Conditions for Ramp Rates Causing Uplift

Shaobo Zhang, Kory W. Hedman

Research output: Chapter in Book/Report/Conference proceedingConference contribution

1 Scopus citations

Abstract

The increasing penetration of renewable energy leads to more demand for ramping capabilities. As a result, the ramp rate constraints of generators are binding more often than before. Ramp rate constraints cause uplift in some market designs, which distorts the price signal. This paper studies the relationship between ramp rate constraints and uplift from two aspects: market design and the convexity of ramp rate constraints. The market designs compared are real-time market with single-period model and price clearing, multi-interval realtime market (MIRTM) with only the first interval financially binding, and MIRTM with all intervals financially binding. Using a simplified multi-interval economic dispatch model, it was proved that with the last market design, constant ramp rates neither cause lost opportunity cost nor make-whole payments. It was shown that dispatch-dependent ramp rates could cause uplift with a numerical example.

Original languageEnglish (US)
Title of host publication51st North American Power Symposium, NAPS 2019
PublisherInstitute of Electrical and Electronics Engineers Inc.
ISBN (Electronic)9781728104072
DOIs
StatePublished - Oct 2019
Event51st North American Power Symposium, NAPS 2019 - Wichita, United States
Duration: Oct 13 2019Oct 15 2019

Publication series

Name51st North American Power Symposium, NAPS 2019

Conference

Conference51st North American Power Symposium, NAPS 2019
Country/TerritoryUnited States
CityWichita
Period10/13/1910/15/19

Keywords

  • lost opportunity cost
  • make-whole payments
  • multi-interval real-time market
  • ramp rate
  • uplift payments

ASJC Scopus subject areas

  • Computer Networks and Communications
  • Hardware and Architecture
  • Energy Engineering and Power Technology
  • Electrical and Electronic Engineering
  • Safety, Risk, Reliability and Quality

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