Capacity Credit, Fuel Saving and Need For Extra Back-up
Many commentators concentrate on whether or not wind has any "capacity credit" without defining what they mean by this and its relevance. Wind does have a capacity credit, using a widely accepted and meaningful definition, equal to about 20% of its rated output (but this figure varies depending on actual circumstances). This means that reserve capacity on a system equal in MW to 20% of added wind could be retired when such wind is added without affecting system security or robustness.
UK academic commentator Graham Sinden, of Oxford University, argues that this issue of capacity credit is a "red herring" in that the value of wind generation is largely due to the value of displaced fuel, not any perceived capacity credit – it being well understood by the wind energy proponents that conventional capacity will be retained to "fill in" during periods of low or no wind. The main value of wind, (in the UK, 5 times the capacity credit value) is its fuel and CO2 savings. Wind does not require any extra back-up, as is often wrongly claimed, since it uses the existing power stations, which are already built, as back-up, and which are started up during low wind periods, just as they are started up now, during the non availability of other conventional plant. More spinning reserve, of existing plant, is required, but this again is already built and has a low cost comparatively.
Read more about this topic: Intermittent Energy Source
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