Exploring market properties of policy-based reserve procurement for power systems

Research output: Chapter in Book/Report/Conference proceedingArticle in proceedings – Annual report year: 2019Researchpeer-review

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This paper proposes a market mechanism for co-optimization of energy and reserve procurement in dayahead electricity markets with high shares of renewable energy. The single-stage chance-constrained day-ahead market clearing problem takes uncertain wind in-feed into account, resulting in optimal day-ahead dispatch schedule and an affine participation policy for generators for the real-time reserve provision. Under certain assumptions, the chance-constrained market clearing is reformulated as a quadratic program. Using tools from equilibrium modeling and variational inequalities, we explore the existence and uniqueness of a Nash equilibrium. Under the assumption of perfect competition in the market, we evaluate the satisfaction of desirable market properties, namely cost recovery, revenue adequacy, market efficiency, and incentive compatibility. To illustrate the effectiveness of the proposed market clearing, it is benchmarked against a deterministic cooptimization of energy and reserve procurement. Biased and unbiased out-of-sample simulation results for a power systems test case highlight that the proposed market clearing results in lower expected system operations cost than the deterministic benchmark, without the loss of any desirable market properties.
Original languageEnglish
Title of host publicationProceedings of 58th IEEE Conference on Decision and Control
Number of pages7
PublisherIEEE
Publication statusAccepted/In press - 2019
Event58th IEEE Conference on Decision and Control - Palais des Congrès et des Expositions Nice Acropolis, Nice, France
Duration: 11 Dec 201913 Dec 2019
https://cdc2019.ieeecss.org/

Conference

Conference58th IEEE Conference on Decision and Control
LocationPalais des Congrès et des Expositions Nice Acropolis
CountryFrance
CityNice
Period11/12/201913/12/2019
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