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On the temporal granularity of joint energy-reserve markets in a high-RES system

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  • Hermans, Mathias
  • Bruninx, Kenneth
  • Van den Bergh, Kenneth
  • Poncelet, Kris
  • Delarue, Erik

Abstract

The cost-efficient integration of variable renewable power (vRES) requires adequate operating reserve and energy markets. This paper focusses on the benefits of increasing the temporal granularity of joint energy-operating reserve markets in a case study on two high-vRES systems. Specifically, the impact of the frequency (i.e., how often reserves are sized and procured) and the resolution or contract duration (i.e., the length of the sizing and procurement blocks) is isolated by comparing year-long unit commitment and economic dispatch simulation results. We optimize the power system’s operation in consecutive stages: scheduling of generation units with procurement of reserves, intra-day adjustments of generation schedules and real-time activation of flexibility to compensate for imbalances. The results suggest that dynamic and more frequent sizing, limiting the reserve procurement contract duration and a higher procurement frequency allow reducing the total operating cost by 1.5–1.8%, while eliminating scarcity on reserve markets. These design changes facilitate the integration of intermittent renewables in reserve markets. Finally, some challenges following the proposed market design changes are highlighted.

Suggested Citation

  • Hermans, Mathias & Bruninx, Kenneth & Van den Bergh, Kenneth & Poncelet, Kris & Delarue, Erik, 2021. "On the temporal granularity of joint energy-reserve markets in a high-RES system," Applied Energy, Elsevier, vol. 297(C).
    • Handle: RePEc:eee:appene:v:297:y:2021:i:c:s0306261921006036
    DOI: 10.1016/j.apenergy.2021.117172
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    References listed on IDEAS

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    1. Kristian Balzer & Joaquín Lazo & David Watts, 2023. "Economic Model of Ancillary Services in Real Time for Frequency Control," Energies, MDPI, vol. 16(17), pages 1-24, September.
    2. Gao, Shuang & Jurasz, Jakub & Li, Hailong & Corsetti, Edoardo & Yan, Jinyue, 2022. "Potential benefits from participating in day-ahead and regulation markets for CHPs," Applied Energy, Elsevier, vol. 306(PA).

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