Stochastic electricity dispatch: A challenge for market design

Abstract

We consider an electricity market with two sequential market clearings, for instance representing a day-ahead and a real-time market. When the rst market is cleared, there is uncertainty with respect to generation and/or load, while this uncertainty is resolved when the second market is cleared. We compare the outcomes of a stochastic market clearing model, i.e. a market clearing model taking into account both markets and the uncertainty, to a myopic market model where the rst market is cleared based only on given bids, and not taking into account neither the uncertainty nor the bids in the second market. While the stochastic market clearing gives a solution with a higher total social welfare, it poses several challenges for market design. The stochastic dispatch may lead to a dispatch where the prices deviate from the bid curves in the rst market. This can lead to incentives for selfscheduling, require producers to produce above marginal cost and consumers to pay above their marginal value in the rst market. Our analysis show that the wind producer has an incentive to deviate from the system optimal plan in both the myopic and stochastic model, and this incentive is particularly strong under the myopic model. We also discuss how the total social welfare of the market outcome under stochastic market clearing depends on the quality of the information that the system operator will base the market clearing on. In particular, we show that the wind producer has an incentive to misreport the probability distribution for wind.

Det kulturkristne Hareid i det pietistiske Sunnmøre

“…Gjaeringen førte til at det ble kalt sammen til et lekmannsmøte i Ålesund, i november samme år som spenningen toppet seg i Volda. 73 Johannes Solem (1868Solem ( -1948 74 distribuerte innbydelsen, som han undertegnet sammen med Nikolai Molvik og Paul Myklebust fra Ørsta. Med direkte henvisning til innflytelsen fra Marius Giverholt ble Solem karakterisert som «den største drivende kraft i kyrkjelivet på Sunnmøre den komande mannsalderen».…”

“…Hareid kristelege mannskor blei stifta i etterkant av denne vekkinga. 73 Siste større vekking var i 1956 -i Hareid ved Arthur Birkeland , utsendt frå indremisjonen.…”

The Flow-Based Market Coupling Model and the Bidding Zone Configuration

“…Figure 4: Wind generation 3 We used the Weibull distribution to simulate wind speed, and then we used the function from the software package WindPRO (https://www.emd.dk/windpro/) to convert wind speed to power production.…”

“…However, in this paper, we do not investigate the bidding strategy for the wind generators in the day ahead market. SeeBjørndal et al (2016)…”

A Stochastic Market-Clearing Model Using Semidefinite Relaxation

“…An stochastic market-clearing (SMC) model aims at determining the day-ahead (DA) schedule and real-time (RT) balance settlements that minimize the expected production cost [1]. Usually, in the day-ahead market, the power generation resources are scheduled at each hour of the following day by an independent system operator (ISO) and using a deterministic clearing formulation that rely on expected forecasts [2].…”