Market and economic case Sample Clauses

Market and economic case studies While grid integration and hydrologic impact studies may demonstrate the tech- nical feasibility of integrating wind and hydropower systems, implementation will often depend on the economic feasibility of a given project. Such economic feasibil- ity will depend on the type of electricity market in which the wind and hydro proj- ects are considered. Addressing economic feasibility in the electricity market will provide insight into which market types are practical for wind-hydro integration, as well as identify the key factors driving the economics.This understanding may provide opportunities to devise new methods of scheduling and pricing that are advanta- geous to wind-hydro integration and per- mit better use of system resources.These market and economic case studies will ad- dress the effects of today’s market structures on wind-hydro system economics with the intention of identifying the most effective market structures. Economic studies that consider the value of wind energy gen- eration and hydropower to the electricity customer are of greatest interest. Because economic feasibility is germane to integrat- ing wind and hydropower, each participat- ing country will contribute to these studies. Initial results of the case studies are consis- tent with other wind integration studies in that the efficiency and liquidity of the elec- tricity market has a large influence on the economics, frequently dominating all other factors. Further, an important factor in in- terpreting the economic consequences of integrating wind with hydro is the perspec- tive taken by the study—whether it is for the overall benefit of the electric customer or of a single actor in the market (e.g. a utility or wind developer).
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