System-friendly wind power: How advanced wind turbine design can increase the economic value of electricity generated through wind power

- This study compares “advanced” (low specific rating) wind turbines with “classical” design.
- Advanced turbines generate electricity more constantly.
- The economic value of power generated by such turbines is significantly higher.
- Turbine design is an important means to mitigate the value drop of wind power.
- Moreover, advanced turbines reduce costs for grid investment and balancing.

Previous studies find that the economic value of electricity (USD/MWh) generated by wind power drops with increasing market share. Different measures can help mitigate the value drop, including electricity storage, flexible conventional plants, expansion of transmission, and demand response. This study assesses another option: a change in design of wind power plants. “Advanced” wind turbines that are higher and have a larger rotor compared to rated capacity (lower specific rating) generate electricity more constantly than “classical” turbines. Recent years have witnessed a significant shift towards such advanced technology. Our model-based analysis for Northwestern Europe shows that such design can substantially increase the spot market value of generated electricity. At a 30% penetration rate, the value of 1 MWh of electricity generated from a fleet of advanced turbines is estimated to be 15% higher than the value of 1 MWh from classical turbines. The additional value is large, whether compared to wind generation costs, to the value drop, or to the effect of alternative measures such as electricity storage. Extensive sensitivity tests indicate that this finding is remarkably robust. The increase in bulk power value is not the only advantage of advanced turbines: additional benefits might accrue from reduced costs for power grids and balancing services. To fully realize this potential, power markets and support policies need to be appropriately designed and signal scarcity investors.

The market value of wind power as a function of wind penetration in annual energy terms. Value is expressed relative to the average electricity price (value factor). At 30% market share, each MWh of wind power is worth 15% more if generated by advanced turbines compared to classical technology.46