Electricity Prices and Value of Flexible Generation in Northern Europe in 2030

The aim of this paper is to quantify the value of flexible power generation technologies in Northern Europe in 2030, and in particular hydropower with storage. Two scenarios for the European power system in 2030 are presented. The study uses a fundamental hydrothermal power system model for the combined North-and West-European power system. The model gives optimal operation of the system, including operation strategies for individual hydro reservoirs, dispatch of power plants and simulated power prices. The results show power generation, income and realized power prices for a selection of hydropower and gas power plants, as well as wind and solar power. It is demonstrated that the value of flexible power generation increases with increasing shares of variable renewables in the power system, even if the average prices are reduced.