Wind park cost efficiency increase through direct cooperation with demand side response provider

Abstract

Demand side response enables cost optimization for energy systems and consumers. By tradition, the target of the demand side response is to shift the loads from high price or peak-load periods to low price or low consumption periods. The economic effect is derived from reduced energy purchasing costs. This paper focuses on the possibility to provide demand side response for a wind park through direct cooperation by means of reduced production forecast errors. These errors are costly, as in open electricity market, overproduction is usually sold at a lower price and in underproduction it is required to purchase balancing energy from an electricity market. Forecasting errors always occur, as a forecast consists of wind speed predictions and does not take into account unexpected stops. Demand side response will reduce the imbalance between forecasted and actual production in wind parks. Direct cooperation between a response provider and a wind park is complex, as the forecast errors will define the need for the demand side response. For that reason, it is required to analyze wind park forecast errors in order to define the requirements for the demand side response capacity and an energy storage size. On the other hand, the solution proposed in this paper has benefits, as a demand side response provider does not need to participate in energy market. From that fact electricity market requirements are not applicable, as an example there is no need to have certain capacity available to participate in market.