Simplified methods for renewable generation capacity credit calculation: A critical review

Capacity credits are widely used to quantify the
ability of different generating technologies to support demand.
Most practical capacity credit calculations are based on detailed
risk modelling, however a wide range of simplified approaches
are also in use. This paper presents a critical review of these
simplified approaches, ranging from annual peak calculations and
probabilistic representations of wind, to closed-form expressions
derived for small installed wind capacities. The principal themes
are that simplified methods must retain the key features of
the problem at hand, and that to be of interest simplified
methods must either bring substantial computational advantages,
or provide additional insight beyond that from a more detailed
risk calculation.