To Spin or Not to Spin? The Hidden Costs of Curtailment
Optimising Dispatch Strategies for Offshore Wind Turbines in the Volatile Electricity Market
J.L. van der Schans (TU Delft - Technology, Policy and Management)
R.A. Verzijlbergh – Mentor (TU Delft - Energy and Industry)
E. Schröder – Mentor (TU Delft - Economics of Technology and Innovation)
Stefan Pfenninger – Mentor (TU Delft - Energy and Industry)
R. Bos – Mentor (Eneco)
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Abstract
The increasing integration of offshore wind energy into volatile electricity markets necessitates more frequent curtailment as a response to negative pricing conditions. Although curtailment can mitigate short-term financial losses, its long-term impacts on offshore wind turbine (OWT) degradation remain largely unaddressed. This thesis investigates the hidden costs associated with curtailment, focusing specifically on the degradation of critical turbine components, including the gearbox, blades, and support structures. By developing and comparing optimisation models, this research evaluates the effectiveness of coordinated curtailment strategies that integrate asset health considerations with market-driven objectives.
Three distinct optimisation frameworks are proposed: a baseline reflecting current market-driven curtailment practices, a centralised strategy optimising asset health and financial performance collectively, and a decentralised approach applying the Alternating Direction Method of Multipliers (ADMM) to address fragmented stakeholder interests. Results indicate significant benefits from centralised coordination, showing a notable reduction in investment costs and a substantial increase in overall profit, as well as improved return on investment. However, contractual complexities and data-sharing constraints can hinder centralised implementation, highlighting the potential advantages of a decentralised strategy.
The findings underscore the value of internalising asset health into curtailment decisions, demonstrating clear financial and operational improvements. Looking ahead, the value of centralised coordination is expected to grow as electricity markets experience increasing negative price events and greater volatility, driven by a higher share of variable renewable energy sources. Consequently, internalising asset health in curtailment strategies will become increasingly essential for future energy systems.