Energy Crisis: Turn the Wind Turbines Off When the Electricity Prices Get Too Low
December 7th, 2014What we’re dealing with in New Zealand is sort of mini, South Pacific version of Enron.
—New Zealand: Commercial Solar Boom Underway
Most people in New Zealand haven’t heard of Enron’s numerous and insidious scams, but they should familiarize themselves with what happened:
Before passage of the deregulation law, there had been only one Stage 3 rolling blackout declared. After passage, California had a total of 38 blackouts defined as Stage 3 rolling blackouts, until federal regulators intervened during June 2001. These blackouts occurred mainly as a result of a poorly designed market system that was manipulated by traders and marketers. Enron traders were revealed as intentionally encouraging the removal of power from the market during California’s energy crisis by encouraging suppliers to shut down plants to perform unnecessary maintenance, as documented in recordings made at the time. These acts contributed to the need for rolling blackouts, which adversely affected many businesses dependent upon a reliable supply of electricity, and inconvenienced a large number of retail consumers. This scattered supply increased the price exponentially, and Enron traders were thus able to sell power at premium prices, sometimes up to a factor of 20x its normal peak value.
And now…
Via: Electricity Authority New Zealand (.pdf):
Breach alleged of TrustPower Limited
Alleged breach reported by the system operator.
TrustPower reduced output at its Tararua wind farm from around 80MW to 0MW between 02:27 and 02:41on 21 May 2014 due to low prices, without notifying Transpower New Zealand Limited as the system operator. TrustPower denied the breaches.
More: Meridian Removed Reserves During Grid Emergency Without Physical Justification
And don’t think that the unexpected power curtailment doesn’t adversely affect the operating budget of the wind project. Particularly if the partice is continued, pervasive, and executed with impunity. While customers pay a higher cost the viability of the project is compromised as actual production falls below forecast for reasons other than weather.