Spot electricity market design for a power system characterized by high penetration of renewable energy generation

Journal Publication ResearchOnline@JCU
Yang, Jiajia;Dong, Zhao Yang;Wen, Fushuan;Chen, Qixin;Liang, Bomiao
Abstract

The continuous growth of renewable generation in power systems brings serious challenges to electricity markets due to their characteristics different from conventional generation technologies. These challenges come from two dimensions, including short-term (energy and ancillary service markets) and long-term (long-term bilateral and capacity markets) aspects. Under this background, the design of energy and ancillary service markets is studied for power systems with a high penetration level of variable renewable generation. In the proposed spot market mechanism, energy and frequency regulation service (FRS) bids are jointly cleared, where renewable generators are motivated to proactively manage the intermittency and uncertainty of their power outputs. The proposed market mechanism can also ensure the adequacy of FRS capacity for compensating variability of renewables. Besides, in order to ensure the execution of spot market clearing outcomes, this paper established a penalty scheme for mitigating the real-time fluctuations of renewable generation outputs in the spot market. Differences between real-time generation outputs and market clearing outcomes are managed within a certain limit by imposing the designed penalty prices on deviations. Finally, the feasibility and efficiency of the developed market mechanism and algorithms are manifested in the case studies.

Journal

Energy Conversion and Economics

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Volume

2

ISBN/ISSN

2634-1581

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Issue

2

Pages Count

12

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Publisher

John Wiley & Sons

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EISSN

N/A

DOI

10.1049/enc2.12031