Foreword for the Special Section on Wind and Solar Energy: Uncovering and Accommodating Their Impacts on Electricity Markets

Impact of renewable energy forecast imperfections on market-clearing outcomes

“…The optimal day-ahead dispatch (p * i , p * j ) of conventional and stochastic producers is determined by model (1). The optimal dispatch provided by the model follows the least-cost merit-order principle, i.e., clearing the market based on ascending order of energy production marginal prices.…”

“…Capacities of stochastic power production are described by a vector W and the expectation operator is defined by E ω over the scenario set Ω weighted by the probability π ω . In this formulation, stochastic production is constrained by the installed capacity W , instead of the expected generation W that was used in model (1). Moreover, day-ahead scheduling is not fixed, meaning that the dayahead decisions enter the problem as variables.…”

“…However, the production of renewables is characterized by stochasticity and non-dispatchability. Hence, current market designs are highly challenged and novel ones that cope with the inherent renewable uncertainty have to be considered [1]. New market-clearing approaches often assume that access to the correct description of the stochastic process pertaining to renewable energy generation is available.…”