Simultaneous Energy and Reserve Market Clearing with Consideration of Interruptible Loads as One of Demand Response Resources and Different Reliability Requirements of Consumers

Author:

Najafi Mojtaba,Ahmadi Samaneh,Dashtdar MasoudORCID

Abstract

Abstract Determining the optimal reserve in power systems is closely related to uncertainties in power generation and risks of outage of supply to consumers. Distributed generation sources such as wind farms are usual reasons for uncertainties in MW production. This uncertainty can be alleviated by providing enough reserve in which demand response (DR) programs can play role of resources for reserve. In an electricity market structure, the mentioned points are usually handled by Independent System Operator (ISO) in energy and reserve markets. This paper deals with the problem of reliability-based reserve management. In the mentioned problem, the DR program in the form of interruptible loads is also considered. A new method is proposed in which ISO settle energy and reserve markets simultaneously while employing the DR in the first stage. In addition, consumers’ requirements of reliability are included by assuming that they have possibility to offer their desired levels of reliability to the ISO. The amount of reserve obtained from market settlement is adjusted based on the different reliability requirements of the consumers and different scenarios of the wind farm operation, in the second stage of the proposed method. Also the cost of the reserve adjustment is fairly allocated to producers and consumers. The proposed method applies stochastic programming formulation and its validity is assessed by the GAMS software. Simulation results show that how amount and cost of reserve could be adjusted to cover power balance, cost of power production and load interruption and required reliability of consumers.

Publisher

Walter de Gruyter GmbH

Subject

Energy Engineering and Power Technology

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