Lynch, Muireann Á.
Lynch, Muireann Á.
Lynch, Muireann Á.
Now showing 1 - 8 of 8
- PublicationThe role of power-to-gas in the future energy system: Market and portfolio effects(Elsevier BV, 2019-10-15)
; ;Electricity systems based on renewables have an increasing demand for flexibility. This paper considers the potential of power-to-gas to provide flexibility and enhance system integration of renewables. Existing research on power-to-gas typically analyses the system effects of a predetermined power-to-gas unit without endogenising the investment decision. Moreover, insights related to market and portfolio effects of power-to-gas are rare. To this end this work presents a stochastic electricity market model. Market players considered include generating firms with different generation portfolios and different consumer groups. Firms earn revenues from an energy market, a capacity market and a feed-in premium for renewable generation. They maximise their profits by optimising the operation of existing assets and investing in new generation assets and power-to-gas. Firms with renewable generation benefit from investing in power-to-gas. While the technology itself is loss-making, power-to-gas particularly increases demand and hence prices in low-load hours. Therefore, renewable generation becomes more profitable, which justifies the investment. Metrics such as LCOE, which consider each technology in isolation, fail to capture this effect. The increase in the electricity price results in higher costs to consumers and so the overall transfer from consumers to wind generators increases in the presence of power-to-gas. 301Scopus© Citations 30
- PublicationWho Pays for Renewables? Increasing Renewable Subsidisation due to Increased Datacentre Demand in Ireland(WERI Education Research Development Printing Publication, Ltd., 2019-06-01)
;Demand from datacentres makes up a rapidly growing portion of electricity demand in Ireland. Increased demand in turn gives rise to increased renewable generation, mandated by government targets, and a corresponding increase in subsidisation levels. The current method of apportioning renewable subsidy costs may lead to consumers other than datacentres bearing this excess cost of subsidisation. This letter calculates the expected impact on these consumers. 265
- PublicationOptimal interconnection and renewable targets for north-west Europe(Elsevier, 2012-12)
; ;We present a mixed-integer, linear programming model for determining optimal interconnection for a given level of renewable generation using a cost minimisation approach. Optimal interconnection and capacity investment decisions are determined under various targets for renewable penetration. The model is applied to a test system for eight regions in Northern Europe. It is found that considerations on the supply side dominate demand side considerations when determining optimal interconnection investment: interconnection is found to decrease generation capacity investment and total costs only when there is a target for renewable generation. Higher wind integration costs see a concentration of wind in high-wind regions with interconnection to other regions. 432Scopus© Citations 29
- PublicationInducing truthful revelation of generator reliability(Elsevier BV, 2017-05)
;Liberalised electricity markets often include a capacity remuneration mechanism to allow generation firms recover their fixed costs. Various de-rating factors and/or penalties have been incorporated into such mechanisms in order to reward the unit based on the contribution they make to system security, which in turn depends on the unit's reliability. However, this reliability is known to the firm but not to the regulator. We adopt a mechanism design approach for capacity payments based on a declaration by the firm of their reliability. The mechanism scales payments and penalties according to this declared reliability such that the firm's profit-maximising strategy is to truthfully reveal its reliability. A stochastic mixed complementarity problem (MCP) is used to model the interactions between the firms, and we apply this methodology to a test system using Irish electricity market data. Truth-telling is induced, increasing the efficiency of capacity payments while eliminating the requirement for the regulator to allocate resources to discovering reliability. 268Scopus© Citations 1
- PublicationThe impacts of demand response participation in capacity markets(Elsevier BV, 2019-09-15)
; ; ;Demand Response is capable of reducing the total amount of generation capacity investment required to ensure electricity system security. We utilise this fact to devise a novel methodology to estimate the contribution of a load-shifting demand response resource to system adequacy. We then simulate an electricity market using mixed complementarity models to determine how the participation of demand response in capacity markets impacts on market outcomes. Demand response primarily affects the equilibrium outcome through the energy market, however demand response also reduces both equilibrium prices and consumer costs through its capacity market contribution. The effect is particularly pronounced when there is a high level of variable renewable generation and initial undercapacity. In the absence of demand response, increased wind generation leads to higher capacity prices as generators seek to offset depressed energy prices. However, we find that demand response's participation in the capacity market can combat these increased capacity prices. These results suggest that demand response participation in capacity markets can mitigate some of the market challenges of renewable integration, particularly that of the “missing money” problem. 435Scopus© Citations 53
- PublicationModelling demand response with process models and energy systems models: Potential applications for wastewater treatment within the energy-water nexus(Elsevier, 2020-02-15)
; ; ;A promising tool to achieve more flexibility within power systems is demand response (DR). End users in many strands of industry have been subject to research regarding the opportunities for implementing DR programmes. We review recent DR modelling approaches in the realm of energy systems models and industrial process models. We find that existing models over- or underestimate the available DR potential from an industrial end user for two main reasons. First, the interaction between power system operation and industrial process operation caused by DR is not taken into account. Second, models abstract from critical physical process constraints affecting the DR potential. To illustrate this, we discuss the wastewater treatment process as one industrial end user within the energy-water nexus, for which the lack of suitable modelling tools is affecting the accurate assessment of the DR potential. Case studies indicate the potential for wastewater treatment plants to provide DR, but no study acknowledges the endogeneity of energy prices which arises from a large-scale utilisation of DR. Therefore, we propose an integrated modelling approach, combining energy system optimisation with the level of operational detail in process simulation models. This will yield a higher level of accuracy regarding the assessment of DR potential from a specific process, such as wastewater treatment. 4Scopus© Citations 33
- PublicationInvestment vs. Refurbishment: Examining Capacity Payment Mechanisms Using Stochastic Mixed Complementarity Problems(International Association for Energy Economics (IAEE), 2017-04-01)
;Capacity remuneration mechanisms exist in many electricity markets. Capacity mechanism designs do not explicitly consider the effects of refurbishment of existing generation units in order to increase their reliability. This paper presents a stochastic mixed complementarity problem to examine the impact of refurbishment on electricity prices and generation investment. Capacity payments are found to increase reliability when refurbishment is not possible, while capacity payments and reliability options yield similar results when refurbishment is possible. Final costs to consumers are similar under the two mechanisms with the exception of the initial case of overcapacity. 239Scopus© Citations 14
- PublicationThe effect of Demand Response and wind generation on electricity investment and operation(Elsevier, 2019-03)
; ; ;We present a novel method of determining the contribution of load-shifting Demand Response (DR) to energy and reserve markets. We model DR in an Mixed Complementarity Problem (MCP) framework with high levels of wind penetration. Investment, exit and operational decisions are optimized simultaneously. We examine the potential for DR to participate in both energy and reserve markets. DR participation in the energy market reduces costs and prices and gives rise to lower equilibrium levels of investment in conventional generation. DR and wind generation are strongly complementary, due to the ability of DR to mitigate against the variability of wind generation, with the highest reduction of consumer costs seen at high levels of wind penetration. The total impact of DR is highly dependent on specific system characteristics. 457Scopus© Citations 12