Nordic Balancing Markets: Overview of Market Rules

Khodadadi, Abolfazl; Herre, Lars; Shinde, Priyanka; Eriksson, Robert; Söder, Lennart; Amelin, Mikael

doi:10.1109/eem49802.2020.9221992

Cited by 23 publications

(7 citation statements)

References 4 publications

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“…The transmission system operators (TSOs) keep the power network within its secure limits to ensure the security of supply at all times. The green transition toward a climate-neutral, secure, and integrated energy system, as the main vision of the most European TSOs [1], requires the new electricity-market designs for managing arising transmission-network related challenges [2], [3]. Flexibility service providers play an important role for a successful green transition and the hydropower plants (HPPs) have considerable benefit in providing flexibility services (such as ramp-rate and frequency-regulation services).…”

Section: A Motivationmentioning

confidence: 99%

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Multimarket Trading Strategy of a Hydropower Producer Considering Active-Time Duration: A Distributional Regression Approach

Khodadadi

Hesamzadeh

Söder

2023

IEEE Systems Journal

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This article presents a new approach for finding the optimal multimarket trading strategy of cascaded hydropower plants (HPPs) in the sequential electricity markets. These markets are day-ahead energy market, the market for frequency containment reserve in normal mode (FCR-N), and manual frequency restoration reserve markets for both energy production and capacity reserve. The active-time duration (ATD) of an mFRR energy offer is an important required parameter and it is uncertain at the time of day-ahead offer-function submission. Hence, we suggest a distributional regression approach for ATD modeling in an optimal multimarket setup. Also, a modified machine learning approach is proposed to generate price scenarios for the mFRR energy market taking into account uncertain ATD parameters. To illustrate our proposed approach, various numerical experiments are performed. Our numerical results show how proper modeling of ATD parameters can lead to a more realistic multimarket offer-function for cascaded HPPs. Furthermore, the results show how the inclusion of FCR-N and mFRR capacity markets change the optimal day-ahead offer-function.

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Section: A Motivationmentioning

confidence: 99%

“…In the European electricity market, there are several newly announced markets to address the challenges confronted by the TSOs to balance the system [3]. The frequency during normal operation is kept within ± 0.1 Hz using primary control.…”

Section: A Motivationmentioning

confidence: 99%

Multimarket Trading Strategy of a Hydropower Producer Considering Active-Time Duration: A Distributional Regression Approach

Khodadadi

Hesamzadeh

Söder

2023

IEEE Systems Journal

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“…Frequency reserves are handled at a national level by the correspondent TSO through a market-based scheme [6]. In these configurations, participants offer their availability through capacity bids, including the power they are willing to provide and the economic compensation they require.…”

Section: Nordic Frequency Market Specificationsmentioning

confidence: 99%

Optimal Day Ahead Planning and Bidding Strategy of Battery Storage Unit Participating in Nordic Frequency Markets

2022

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The current energy transition needed to meet the world climate objectives is causing stability challenges in all the power systems. As a consequence, finding solutions that allow dealing with those frequency stability issues is critical to achieving the sustainability objectives. In this context, batteries can find new revenue opportunities by being part of the solution to this problem. This paper develops a mathematical model that provides the optimal bidding strategy and the most convenient operational planning for batteries participating in balancing markets. More specifically, this project is focused on the Swedish frequency markets whose minimum bid size is smaller than 5 MW. The proposed optimization problem is a two-stage stochastic mixed-integer and linear optimization from the battery operator's point of view that includes a novel step-by-step process for properly selecting the bid prices by the quantification of the risks, control costs and amortization of the battery. The originality of the work resides in the aforementioned process that allows risk assessment together with the linear modelling of paid-as-bid markets, commonly solved through non-linear problems. As a result, not only the profitability of this application for batteries is demonstrated, but it is also possible to observe the seasonal differences when it comes to revenue and power requirements. The model is tested with data from Sweden, but it is designed to be adjustable to other balancing markets. INDEX TERMSFrequency control; Balancing markets; Stochastic optimisation; Battery energy storage Nomenclature Economic penalization paid due to breach of FCR-N awarded bids in hour h and scenario ω[C]

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“…Market players that are responsible for imbalances are invoiced ex-post the day after operation. Information on the DA and FCR-N market [15], as well as on the imbalance settlement [16] are found in accompanying papers. In Fig.…”

Section: Market Frameworkmentioning

confidence: 99%

Risk-Averse Aggregator of Controllable Loads as Virtual Battery Providing Multiple Services

Herre

2020

2020 17th International Conference on the European Energy Market (EEM)

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Aggregators of controllable loads can offer flexibility services to different markets. The provision of multiple services to both energy and reserve markets can improve the economic viability of demand response and energy storage systems. In this paper, the day-ahead profit maximization of a risk-averse virtual battery operator providing multiple services is formulated as a MILP. The impact of different battery design parameters on the reserve provision and overall profitability is investigated. We show that power capacity has the highest impact on the profitability and reserve provision of the virtual battery, followed by energy capacity and grid connection limits.

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Nordic Balancing Markets: Overview of Market Rules

Cited by 23 publications

References 4 publications

Multimarket Trading Strategy of a Hydropower Producer Considering Active-Time Duration: A Distributional Regression Approach

Multimarket Trading Strategy of a Hydropower Producer Considering Active-Time Duration: A Distributional Regression Approach

Optimal Day Ahead Planning and Bidding Strategy of Battery Storage Unit Participating in Nordic Frequency Markets

Risk-Averse Aggregator of Controllable Loads as Virtual Battery Providing Multiple Services

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