Attribution mechanisms for ancillary service costs induced by variability in power delivery

Francesca Bona; Nicolas Gast; Jean-Yves Le Boudec; Pierre Pinson; Dan-Cristian Tomozei

doi:10.1109/TPWRS.2016.2598760

Attribution mechanisms for ancillary service costs induced by variability in power delivery

Francesca Bona
, Nicolas Gast
, Jean-Yves Le Boudec
, Pierre Pinson
, Dan-Cristian Tomozei

CITIES - Centre for IT-Intelligent Energy Systems

Inria
Swiss Federal Institute of Technology Lausanne
Cisco Systems

Research output: Contribution to journal › Journal article › Research › peer-review

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Abstract

The increased penetration of renewable energy sources in existing power systems has led to necessary developments in electricity market mechanisms. Most importantly, renewable energy generation is increasingly made accountable for deviations between scheduled and actual energy generation. However, there is no mechanism to enforce accountability for the additional costs induced by power fluctuations. These costs are socialized and eventually supported by electricity customers. We propose some metrics for assessing the contribution of all market participants to power regulation needs, as well as an attribution mechanism for fairly redistributing related power regulation costs. We discuss the effect of various metrics used by the attribution mechanisms, and we illustrate, in a game-theoretical framework, their consequences on the strategic behavior of market participants. We also illustrate, by using the case of Western Denmark, how these mechanisms may affect revenues and the various market participants.

Original language	English
Journal	IEEE Transactions on Power Systems
Volume	32
Issue number	3
Pages (from-to)	1891 - 1901
ISSN	0885-8950
DOIs	https://doi.org/10.1109/TPWRS.2016.2598760
Publication status	Published - 2017

Bibliographical note

(c) 2016 IEEE. Personal use of this material is permitted. Permission from IEEE must be obtained for all other users, including reprinting/ republishing this material for advertising or promotional purposes, creating new collective works for resale or redistribution to servers or lists, or reuse of any copyrighted components of this work in other works.

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 7 Affordable and Clean Energy

Keywords

Electricity markets
Ancillary services
Power fluctuations
Attribution mechanisms

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10.1109/TPWRS.2016.2598760

Bonaetal2016Accepted author manuscript, 1.65 MB

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title = "Attribution mechanisms for ancillary service costs induced by variability in power delivery",

abstract = "The increased penetration of renewable energy sources in existing power systems has led to necessary developments in electricity market mechanisms. Most importantly, renewable energy generation is increasingly made accountable for deviations between scheduled and actual energy generation. However, there is no mechanism to enforce accountability for the additional costs induced by power fluctuations. These costs are socialized and eventually supported by electricity customers. We propose some metrics for assessing the contribution of all market participants to power regulation needs, as well as an attribution mechanism for fairly redistributing related power regulation costs. We discuss the effect of various metrics used by the attribution mechanisms, and we illustrate, in a game-theoretical framework, their consequences on the strategic behavior of market participants. We also illustrate, by using the case of Western Denmark, how these mechanisms may affect revenues and the various market participants.",

keywords = "Electricity markets, Ancillary services, Power fluctuations, Attribution mechanisms",

author = "Francesca Bona and Nicolas Gast and \{Le Boudec\}, Jean-Yves and Pierre Pinson and Dan-Cristian Tomozei",

note = "(c) 2016 IEEE. Personal use of this material is permitted. Permission from IEEE must be obtained for all other users, including reprinting/ republishing this material for advertising or promotional purposes, creating new collective works for resale or redistribution to servers or lists, or reuse of any copyrighted components of this work in other works.",

year = "2017",

doi = "10.1109/TPWRS.2016.2598760",

language = "English",

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T1 - Attribution mechanisms for ancillary service costs induced by variability in power delivery

AU - Bona, Francesca

AU - Gast, Nicolas

AU - Le Boudec, Jean-Yves

AU - Pinson, Pierre

AU - Tomozei, Dan-Cristian

N1 - (c) 2016 IEEE. Personal use of this material is permitted. Permission from IEEE must be obtained for all other users, including reprinting/ republishing this material for advertising or promotional purposes, creating new collective works for resale or redistribution to servers or lists, or reuse of any copyrighted components of this work in other works.

PY - 2017

Y1 - 2017

N2 - The increased penetration of renewable energy sources in existing power systems has led to necessary developments in electricity market mechanisms. Most importantly, renewable energy generation is increasingly made accountable for deviations between scheduled and actual energy generation. However, there is no mechanism to enforce accountability for the additional costs induced by power fluctuations. These costs are socialized and eventually supported by electricity customers. We propose some metrics for assessing the contribution of all market participants to power regulation needs, as well as an attribution mechanism for fairly redistributing related power regulation costs. We discuss the effect of various metrics used by the attribution mechanisms, and we illustrate, in a game-theoretical framework, their consequences on the strategic behavior of market participants. We also illustrate, by using the case of Western Denmark, how these mechanisms may affect revenues and the various market participants.

AB - The increased penetration of renewable energy sources in existing power systems has led to necessary developments in electricity market mechanisms. Most importantly, renewable energy generation is increasingly made accountable for deviations between scheduled and actual energy generation. However, there is no mechanism to enforce accountability for the additional costs induced by power fluctuations. These costs are socialized and eventually supported by electricity customers. We propose some metrics for assessing the contribution of all market participants to power regulation needs, as well as an attribution mechanism for fairly redistributing related power regulation costs. We discuss the effect of various metrics used by the attribution mechanisms, and we illustrate, in a game-theoretical framework, their consequences on the strategic behavior of market participants. We also illustrate, by using the case of Western Denmark, how these mechanisms may affect revenues and the various market participants.

KW - Electricity markets

KW - Ancillary services

KW - Power fluctuations

KW - Attribution mechanisms

U2 - 10.1109/TPWRS.2016.2598760

DO - 10.1109/TPWRS.2016.2598760

M3 - Journal article

SN - 0885-8950

VL - 32

SP - 1891

EP - 1901

JO - IEEE Transactions on Power Systems

JF - IEEE Transactions on Power Systems

IS - 3

ER -

Attribution mechanisms for ancillary service costs induced by variability in power delivery

Abstract

Bibliographical note

UN SDGs

Keywords

Access to Document

OpenUrl availability

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Cite this