Renewable Energy Integration in Zonal Markets

Abstract

In this paper we investigate the impact of zonal network management in the operation of power systems with significant levels of renewable energy integration. Our study is inspired by the current state of the European energy market, and we focus on a case study of the Central Western European (CWE) system. First, we present a hierarchy of models that account for unit commitment, the separation of energy and reserves, and the simplified representation of transmission constraints in a zonal market, in order to examine the impact of these factors on efficiency in a regime of large-scale renewable energy integration. Second, we simulate operations of the CWE system under the zonal market design using a detailed instance that consists of 656 thermal generators, 679 nodes and 1073 lines, with multiarea renewable energy production and 15-minute time resolution. Zonal market operations are compared against deterministic and stochastic unit commitment using high performance computing in order to tackle the scale of the resulting models. We find that market design can have an influence on cost efficiency which far exceeds the benefits of stochastic unit commitment relative to deterministic unit commitment. We conduct a detailed analysis of the numerical results in order to explain the relative performance of the different models.

A Distributed Computing Architecture for the Large-Scale Integration of Renewable Energy and Distributed Resources in Smart Grids

“…The model was constructed by using the network model of Hutcheon and Bialek [30], technical generator information provided to the authors by ENGIE, and multiarea demand and renewable energy information collected from national system operators (see [31] for details). We consider eight representative day types, one weekday and one weekend day per season, as being representative of the different conditions faced by the system throughout the year.…”

A Multi-Agent Model for Cross-Border Trading in the Continuous Intraday Electricity Market

“…Most of the literature on cross border trading in Europe has focused on the DA market [10,11,12,13,14,15,16,17]. In [10], the impact of stipulating minimum cross-border trading capacities in the markets, leading to augmented trading domains and resulting congestion management costs, is analyzed on social welfare.…”

“…In [10], the impact of stipulating minimum cross-border trading capacities in the markets, leading to augmented trading domains and resulting congestion management costs, is analyzed on social welfare. The impact of zonal market design with the ATC method on the power system operation with significant levels of renewable energy integration is studied in [14] where a sequential market clearing is performed for the DA and balancing markets. A model to study the FBMC-based DA market and 4 According to the Clean Energy Package, the TSOs need to make 70% of their cross-border line capacities available for trading in the market unless a derogation is approved or an action plan is in place [8] congestion management is proposed in [12] which explores how the generation shift keys impact critical network elements selection and the effects of flow reliability margins on the FBMC domain.…”

Market Power Under Nodal and Zonal Congestion Management Techniques

“…However, the calculation of the ATC is vague and not published or informed by TSOs. To gain a maximal social welfare in the whole Europe, Jensen et al (ress) and Aravena and Papavasiliou (2017) mentioned that ATCs should not be determined exogenously, rather should be optimized endogenously synchronized with day-ahead and real-time markets. The ATC calculation discussion is beyond the scope of our paper, but something that distinguishes this paper from former ones is how different ATC quantities for a specific inter-zonal interface e ∈ E could encourage or discourage market power.…”