An oligopolistic model considering the locational SR requirement for joint energy‐reserve market

Abstract

To ensure the delivery of spinning reserve (SR) under predicted contingency conditions, zone-based SR procurement mechanism should be taken into account in practice. An oligopolistic model considering locational SR requirement in joint energy and SR market is proposed in this paper. Every pre-defined SR zone has its own SR requirement, and the relevant SR could be procured not only from the locational generators, but also from the generation resources outside this locational SR area via the tie line interface. Each GenCo is assumed to manipulate the energy price by means of the conjectured supply function; and the coupling effect between energy price and SR price is also analyzed. A 6-bus system and the IEEE 30-bus system are simulated to validate the proposed model; the test results show that the locational SR requirement could make the SR distribution more rational, while demand surplus may decrease due to less energy supply in the locational SR area. Besides, the zonal SR price in the oligopolistic market is usually less than that in the competitive market.

Joint energy and reserve markets: Current implementations and modeling trends

“…For simplicity, the majority of works deal with a unique reserve product. Some authors do not explicit the type of reserve considered (see [41][42][43][44][45][46][47][48][49]), whereas others refer to spinning reserve (see [14,[37][38][39][50][51][52][53][54][55][56][57][58][59][60][61][62][63]).…”

A new approach to locational pricing and settlement of day-ahead spinning reserve market

“…In deterministic approaches [2][3][4][5][6], the SR capacity is often predefined and equal to a specific percentage of the hourly system loads, or capacity of the largest online generator. Prior to clearing, the required SR determination is of great importance and can affect significantly the energy and SR markets scheduling.…”

“…Prior to clearing, the required SR determination is of great importance and can affect significantly the energy and SR markets scheduling. In [2][3][4][5][6][7], the ISO merely minimizes the SR procurement cost to meet the predefined SR capacity using the available SR resources. In deterministic approaches [2][3][4][5][6], the SR capacity is often predefined and equal to a specific percentage of the hourly system loads, or capacity of the largest online generator.…”

“…The ISO generally determines the required SR based on deterministic or probabilistic approaches and thereinafter procures the estimated SR from SR market. In deterministic approaches [2][3][4][5][6], the SR capacity is often predefined and equal to a specific percentage of the hourly system loads, or capacity of the largest online generator. Unlike conventional Unit Commitment approaches, where the reserve level is fixed from operating experiences, in [7], the reserve level acts as a decision variable that controls the robustness of Unit Commitment decisions.…”

“…Unlike conventional Unit Commitment approaches, where the reserve level is fixed from operating experiences, in [7], the reserve level acts as a decision variable that controls the robustness of Unit Commitment decisions. In [2][3][4][5][6][7], the ISO merely minimizes the SR procurement cost to meet the predefined SR capacity using the available SR resources. In deterministic approaches, the stochastic nature of the power system is ignored and so the market clearing solution would be generally suboptimal.…”