IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v270y2020ics0306261920304967.html
   My bibliography  Save this article

Coordinated optimal strategic demand reserve procurement in multi-area power systems

Author

Listed:
  • Tómasson, Egill
  • Söder, Lennart

Abstract

With renewable energy sources becoming an ever-increasing share of the generation mix of modern power systems, having the proper amount of reserve becomes of utmost importance to ensure the short-term as well as the long-term adequacy level in the system. This reserve can be in the form of generation assets or it can be provided from assets on the demand side. The contribution that these resources make to the adequacy of the system is referred to as their capacity credit. This paper derives a methodology for calculating the capacity credit of a resource in a multi-area system. Based on that, an approach is developed that quantifies how strategic demand reserve should be distributed between power system areas in a multi-area system in order to reach individual long-term reliability targets in all areas. Lastly, an algorithm is derived that optimizes the coordinated procurement of multi-area strategic demand reserve by counterbalancing the value of lost load against the costs related to maintaining generation adequacy. A combination of an iterative multi-variate gradient approach and a Monte Carlo simulation with an efficient sensitivity analysis allows this to be achieved in a computationally economical way. An illustrative example and numerical simulations of test systems using real data from the Nordic power system demonstrate the effectiveness of the proposed approach.

Suggested Citation

  • Tómasson, Egill & Söder, Lennart, 2020. "Coordinated optimal strategic demand reserve procurement in multi-area power systems," Applied Energy, Elsevier, vol. 270(C).
  • Handle: RePEc:eee:appene:v:270:y:2020:i:c:s0306261920304967
    DOI: 10.1016/j.apenergy.2020.114984
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261920304967
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.apenergy.2020.114984?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Hermans, Mathias & Bruninx, Kenneth & Vitiello, Silvia & Spisto, Amanda & Delarue, Erik, 2018. "Analysis on the interaction between short-term operating reserves and adequacy," Energy Policy, Elsevier, vol. 121(C), pages 112-123.
    2. Par Holmberg & Robert A. Ritz, 2019. "Capacity mechanisms and the technology mix in competitive electricity markets," Working Papers EPRG1921, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    3. Carleton Coffrin & Pascal Van Hentenryck, 2014. "A Linear-Programming Approximation of AC Power Flows," INFORMS Journal on Computing, INFORMS, vol. 26(4), pages 718-734, November.
    4. Pfenninger, Stefan & Staffell, Iain, 2016. "Long-term patterns of European PV output using 30 years of validated hourly reanalysis and satellite data," Energy, Elsevier, vol. 114(C), pages 1251-1265.
    5. Nolan, Sheila & Neu, Olivier & O’Malley, Mark, 2017. "Capacity value estimation of a load-shifting resource using a coupled building and power system model," Applied Energy, Elsevier, vol. 192(C), pages 71-82.
    6. Nistor, Silviu & Wu, Jianzhong & Sooriyabandara, Mahesh & Ekanayake, Janaka, 2015. "Capability of smart appliances to provide reserve services," Applied Energy, Elsevier, vol. 138(C), pages 590-597.
    7. Pavić, Ivan & Capuder, Tomislav & Kuzle, Igor, 2015. "Value of flexible electric vehicles in providing spinning reserve services," Applied Energy, Elsevier, vol. 157(C), pages 60-74.
    8. Keles, Dogan & Bublitz, Andreas & Zimmermann, Florian & Genoese, Massimo & Fichtner, Wolf, 2016. "Analysis of design options for the electricity market: The German case," Applied Energy, Elsevier, vol. 183(C), pages 884-901.
    9. Wang, D. & Parkinson, S. & Miao, W. & Jia, H. & Crawford, C. & Djilali, N., 2013. "Hierarchical market integration of responsive loads as spinning reserve," Applied Energy, Elsevier, vol. 104(C), pages 229-238.
    10. Joskow, Paul L., 2008. "Capacity payments in imperfect electricity markets: Need and design," Utilities Policy, Elsevier, vol. 16(3), pages 159-170, September.
    11. Staffell, Iain & Pfenninger, Stefan, 2016. "Using bias-corrected reanalysis to simulate current and future wind power output," Energy, Elsevier, vol. 114(C), pages 1224-1239.
    12. Peter Cramton & Axel Ockenfels & Steven Stoft, 2013. "Capacity Market Fundamentals," Economics of Energy & Environmental Policy, International Association for Energy Economics, vol. 0(Number 2).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sun, Weijia & Wang, Qi & Ye, Yujian & Tang, Yi, 2022. "Unified modelling of gas and thermal inertia for integrated energy system and its application to multitype reserve procurement," Applied Energy, Elsevier, vol. 305(C).
