2022/10/06 by Daniel Shen, Shen, Daniel, Marija Ilić +1
Economics, Econometrics and Finance · Engineering · #Capital Investment and Risk Analysis #Electric Power System Optimization #Energy Load and Power Forecasting #FOS: Electrical engineering #Systems and Control (eess.SY) #electronic engineering #information engineering
paper · pdf · doi:10.48550/arxiv.2210.02963
openalex publication_date 2022/10/06 · openalex created_date 2025/10/10 · openalex updated_date 2026/08/01
The increasing integration of variable renewable energy sources such as wind and solar will require new methods of managing generation uncertainty. Existing practices of uncertainty management for these resources largely focuses around modifying the energy offers of such resources in the quantity domain and from a centralized system operator consideration of these uncertainties. This paper proposes an approach to instead consider these uncertainties in the price domain, where more uncertain power is offered at a higher price instead of restricting the quantity offered. We demonstrate system-level impacts on a modified version of the RTS-GMLC system where wind generators create market offers valuing their uncertainties over scenario set of day-ahead production forecasts. The results are compared with a dispatch method in which wind energy is offered at zero marginal price and restricted based on the forecast percentile.