2018/05/12 by Vladimir Dvorkin, Dvorkin, Vladimir, Stefanos Delikaraoglou +3
Engineering · #Electric Power System Optimization #FOS: Mathematics #Optimization and Control (math.OC) #Smart Grid Energy Management
paper · pdf · doi:10.48550/arxiv.1805.04712
openalex publication_date 2018/05/12 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28
This paper deals with the problem of clearing sequential electricity markets\nunder uncertainty. We consider the European approach, where reserves are traded\nseparately from energy to meet exogenous reserve requirements. Recently pro-\nposed stochastic dispatch models that co-optimize these services provide the\nmost efficient solution in terms of expected operating costs by computing\nreserve needs endogenously. However, these models are incompatible with\nexisting market designs. This paper proposes a new method to compute reserve\nrequirements that bring the outcome of sequential markets closer to the\nstochastic energy and reserves co-optimization in terms of cost efficiency. Our\nmethod is based on a stochastic bilevel program that implicitly improves the\ninter-temporal coordination of energy and reserve markets, but remains\ncompatible with the European market design. We use two standard IEEE\nreliability test cases to illustrate the benefit of intelligently setting\noperating reserves in single and multiple reserve control zones.\n