    2. Miao, Cairan & Wang, Qi & Tang, Yi, 2023. "A gas-thermal inertia-based frequency response strategy considering the suppression of a second frequency dip in an integrated energy system," Energy, Elsevier, vol. 263(PD).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zappa, William & Junginger, Martin & van den Broek, Machteld, 2021. "Can liberalised electricity markets support decarbonised portfolios in line with the Paris Agreement? A case study of Central Western Europe," Energy Policy, Elsevier, vol. 149(C).
    2. Thomaßen, Georg & Redl, Christian & Bruckner, Thomas, 2022. "Will the energy-only market collapse? On market dynamics in low-carbon electricity systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 164(C).
    3. Vijay, Avinash & Fouquet, Nicolas & Staffell, Iain & Hawkes, Adam, 2017. "The value of electricity and reserve services in low carbon electricity systems," Applied Energy, Elsevier, vol. 201(C), pages 111-123.
    4. Fraunholz, Christoph & Miskiw, Kim K. & Kraft, Emil & Fichtner, Wolf & Weber, Christoph, 2021. "On the role of risk aversion and market design in capacity expansion planning," Working Paper Series in Production and Energy 62, Karlsruhe Institute of Technology (KIT), Institute for Industrial Production (IIP).
    5. Jimenez, I. Sanchez & Ribó-Pérez, D. & Cvetkovic, M. & Kochems, J. & Schimeczek, C. & de Vries, L.J., 2024. "Can an energy only market enable resource adequacy in a decarbonized power system? A co-simulation with two agent-based-models," Applied Energy, Elsevier, vol. 360(C).
    6. Aryandoust, Arsam & Lilliestam, Johan, 2017. "The potential and usefulness of demand response to provide electricity system services," Applied Energy, Elsevier, vol. 204(C), pages 749-766.
    7. Höschle, Hanspeter & De Jonghe, Cedric & Le Cadre, Hélène & Belmans, Ronnie, 2017. "Electricity markets for energy, flexibility and availability — Impact of capacity mechanisms on the remuneration of generation technologies," Energy Economics, Elsevier, vol. 66(C), pages 372-383.
    8. Sebastian Schäfer & Lisa Altvater, 2019. "On the functioning of a capacity market with an increasing share of renewable energy," Journal of Regulatory Economics, Springer, vol. 56(1), pages 59-84, August.
    9. Heuberger, Clara F. & Bains, Praveen K. & Mac Dowell, Niall, 2020. "The EV-olution of the power system: A spatio-temporal optimisation model to investigate the impact of electric vehicle deployment," Applied Energy, Elsevier, vol. 257(C).
    10. Bublitz, Andreas & Keles, Dogan & Zimmermann, Florian & Fraunholz, Christoph & Fichtner, Wolf, 2019. "A survey on electricity market design: Insights from theory and real-world implementations of capacity remuneration mechanisms," Energy Economics, Elsevier, vol. 80(C), pages 1059-1078.
    11. Sebastian Schäfer & Lisa Altvater, 2021. "A Capacity Market for the Transition towards Renewable-Based Electricity Generation with Enhanced Political Feasibility," Energies, MDPI, vol. 14(18), pages 1-24, September.
    12. Marko Hočevar & Lovrenc Novak & Primož Drešar & Gašper Rak, 2022. "The Status Quo and Future of Hydropower in Slovenia," Energies, MDPI, vol. 15(19), pages 1-13, September.
    13. Lukas Kriechbaum & Philipp Gradl & Romeo Reichenhauser & Thomas Kienberger, 2020. "Modelling Grid Constraints in a Multi-Energy Municipal Energy System Using Cumulative Exergy Consumption Minimisation," Energies, MDPI, vol. 13(15), pages 1-23, July.
    14. Behrang Shirizadeh, Quentin Perrier, and Philippe Quirion, 2022. "How Sensitive are Optimal Fully Renewable Power Systems to Technology Cost Uncertainty?," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1).
    15. Keppler, Jan Horst & Quemin, Simon & Saguan, Marcelo, 2022. "Why the sustainable provision of low-carbon electricity needs hybrid markets," Energy Policy, Elsevier, vol. 171(C).
    16. Omoyele, Olalekan & Hoffmann, Maximilian & Koivisto, Matti & Larrañeta, Miguel & Weinand, Jann Michael & Linßen, Jochen & Stolten, Detlef, 2024. "Increasing the resolution of solar and wind time series for energy system modeling: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 189(PB).
    17. Liu, Hailiang & Andresen, Gorm Bruun & Greiner, Martin, 2018. "Cost-optimal design of a simplified highly renewable Chinese electricity network," Energy, Elsevier, vol. 147(C), pages 534-546.
    18. Géremi Gilson Dranka & Paula Ferreira, 2020. "Electric Vehicles and Biofuels Synergies in the Brazilian Energy System," Energies, MDPI, vol. 13(17), pages 1-22, August.
    19. Shirizadeh, Behrang & Quirion, Philippe, 2022. "The importance of renewable gas in achieving carbon-neutrality: Insights from an energy system optimization model," Energy, Elsevier, vol. 255(C).
    20. Growitsch, Christian & Just, Lisa & Pedell, Burkhard, 2014. "Risk Assessment of Investments in Energy-only and Capacity Markets," Die Unternehmung - Swiss Journal of Business Research and Practice, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 68(3), pages 181-188.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:appene:v:270:y:2020:i:c:s0306261920304967. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.