Do Policies to Encourage Wind Energy Inadvertently Pose Challenges to Electric Power Reliability? Evidence from the 50Hertz Control Area in Germany

An econometric analysis indicates that the higher is wind energy's share of forecasted demand, the more likely it is that the system operator will find it prudent to undertake non-traditional measures to maintain reliability. This should serve as a reminder that policies developed without affording due consideration to important technical issues are apt to run afoul of the law of unintended consequences.Each second, the amount of electricity generated must correspond to the quantity of electricity needed. It is not (yet) possible to store large quantities of electricity. Continuously maintaining the balance between production and consumption is one of our key tasks. The growing share of renewable energies and dynamic developments on the market pose ever greater challenges in day-to-day operations. Particularly the growing share of highly volatile volumes of renewable energies that are difficult to forecast…– 50Hertz, 2010 Annual Report