TY - JOUR
T1 - Market implications of wind reserve margin
AU - Hedayati-Mehdiabadi, Mojgan
AU - Balasubramanian, Pranavamoorthy
AU - Hedman, Kory
AU - Zhang, Junshan
N1 - Funding Information:
Manuscript received June 18, 2017; revised October 14, 2017 and January 25, 2018; accepted March 1, 2018. Date of publication March 21, 2018; date of current version August 22, 2018. This work was supported by the Power Systems Engineering Research Center. Paper no. TPWRS-00914-2017. (Corresponding author: Mojgan Hedayati-Mehdiabadi.) M. Hedayati-Mehdiabadi is with ABB, Atlanta, GA 30346 USA (e-mail:, mhedayat@asu.edu).
Publisher Copyright:
© 1969-2012 IEEE.
PY - 2018/9
Y1 - 2018/9
N2 - The level of uncertainty, which the power system operators should account for, increases as more renewables are integrated in the system. Additional operating reserves needs to be scheduled within security constrained economic dispatch to ensure reliability. Existing practices rely on conventional generators for providing operational flexibility required to mitigate the uncertainty introduced by renewables. However, with the increased share of renewables in the generation mix, such intermittent resources would be expected to take part in the balancing tasks, too. Providing a reserve margin allows wind generators to hedge against uncertainty. This paper examines the market implications of wind reserve margin policies used to mitigate uncertainty from wind resources. The market implications of the recently proposed optimized reserve margin policy factors are studied. Analysis on the Reliability Test System 1996 shows that reserve margin policy factors along with the proposed compensation scheme help in allocating payments toward renewable resources that present a good quality of service.
AB - The level of uncertainty, which the power system operators should account for, increases as more renewables are integrated in the system. Additional operating reserves needs to be scheduled within security constrained economic dispatch to ensure reliability. Existing practices rely on conventional generators for providing operational flexibility required to mitigate the uncertainty introduced by renewables. However, with the increased share of renewables in the generation mix, such intermittent resources would be expected to take part in the balancing tasks, too. Providing a reserve margin allows wind generators to hedge against uncertainty. This paper examines the market implications of wind reserve margin policies used to mitigate uncertainty from wind resources. The market implications of the recently proposed optimized reserve margin policy factors are studied. Analysis on the Reliability Test System 1996 shows that reserve margin policy factors along with the proposed compensation scheme help in allocating payments toward renewable resources that present a good quality of service.
KW - Electric energy markets
KW - flexibility
KW - power generation dispatch
KW - power system economic assessment
KW - power system reliability
KW - quality of reserve
KW - quality of service
KW - renewable energy
KW - reserve payments
KW - reserve policy
KW - reserve requirements
KW - reserve scheduling
KW - spinning reserve
KW - stochastic optimization
KW - stochastic reserve
KW - uncertainty modeling
KW - wind generation integration
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U2 - 10.1109/TPWRS.2018.2817649
DO - 10.1109/TPWRS.2018.2817649
M3 - Article
AN - SCOPUS:85044306962
SN - 0885-8950
VL - 33
SP - 5161
EP - 5170
JO - IEEE Transactions on Power Systems
JF - IEEE Transactions on Power Systems
IS - 5
M1 - 8320862
ER -