Integration of Wind Power into the Danish Power System

Viktor J. Rácz, Priyadarshini Yadav, Niels Vestergaard

Publikation: Bog/rapportRapportForskning


Wind energy is a major player in the Danish electricity market with an ambitious goal to pursue 50% of the electricity market by 2020. This paper examines the economic impacts of increasing integration of large-scale wind power to the existing electrical grid. Firstly, we survey the literature in this regard, which introduces the advent of wind energy in Denmark through the years and policies behind its success. We describe the Danish electricity market and its collaborated functioning with the Nord Pool Spot market, so as to introduce the functioning of the electricity market that determines the price of electricity. We have observed the degree of influence of the fossil fuel prices, total demand, wind power production and import on the electricity price and the individual co-efficiency for the years 2000, 2005 and 2010, according to the energy mix. Using a grid management model for the Western Denmark region, we simulate the effect of an increase in wind penetration level on the electricity generation costs and on the CO2 emissions at various penetration levels. The results show that as the wind penetration level increases the cost of electricity production rises thus, reducing the CO2 emission becomes price contradictory.
ForlagUniversity of Southern Denmark, Department of Environmental and Business Economics
Vol/bindIME Report Serie 14/13
StatusUdgivet - 14. feb. 2013
NavnIME Report