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

[1].     Wind Europe Business Intelligence, “Wind in power 2016 European statistics,” Published in February 2017. Available at :https://windeurope.org/wp-content/uploads-/files/about-wind/statistics/WindEurope-Annual Statisti-cs-2016.pdf [Accessed: 20 Jan. 2018]
[2].     E. Heydarian-Forushani and H. Aalami, “Multi-objective scheduling of utility-scale energy storages and demand response programs portfolio for grid integration of wind power,” J. Oper. Autom. Power Eng., vol. 4, no. 2, pp. 104-116, 2016.
[3].     I. Umbrasko, R. Varfolomejeva, and A. Mahnitko, “Modeling of the generating company behavior in energy and reserve market”, Proc. 11th Int. Conf. Environ.  Electr. Eng., Venice, 2012, pp. 1070-1074.
[4].     E. Du et al., “Managing wind power uncertainty through strategic reserve purchasing,” IEEE Trans. Power Syst., vol. 32, no. 4, pp. 2547-2559, 2017.
[5].   J. Liang, S. Grijalva, and R. G. Harley, “Increased wind revenue and system security by trading wind power in energy and regulation reserve markets,” IEEE Trans. Sustainable Energy, vol. 2, no. 3, pp. 340-347, 2011.
[6].     T. Soares, P. Pinson, T. V. Jensen and H. Morais, “Optimal offering strategies for wind power in energy and primary reserve markets,” IEEE Trans. Sustainable Energy, vol. 7, no. 3, pp. 1036-1045, 2016.
[7].     B. Zhang, R. Johari, and R. Rajagopal, “Competition and coalition formation of renewable power producers,” IEEE Trans. Power Syst., vol. 30, no. 3, pp. 1624-1632, 2015.
[8].     M. O. Buygi, H. Zareipour, and W. D. Rosehart, “Impacts of large-scale integration of intermittent resources on electricity markets: a supply function equilibrium approach,” IEEE Syst.  J., vol. 6, no. 2, pp. 220-232, 2012.
[9].     C. Peng, S. Lei, Y. Hou and F. Wu, “Uncertainty management in power system operation,” CSEE J. Power Energy Syst., vol. 1, no. 1, pp. 28-35, 2015.
[10].  H. H. Zeineldin, T. h. m. El-Fouly, E. f. El-Saadany and M. M. A. Salama, “Impact of wind farm integration on electricity market prices,” IET Renewable Power Gener., vol. 3, no. 1, pp. 84-95, 2009.
[11].  J. M. Morales, A. J. Conejo and J. Perez-Ruiz, “Economic valuation of reserves in power systems with high penetration of wind power,” IEEE Trans. Power Syst., vol. 24, no. 2, pp. 900-910, 2009.
[12].  A. Shahmohammadi, R. Sioshansi, A. J. Conejo, S. Afsharnia, “Market equilibria and interactions between strategic generation, wind, and storage,” Appl. Energy, 2017.
[13].  M. Banaei, M. Oloomi Buygi and H. Zareipour, “Impacts of strategic bidding of wind power producers on electricity markets,” IEEE Trans. Power Syst., vol. 31, no. 6, pp. 4544-4553, 2016.
[14].  M. Banaei, M. Oloomi Buygi, S. M. Zabetian-Hosseini, “Strategic gaming of wind power producers joined with thermal units in electricity markets,” Renewable Energy, vol. 115, pp. 1067-1074, 2018.
[15].  S. J. Kazempour and H. Zareipour, "Equilibria in an oligopolistic market with wind power production," IEEE Trans. Power Syst., vol. 29, no. 2, pp. 686-697, 2014.
[16].  Energinet,” New record-breaking year for Danish wind power,” Published 15.1.2016 12.10. Available at: https://en.energinet.dk/About-our news/News/ 2017/04-/25/New-record-breaking-year-for-Danish-wind-power ml.[Accessed: 20 Jan. 2018]
