How Does Large-scale Wind Power Generation Affect Energy and Reserve Prices?

Document Type : Research paper

Authors

1 Electrical Engineering Faculty of Engineering Ferdowsi University of Mashhad

2 Department of Electrical Engineering, Ferdowsi University of Mashhad, Mashhad, Iran

Abstract

Intermittent nature of wind power faced ISO and power producers with new challenges. Wind power uncertainty has increased the required reserve capacity and deployment reserve. Consequently, large-scale wind power generation increases ISO costs and consequently reserve prices. On the other hand, since wind power producers are price taker, large-scale wind power generation decreases residual demand and consequently decreases energy and reserve prices. In this paper, impacts of large-scale wind power generation on energy and reserve markets are studied. To this end, we need to know bids of power producers. But, bids of power producers are unknown and changes if wind power penetration is varied. To overcome this problem, first equilibrium of day-ahead energy market is computed at the presence of large-scale wind power generation considering hour-ahead deployment reserve market scenarios. Then, equilibrium of hour-ahead reserve market is computed considering results of day-ahead market. Finally, impacts of large-scale wind power generation on energy and reserve markets are studied at the markets equilibria. The presented model is applied to an 18-unit power system and the results are analyzed.

Keywords

Main Subjects

References

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Journal of Operation and Automation in Power Engineering
Volume 6, Issue 2
December 2018
Pages 169-182

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History

  • Receive Date: 30 December 2017
  • Revise Date: 26 January 2018
  • Accept Date: 15 February 2018

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