Prescribing net demand for electricity market clearing

08/02/2021
by   Juan M. Morales, et al.
0

We consider a two-stage electricity market comprising a forward and a real-time settlement. The former pre-dispatches the power system following a least-cost merit order and facing an uncertain net demand, while the latter copes with the plausible deviations with respect to the forward schedule by making use of power regulation during the actual operation of the system. Standard industry practice deals with the uncertain net demand in the forward stage by replacing it with a good estimate of its conditional expectation (usually referred to as a point forecast), so as to minimize the need for power regulation in real time. However, it is well known that the cost structure of a power system is highly asymmetric and dependent on its operating point, with the result that minimizing the amount of power imbalances is not necessarily aligned with minimizing operating costs. In this paper, we propose a mixed-integer program to construct, from the available historical data, an alternative estimate of the net demand that accounts for the power system's cost asymmetry. Furthermore, to accommodate the strong dependence of this cost on the power system's operating point, we use clustering to tailor the proposed estimate to the foreseen net-demand regime. By way of an illustrative example and a more realistic case study based on the European power system, we show that our approach leads to substantial cost savings compared to the customary way of doing.

READ FULL TEXT

page 1

page 2

page 3

page 4

research
09/02/2019

A Two-Stage Market Mechanism for Electricity with Renewable Generation

We consider a two stage market mechanism for trading electricity includi...
research
07/11/2014

Charge Scheduling of an Energy Storage System under Time-of-use Pricing and a Demand Charge

A real-coded genetic algorithm is used to schedule the charging of an en...
research
07/13/2022

On Market Clearing of Day Ahead Auctions for European Power Markets: Cost Minimisation versus Social Welfare Maximisation

For the case of inflexible demand and considering network constraints, w...
research
07/20/2022

Operating Envelopes under Probabilistic Electricity Demand and Solar Generation Forecasts

The increasing penetration of distributed energy resources in low-voltag...
research
11/03/2017

Cost-Optimal Operation of Energy Storage Units: Impact of Uncertainties and Robust Estimator

The rapid expansion of wind and solar energy leads to an increasing vola...
research
11/14/2022

Additive Covariance Matrix Models: Modelling Regional Electricity Net-Demand in Great Britain

Forecasts of regional electricity net-demand, consumption minus embedded...

Please sign up or login with your details

Forgot password? Click here to reset