The Benefits of a Hybrid Wind-PV Power Plant at Competitive Wholesale Electricity Market – Case Finland

This study investigates the economic benefits of investing in a hybrid wind-PV power plant in the Nordic electricity market. The study analyzes recent Finnish electricity market data and estimated wind and PV production profiles utilizing the MERRA-2 data set. In addition, the study analyses the investment decisions made into a fully competitive electricity market without renewable energy subsidies. Moreover, the study analyzes value creation utilizing power purchase agreements (PPA) including pay as produced PPA, the most beneficial to the producer, and base load PPAs which are the most beneficial for the buyer. The results indicate that PPAs benefit producers by hedging the revenue from the volatile wholesale electricity market. However, relatively high PPA prices are required for positive return on investments which might reduce the willingness of the consumers to agree to such PPAs. Furthermore, the study investigated the economic benefits of a battery energy storage system (BESS) investment and operation integrated with the wind-PV power plant. The battery operation was optimized to maximize profits in the electricity spot market and the economically most suitable size was calculated for the system. The study also optimized the economically optimal size of the power plant grid connection.