Participation of wind power producers in day‐ahead and balancing markets: An overview and a simulation‐based study

Algarvio, Hugo; Lopes, Fernando; Couto, António; Estanqueiro, Ana

doi:10.1002/wene.343

Cited by 31 publications

(40 citation statements)

References 32 publications

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“…The results obtained demonstrate that NWP data availability determines the wind power forecast accuracy in the day-ahead market. In [6], by using a case study where wind parks are allowed to participate in the Portuguese tertiary reserve, the authors concluded that changing the market time unit from 1 h to 15 min reduces their imbalances about 10%. Thus, schedule updates as close as possible to real-time operation may strongly reduce the effect of forecast errors.…”

Section: The Role Of Wind Power Forecast In Day-ahead and Balancing Mmentioning

confidence: 99%

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Changing the Day-Ahead Gate Closure to Wind Power Integration: A Simulation-Based Study

et al. 2019

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Currently, in most European electricity markets, power bids are based on forecasts performed 12 to 36 hours ahead. Actual wind power forecast systems still lead to large errors, which may strongly impact electricity market outcomes. Accordingly, this article analyzes the impact of the wind power forecast uncertainty and the change of the day-ahead market gate closure on both the market-clearing prices and the outcomes of the balancing market. To this end, it presents a simulation-based study conducted with the help of an agent-based tool, called MATREM. The results support the following conclusion: a change in the gate closure to a time closer to real-time operation is beneficial to market participants and the energy system generally.

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Section: The Role Of Wind Power Forecast In Day-ahead and Balancing Mmentioning

confidence: 99%

“…These characteristics have a strong influence on the outcomes of energy markets, reducing market-clearing prices [3]. Accordingly, existing market designs should be analyzed to determine if they are still efficient to deal with high levels of VRE (see, e.g., [4][5][6]).…”

Section: Introductionmentioning

confidence: 99%

Changing the Day-Ahead Gate Closure to Wind Power Integration: A Simulation-Based Study

et al. 2019

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“…As noted earlier, the work published in [11] analysed the benefits of the participation of wind power producers in balancing markets at both economic and technical levels. We found that a reduction of the market time unit from 1 h to 15 min is beneficial to WPPs.…”

Section: Renewable Power Band Marketplacementioning

confidence: 99%

“…The simulations are performed with the help of the agent-based tool called MATREM (see [9,10]). Six key performance indicators (KPIs) are considered, namely the value of wind energy to the market, the global imbalances of the system, the imbalances and costs of WPPs and retailers, and the total cost of the system.The work presented here builds on our previous work in the areas of trading wind power in markets [11,12] and portfolio optimization of retailers [13]. Specifically, in [11], we investigated the benefits of the participation of WPPs in BMs at both economic and technical levels.…”

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confidence: 99%

Variable Renewable Energy and Market Design: New Products and a Real-World Study

et al. 2019

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Most existing energy markets (EMs) were not designed to take into account an active participation of variable renewable energy (VRE). This situation results typically in imbalances and substantial costs in balancing markets. Such costs are reflected both in the energy and the VRE parts of the consumer tariffs. Both appropriate market products and new elements of market design may largely facilitate the large-scale integration of VRE in EMs. Accordingly, this article presents a new bilateral energy contract and introduces two new marketplaces that can contribute to reduce the imbalances resulting from VRE producers. It also presents a study conducted with the help of an agent-based tool, called MATREM. The results indicate a significant decrease in the imbalances and the associated costs. Energies 2019, 12, 4576 2 of 17To address the issues associated with the participation of VRE producers in markets, adaptations to the current market structure as well as new elements of market design have been proposed by theorists and practitioners working on the area of competitive energy markets. For instance, the International Energy Agency points out that the physical transactions of electrical energy in power systems with high shares of VRE need to be made by considering auctions and centralized pools, and should not take into account feed-in-tariffs or other supporting schemes. The process of trading energy also needs to be improved by defining the terms of the transactions up to 30 min before real-time operation with an interval up to 10 min [6]. This near real-time negotiation is also supported by the Clean Energy Package (Article 7), published by the European Commission [7]. In this package, a new proposal for regulating the Internal Market for Electricity is presented, with the main goals of stimulating the global leadership of Europe in renewables, harmonizing markets rules, supporting the integration of VRE, and increasing the general welfare of consumers (see [8] for a complete overview). Article 6 of the new proposal indicates that market operators should develop new products to accommodate the increasing levels of VRE and support demand-response programs. Now, generally speaking, European markets typically allow bidding up to 5 to 30 min before real-time operation, contributing to reduce the imbalances resulting from VRE producers. The markets of North-America and Australia present some additional flexibility by including 5-min real-time (sub-)markets. Despite this, most real-world markets operate by considering power (MW) and not energy (MWh), thus allowing to some extent substantial deviations of VRE producers.Against this background, this article presents a new bilateral energy contract, called short-term energy (STE) contract, and introduces two new marketplaces that may allow to reduce the imbalances resulting from VRE producers (we note that throughout the article the terms "new marketplace" and "new market product" will be used interchangeably). The main aim is to enable an active and competitive participa...

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“…However, the increasing levels of variable renewable energy, such as solar and wind power (WP), are raising some difficulties to energy markets (see, e.g., [1]). VRE depends on meteorological conditions, meaning that it is not dispatchable (but see [2]).…”

Section: Introductionmentioning

confidence: 99%

Hydro-Wind Balance in Daily Electricity Markets: A Case-Study

Algarvio

Lopes

Santana

2019

Communications in Computer and Information Science

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The European Union has been one of the major drivers of the development of renewable energy. In Portugal, renewable generation is subject to specific licensing requirements and benefits from a feedin-tariff. This paper pays special attention to wind and hydroelectric technologies. Typically, wind farms produce more energy during the night (off-peak periods), when the demand is lower, contributing to a reduction of the market price. Hydroelectric power plants use off-peak periods to pump water, and produce energy in the periods of a 24 hour day where the prices of electricity are higher (peak periods). This paper presents a case study aiming at analyzing the behavior of hydroelectric power producers-that is, in power systems with large renewable generation, producers typically use the periods of the day with lower energy prices for pumping, and the other periods (with higher energy prices) to produce electricity. The simulations are performed using MATREM (for Multi-Agent Trading in Electricity Markets). The results confirm (and rebate) the typical behavior of hydroelectric power producers.

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Participation of wind power producers in day‐ahead and balancing markets: An overview and a simulation‐based study

Cited by 31 publications

References 32 publications

Changing the Day-Ahead Gate Closure to Wind Power Integration: A Simulation-Based Study

Changing the Day-Ahead Gate Closure to Wind Power Integration: A Simulation-Based Study

Variable Renewable Energy and Market Design: New Products and a Real-World Study

Hydro-Wind Balance in Daily Electricity Markets: A Case-Study

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