Consequence Analysis by Marginal Cost for Balancing Capacity Interchange to the Power System with Considerable Share of VRE

Abstract

Toward low carbon society, renewable energy is expected to play the major role in mitigating carbon emission from power sector, however, with significant amount and share of grid connected variable renewable energy (VRE), namely PV and wind, balance between necessary balancing capacity and available balancing capacity must be always properly maintained. This paper presents an analysis how the power system and market will be changed, taking the Japanese power system in 2030, focusing on the consequence of balancing capability interchange through interconnection using marginal cost based on the newly developed demand-supply analysis model.