Reliability-constrained capacity market design with high proportions of renewable energies

Abstract

Renewable energy generation (REG) has continued to grow strongly and resulted in the lower profitability of conventional generation. Meanwhile, the indeterminacy of REG will also lead to electricity balancing challenges and more volatile and less-predictable physical flows in the power grid. In this case, a capacity market is essential to motivate new investments and, therefore, ensure supply adequacy. Considering the low-carbon transition goal and the requirements of the reliability of the power system, this paper develops a reliability-constrained capacity market framework in which the reliability criterion rather than the capacity supply–demand equilibrium is taken into account. The ramping constraints, devices’ random failures, and REG uncertainties are comprehensively considered in the capacity requirement determination and allocation. First, a comprehensive capacity market mechanism coordinated with multi-objective regulations is proposed to compensate the capacity providers and encourage the renewable energy transition. Then, a novel capacity market model is proposed to clear the market with reliability constraints. Moreover, to reduce the computational burden caused by the explicit consideration of reliability constraints, several techniques are applied including the root-event-based state screening technique and the adaptive Kriging metamodel. A modified IEEE-RTS-79 case is studied to illustrate the benefits of the proposed reliability-constrained capacity market model.