[17].  Clean Energy Wire CLEW,” Renewables cover about 100% of German power use for first time ever,” Available at: https://www.cleanenergywire.org/news/renewables-cover-about-100-german-power-use-first-time-ever. [Accessed: 05 Jan. 2018]
[18].  B. F. Hobbs, C. B. Metzler, and J. S. Pang, “Strategic gaming analysis for electric power systems: An MPEC approach,” IEEE Trans. Power Syst., vol. 15, no. 2, pp. 638-645, 2000.
[19].  S. Fink, J. Rogers, K. Porter ” Wind Power and Electricity Markets,” Utility wind integration group. north american electric reliability corporation (NERC). 2009. Available at: www.nerc.com/docs/pc/ivgtf/WindinMarketsTableA-ug0 9(2-4Task_Force).pdf. [Accessed: 20  Jan. 2018]
[20].  O. A. Jaramillo and M. A. Borja, “Wind speed analysis in La Ventosa, Mexico: a bimodal probability distribution case,” Renewable Energy, vol. 29, pp. 1613-1630, 2004.
[21].  J. A. Carta [Carta, 2007 #57]and D. Mentado, “A continuous bivariate model for wind power density and wind turbine energy output estimations,” Energy Convers. Manage., vol. 48, pp. 420-432, 2007
[22].  M. A. Ortega-Vazquez and D. S. Kirschen, “Estimating the spinning reserve requirements in systems with significant wind power generation penetration,” IEEE Trans. Power Syst., vol. 24, no. 1, pp. 114-124, 2009.
[23].  F. Bouffard and F. D. Galiana, “Stochastic security for operations planning with significant wind power generation,” Proc. IEEE Power Energy Soc. Gen. Meeting-Convers. Deliv. Electr. Energy in the 21st Century, pp. 1-11, 2008.
[24].  K. Methaprayoon, C. Yingvivatanapong, W. J. Lee and J. R. Liao, “An integration of ANN wind power estimation in to unit commitment considering the forecasting uncertainty,” IEEE Trans. Ind. Appl., vol. 43, no. 6, pp. 1441-1448, 2007.
[25].  B. C. Ummels, M. Gibescu, E. Pelgrum, W. L. Kling, and A. J. Brand, “Impacts of wind power on thermal generation unit commitment and dispatch,” IEEE Trans. Energy Convers., vol. 22, pp. 44-51, 2007.
[26].  A. Fabbri, T. G. S. Roman, J. R. Abbad and V. H. M. Quezada, “Assessment of the cost associated with wind generation prediction errors in a liberalized electricity market,” IEEE Trans. Power Syst., vol. 20, no. 3, pp. 1440-1446, 2005.
[27].  S. M. Mousavi-Agah, D. Flynn, “Impact of modelling non-normality and stochastic dependence of variables on operating reserve determination of power systems with high penetration of wind power,” Int. J. Electr. Power Energy Syst., vol. 97, pp. 146-154, 2017.
[28].  B. M. Hodge, D. Lew, M. Milligan, H. Holttinen, S. Sillanpää and D.Flynn, “Wind power forecasting error distributions: An international comparison,” Proc. 11th Annu. Int. Work. Large-Scale Integr. Wind Power Syst. Transm. Net. Offshore Wind Power Plants Conf., 2012.
[29].  R. Doherty, M. O'Malley, “A new approach to quantify reserve demand in systems with significant installed wind capacity,” IEEE Trans. Power Syst., vol. 20, no. 2, pp. 587-595, 2005.
[30].  A. Najafi, R. Aboli, H. Falaghi, and M. Ramezani, “Capacitor placement in distorted distribution network subject to wind and load uncertainty,” J. Oper. Autom. Power Eng., vol. 4, no. 2, pp. 153-164, 2016.
Journal of Operation and Automation in Power Engineering
Volume 6, Issue 2
December 2018
Pages 169-182

Files

History

  • Receive Date: 30 December 2017
  • Revise Date: 26 January 2018
  • Accept Date: 15 February 2018
  • First Publish Date: 01 December 2018

Share

How to cite

Statistics