Energy and Reserve Market Designs with Explicit Consideration to Lost Opportunity Costs

Gan, Di; Litvinov, Eugene

doi:10.1109/mper.2002.4311914

Cited by 38 publications

(78 citation statements)

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“…This model optimizes the operation of all generating units to achieve minimum overall system operation costs while maintaining demand-supply balance and meeting frequency response and reserve requirements. As the results clearly suggest that there would be a significant benefit from frequency response support from WPs, a market framework, similar to the inertia market in [31] and compensation schemes for lost opportunity cost in [32], should be developed to provide appropriate compensation to the owners of WPs for the provision of SI and FPR and corresponding opportunity cost. Moreover, as WPs are operated under subsidy schemes, the intersection between the market designs and the subsidy schemes requires further investigation.…”

Section: F Value Of Combined Provision Of Si and Pfr From Wpsmentioning

confidence: 99%

Assessment of the Role and Value of Frequency Response Support From Wind Plants

Teng

Štrbac

2016

IEEE Trans. Sustain. Energy

144

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-High penetration of wind generation causes concerns over frequency stability, as currently wind plants do not provide frequency response support. Extensive research has been conducted to investigate alternative designs of controllers to facilitate the provision of synthetic inertia and primary frequency response from wind plants. However, frequency response support from wind plants differs from that provided by conventional plants and its impact on the system's economic performance is not yet fully understood. In this context, this paper develops a novel methodology to incorporate the frequency response support from wind plants into generation scheduling, thus enabling the benefits of alternative control strategies to be quantified. Studies are carried out on the future Great Britain power system with different wind energy penetration levels and frequency response requirements. The impact of the uncertainty associated with the quantity of wind plants being online and the energy recovery effect are also analysed. The results demonstrate that the benefits of frequency response support from wind plants may be significant, although these are system specific. The proposed model could also inform the development of grid codes, market mechanisms and business cases associated with the frequency response support from wind plants.Index Terms-Wind generation, inertia response, primary frequency response, unit commitment, power system dispatch.

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Section: F Value Of Combined Provision Of Si and Pfr From Wpsmentioning

confidence: 99%

Assessment of the Role and Value of Frequency Response Support From Wind Plants

Teng

Štrbac

2016

IEEE Trans. Sustain. Energy

144

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“…Prices in the Operating Reserve markets then can reflect the cost of providing the service as well as the lost opportunity costs. A lost opportunity cost reflects the fact that if a unit is asked to supply reserves, it may be losing out on profit to supply energy or possibly another reserve service [10] [11]. The lost opportunity cost would normally be given back to the unit in this situation and often will set the Operating Reserve price for all resources supplying the service.…”

Section: Replacement Reserve For Ramping Reservementioning

confidence: 99%

Operating Reserves and Variable Generation

Ela¹,

Milligan²,

Kirby³

2011

318

211

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“…A double-sided auction market dispatch problem (including demand-side bidding and transmission constraints) can be formulated as an optimization model as follows [6], [8], [9]:…”

Section: Spot Pricing Revisited and Problem Formulationmentioning

confidence: 99%

“…The Karush-Kuhn-Tucker (KKT) optimality conditions include (7) (8) (9) and a set of complementary equations is to set the nodal market clearing price at bus to be [6], [8]. Fig.…”

Section: Spot Pricing Revisited and Problem Formulationmentioning

confidence: 99%

Spot Pricing When Lagrange Multipliers Are Not Unique

Feng

Østergaard

2012

IEEE Trans. Power Syst.

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Abstract-Classical spot pricing theory is based on multipliers of the primal problem of an optimal market dispatch, i.e., the solution of the dual problem. However, the dual problem of market dispatch may yield multiple solutions. In these circumstances, spot pricing or any standard pricing practice based on multipliers cannot generate a unique clearing price. Although such situations are rare, they can cause significant uncertainties and complexities in market dispatch. In practice, this situation is solved through simple empirical methods, which may cause additional operations or biased allocation. Based on a strict extension of the principles of spot pricing and surplus allocation, we propose a new pricing methodology that can yield unique, impartial, and robust solution. The new method has been analyzed and compared with other pricing approaches in accordance with spot pricing theory. Case studies support the results of the theoretical analysis, and further demonstrate that the method performs effectively in both uniform-pricing and nodalpricing markets.Index Terms-Double-sided auction, duality, nodal price, spot pricing. NOMENCLATUREThe main notation used throughout the paper is stated next for quick reference. Other symbols are defined as required. A. Indices and NumbersNumber of generators in the system. Number of loads in the system. Number of pricing zones (buses) in the system. Number of MDS buses in the system. Number of non-MDS buses in the system. Number of transmission lines in the system.

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Energy and Reserve Market Designs with Explicit Consideration to Lost Opportunity Costs

Cited by 38 publications

References 0 publications

Assessment of the Role and Value of Frequency Response Support From Wind Plants

Assessment of the Role and Value of Frequency Response Support From Wind Plants

Operating Reserves and Variable Generation

Spot Pricing When Lagrange Multipliers Are Not Unique

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