Ancillary services in systems with high penetrations of renewable energy sources, the case of ramping

Lamadrid, Alberto J.; Mount, Timothy D.

doi:10.1016/j.eneco.2012.08.011

Cited by 50 publications

(23 citation statements)

References 20 publications

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“…The theoretical underpinnings of our model are common to the previous related literature, with the main distinctive feature of determining reserves endogenously using co-optimization [13]. For this paper we start from the formulation included in [14]. The reserves are determined according to the possible operation modes of the system.…”

Section: Literaturementioning

confidence: 98%

How to remunerate ramping services?

Lamadrid

Mount

2013

2013 IEEE Power &Amp; Energy Society General Meeting

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This paper studies the optimal procurement of ramping reserves and the comparison of the timing of compensation between real time versus day ahead reserve payments for ramping. We develop the extension of a model that considers a two settlement market in which ramping reserves are determined using a stochastic program. We compare different alternatives for compensation (e.g. paying opportunity cost to limit the speculation in the market, or difference between nodal prices and offers made) As per economic theory, mechanisms like the first one provide proper incentives. In the meantime, the second compensation above suggested may lead to too much speculation and fewer reserves that may render the system n − 1 not secure. We recommend to use pre-payment of reserves, mainly due to the issues that arise in determining a fair compensation for real time settlement due to the non-linearities of the system.

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Section: Literaturementioning

confidence: 98%

How to remunerate ramping services?

Lamadrid

Mount

2013

2013 IEEE Power &Amp; Energy Society General Meeting

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“…Sudden ramping of wind power output, in either direction, can have a substantial effect on the amount of electricity generated and the types and amounts of generating units required to mitigate its variability [17]. Increased cycling of existing generation can also increase wear on units, shorten their lifespans and increase the costs of maintenance [18].…”

Section: Introductionmentioning

confidence: 99%

Increasing thermal plant flexibility in a high renewables power system

2015

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“…The main differences between our approach and other approaches can be summarized by the following four points (i) energy and two kinds of ancillary services (contingency and load-following reserves) are co-optimized by solving for the optimal amounts of reserves endogenously as part of the solution set [18], (ii) the cost of ramping delivered is internalized by assigning a wear-and-tear cost to changes in the dispatch of individual generating units [19], (iii) demand and supply costs are treated symmetrically by pricing Load Not Served (LNS) at the Value Of Lost Load (VOLL), and (iv) Energy Storage Systems (ESS) are modeled as a special set of generators with transversality conditions that value the endof-horizon states and allow ESS to provide both load shifting and ramping services. These characteristics are especially important when the uncertainty of the stochastic sources of generation is large [20]. Basically, greater uncertainty leads to higher costs with more generating capacity being committed to maintain system reliability.…”

Section: Formulation Of the Modelmentioning

confidence: 99%

The Case for a Simple Two-Sided Electricity Market

Lamadrid

Jeon

Hao

et al. 2017

Proceedings of the 50th Hawaii International Conference on System Sciences (2017)

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Abstract-This paper builds on the results from our earlier research on the design of electricity markets that have to accommodate the uncertainty associated with high penetrations of renewable sources of energy. The key results show that 1) distributed storage (deferrable demand) is an effective way to reduce total system costs, 2) a simple market structure for energy allows aggregators to meet their customers' energy needs and provide ramping services to the system operator, and 3) using a receding-horizon optimization to dispatch units for the next market time-step benefits from the availability of more accurate forecasts of renewable generation and allows market participants to adjust their bids and offers in response to this new information. In our two-sided market, distributed storage in the form of deferrable demand is controlled locally by independent aggregators to minimize their expected payments for energy in the wholesale market, subject to meeting the energy needs of their customers. In addition, these aggregators are responsible for maintaining a stable power factor by installing local capabilities that automatically deal with local power imbalances. Failure to do this triggers penalties paid to the system operator.Our earlier results have shown that it is optimal for an aggregator to submit demand bids into a day-ahead market that include threshold prices for charging and discharging storage and also ensure that the expected amount of stored energy is consistent with the capacity limits of their storage. Because departures from the expected daily pattern of renewable generation are generally persistent (highly positive serial correlated), it is likely that the system operator determines an optimum pattern of demand for the aggregator that violates the capacity limits of storage by the end of the 24-hour period. If the market uses a receding horizon, the results in this paper show that aggregators can modify their bids to ensure that the capacity limits of storage are never violated in the next market time-step.In an empirical application, a stochastic form of multi-period security constrained unit commitment with optimal power flow (the MATPOWER Optimal Scheduling Tool, MOST) using a receding-horizon optimization determines the optimum dispatch and reserves for the next hour and forecasts of the nodal prices for the next 24 hours. The results show that locally controlled deferrable demand is almost as effective as centrally controlled deferrable demand as a way to reduce system costs and mitigate the variability of renewable generation. The additional advantage from using a receding horizon is that the system operator always charges/discharges the storage managed locally by aggregators within the capacity constraints of the storage.

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Ancillary services in systems with high penetrations of renewable energy sources, the case of ramping

Cited by 50 publications

References 20 publications

How to remunerate ramping services?

How to remunerate ramping services?

Increasing thermal plant flexibility in a high renewables power system

The Case for a Simple Two-Sided Electricity Market

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