in the form of wind curtailment results in increased price volatility, particularly during periods of high winds.
Year
DOI
Venue
2014
10.1109/HICSS.2014.303
HICSS
Keywords
Field
DocType
dispatch flexibility,variable market price,pumped hydro storage,optimal control,fixed price model,wind-hydro storage system,price volatility,electricity market,locational marginal prices,electricity pricing,wind curtailment result,feed-in tariff,ppa,wind curtailment,developing countries,wind generator,pumped-storage power stations,power 300 mw,wind generation online,high wind,tariffs,power generation economics,kenya,wind power,fixed price regime,lake turkana wind power project,lake turkana wind power,power purchase agreement,different price policy,power markets,dynamic pricing,ltwp,pricing,kenya power company,wind power plants
Electricity market,Economics,Microeconomics,Market price,Electric power system,Fixed price,Power purchase agreement,Knowledge management,Pumped-storage hydroelectricity,Wind power,Environmental economics,Electricity pricing
Conference
ISSN
Citations 
PageRank 
1060-3425
0
0.34
References 
Authors
1
4
Name
Order
Citations
PageRank
Maureen Murage100.34
Judith B. Cardell2178.89
June Lukuyu300.34
C. Lindsay Anderson43511.16