Exploring wind curtailment effects and economic implications in the growing variable renewable energy penetration

Abstract

Several countries continue to invest in variable renewable energy (VRE) sources to replace fossil fuels and achieve a nationally determined contribution. Consequently, as the share of VRE generation in each country's power grid increases, its curtailment also increases. Current studies on VRE curtailment are based on a comparative analysis of statistical data collected from different countries. However, only a few studies present detailed results based on historical curtailment data collected from individual wind farms. This study analyzes the curtailment data collected for three wind farms over four years. The duration, curtailed output, and cost per curtailment were determined to be 200 min, 38 MWh, and $3.02k, respectively. Finally, the curtailment loss to wind farms caused by the increasing share of VRE generation in the power grid was estimated. The curtailed output and curtailment cost are estimated to increase by 1.3 GWh and $107.6k, respectively, when the share of VRE in the power grid increases by 1%. These findings can aid in identifying the curtailment experienced by wind farm operators and subsequent potential economic losses. Moreover, they can form the basis for establishing an efficient curtailment cost compensation system.