Setting Reserve Requirements to Approximate the Efficiency of the Stochastic Dispatch

Abstract

This paper deals with the problem of clearing sequential electricity markets under uncertainty. We consider the European approach, where reserves are traded separately from energy to meet exogenous reserve requirements. Recently proposed stochastic dispatch models that co-optimize these services provide the most efficient solution in terms of expected operating costs by computing reserve needs endogenously. However, these models are incompatible with existing market designs. This paper proposes a new method to compute reserve requirements that bring the outcome of sequential markets closer to the stochastic energy and reserves co-optimization in terms of cost efficiency. Our method is based on a stochastic bilevel program that implicitly improves the inter-temporal coordination of energy and reserve markets, but remains compatible with the European market design. We use two standard IEEE reliability test cases to illustrate the benefit of intelligently setting operating reserves in single and multiple reserve control zones.

Chance-Constrained Scheduling of Underground Pumped Hydro Energy Storage in Presence of Model Uncertainties

“…The considered market structure is inspired by the European energy-only and reserve capacity markets, which are cleared sequentially via independent auctions [40]. In most countries, however, the reserve procurement currently takes place well before the day-ahead market clearing (e.g., weekahead), which prevents storage resources to efficiently contribute due to the necessity to be continuously available during the whole contracting period [41].…”

A Joint Optimization Model for Energy and Reserve Capacity Scheduling With the Integration of Variable Energy Resources

“…The ESO could offer ancillary services to achieve a more robust operation of the system and also improve their profit. Therefore, in this regard some studies have quantified the provision of reserve energy as given in [25]- [30]. These studies have focused solely on optimizing the economic operation of the combined dispatch of energy and reserve [31].…”

Non‐linear hybrid approach for the scheduling of merchant underground pumped hydro energy storage

“…The considered market structure arises from the European energyonly and reserve capacity markets, which are cleared sequentially through independent auctions [28]. As represented in Fig.…”

“…Since the parameters s v may fluctuate (with 10 s resolution) within the 15 min optimisation intervals, the most conservative values s v are selected to ensure the feasibility of the power scheduling at each point in time. In practice, the UPHES state variables u v approximated in Step 1, and listed in (28), can be grouped into four different sets.…”