Wind Power Volatility and its Impact on Production Failures in the Nordic Electricity Market

Reprint No. 2017:22

Author(s): Sara Fogelberg and Ewa LazarczykYear: 2017 Title: Renewable Energy Volume (No.): 105 (May) Pages: 96–105
Online article (restrictions may apply)
Preliminary version

Wind power generation of electricity has gained popular support because of its low environmental impact and its low costs relative to other renewable energy sources. However, concerns have been raised in the power sector that wind power generation will come at the price of increased damage to other power generators. Wind power generation is naturally volatile which requires other power sources to start up and shut down in accordance with weather conditions, which for instance coal or gas generators are in general not built to do. The previous literature has used simulations to show that the damage done and the associated costs can be substantial. We use a dataset containing all reported failures in the Nordic electricity market Nord Pool and data for Danish wind power generation. The analysis shows that for both Denmark and the rest of Nord Pool the short-term costs associated with the volatility of wind power generation are non-significant.

Fogelberg, Sara and Ewa Lazarczyk (2017), "Wind Power Volatility and its Impact on Production Failures in the Nordic Electricity Market". Renewable Energy 105(May), 96–105.

An Agenda for Europe

Institutional Reform for Innovation and Entrepreneurship

Omslag 2017 Institutional Reform for Innovation and Entrepreneurship.jpg

The authors of this book, Niklas Elert, Magnus Henrekson and Mikael Stenkula, advise the economies of the European Union to become more entrepreneurial in promoting innovation and economic growth. The authors propose a reform strategy with respect to several aspects to achieve this goal.


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