2018/02/05 by Ashkan Zeinalzadeh, Zeinalzadeh, Ashkan, Donya Ghavidel +3
Economics, Econometrics and Finance · Engineering · #Applications (stat.AP) #Capital Investment and Risk Analysis #Electric Power System Optimization #Energy Load and Power Forecasting #FOS: Computer and information sciences #FOS: Electrical engineering #Smart Grid Energy Management #Systems and Control (eess.SY) #electronic engineering #information engineering
paper · pdf · doi:10.48550/arxiv.1802.08286
openalex publication_date 2018/02/05 · openalex created_date 2022/10/04 · openalex updated_date 2026/07/28
The intermittent nature of the renewable energies increases the operation\ncosts of conventional generators. As the share of energy supplied by renewable\nsources increases, these costs also increase. In this paper, we quantify these\ncosts by developing a market clearing price of energy in the presence of\nrenewable energy and congestion constraints. We consider an electricity market\nwhere generators propose their asking price per unit of energy to an\nindependent system operator (ISO). The ISO solve an optimization problem to\ndispatch energy from each generator to minimize the total cost of energy\npurchased on behalf of the consumers.\n To ensure that the generators are able to meet the load within a desired\nconfidence level, we incorporate the notion of load variance using the\nConditional Value-at-Risk (CVAR) measure in an electricity market and we derive\nthe amount of committed power and market clearing price of energy as a function\nof CVAR. It is shown that a higher penetration of renewable energies may\nincrease the committed power, market clearing price of energy and consumer cost\nof energy due to renewable generation uncertainties. We also obtain an\nupper-bound on the amount that congestion constraints can affect the committed\npower. We present descriptive simulations to illustrate the impact of renewable\nenergy penetration and reliability levels on committed power by the\nnon-renewable generators, difference between the dispatched and committed\npower, market price of energy and profit of renewable and non-renewable\ngenerators.\n