Electricity market participation of wind farms: the success story of the Spanish pragmatism

Abstract

In the last 10 years, more than 15 GW of wind power (Asociación Empresarial Eólica (Spanish Wind Energy Association), Nota de prensa (Press release) 17 de enero de 2008. http://www.aeeolica.org/doc/NP_080117_Espana_supera_los_15000_MW_eolicos.pdf) have been installed in Spain, of which more than 3.5 GW in 2007. Furthermore, plans are to reach 20 GW by 2010 and there are expectations of an installed capacity exceeding 40 GW by 2020. This article will present the innovative solutions for technical and economical integration that allow to reach such high level wind penetration objectives (the system peaks at around 44 GW and is almost isolated). It will be described how the regulation has evolved from a pure Feed-in-Tariff to a market+premium option, where technical and economic integration has been a priority. Today, approximately 97% of installed wind capacity accesses the Spanish wholesale electricity market. Market integration has been crucial, sending the correct signals to participants to look for the optimum technical solutions. Technical improvements have come from both wind power producers (fault-ride-through capabilities, visibility and controllability of wind power, power production forecasting, reactive power control) and the system operator (specific control centre dedicated to Renewable Energy Sources (RES), new security analysis tools, gaining technical confidence of wind capabilities).