IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v318y2022ics0306261922005815.html
   My bibliography  Save this article

Impact of Large-scale concentrated solar power on energy and auxiliary markets

Author

Listed:
  • Xiao, Xiangsheng
  • Wang, JianXiao
  • Hill, David J.

Abstract

Concentrated solar power (CSP) generation has been widely regarded as a promising technology to increase the penetration of renewable energy-based generation units in power systems. Numerous research studies have been conducted in various ways to promote the participation of a CSP generator as a price-taker in electricity markets. However, it remains an open question as to how the strategic behavior of a CSP generator as a price-maker affects electricity markets. To this end, we conducted a numerical analysis to quantify the impact of a strategic large-scale CSP generator on energy and auxiliary markets. A three-stage stochastic bi-level model is proposed to describe the strategic behavior of a CSP generator as a price-maker in electricity markets. The impact of the risk-averse level of a CSP generator is also incorporated. Moreover, network constraints are considered to make our conclusion more realistic. The proposed bi-level model is recast into a mathematical programming with equilibrium constraints form firstly by using Karush-Kuhn-Tucker conditions and then a mixed-integer-liner-programming form by using the strong duality theory, and big-M method. Case studies based on an IEEE-56 bus system demonstrate that a price-maker CSP generator can decrease the price of both energy markets and reserve markets. However, an associated thermal energy storage tank can alleviate the negative impact of a CSP generator on electricity markets. Additionally, the high risk-averse level of a CSP generator will lead to an increased equilibrium price.

Suggested Citation

  • Xiao, Xiangsheng & Wang, JianXiao & Hill, David J., 2022. "Impact of Large-scale concentrated solar power on energy and auxiliary markets," Applied Energy, Elsevier, vol. 318(C).
    • Handle: RePEc:eee:appene:v:318:y:2022:i:c:s0306261922005815
    DOI: 10.1016/j.apenergy.2022.119216
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261922005815
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.apenergy.2022.119216?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. Sheikhahmadi, P. & Bahramara, S. & Moshtagh, J. & Yazdani Damavandi, M., 2018. "A risk-based approach for modeling the strategic behavior of a distribution company in wholesale energy market," Applied Energy, Elsevier, vol. 214(C), pages 24-38.
    2. Iria, José & Soares, Filipe & Matos, Manuel, 2019. "Optimal bidding strategy for an aggregator of prosumers in energy and secondary reserve markets," Applied Energy, Elsevier, vol. 238(C), pages 1361-1372.
    3. Dimitriadis, Christos N. & Tsimopoulos, Evangelos G. & Georgiadis, Michael C., 2022. "Strategic bidding of an energy storage agent in a joint energy and reserve market under stochastic generation," Energy, Elsevier, vol. 242(C).
    4. Xiao, Xiangsheng & Wang, Jianxiao & Lin, Rui & Hill, David J. & Kang, Chongqing, 2020. "Large-scale aggregation of prosumers toward strategic bidding in joint energy and regulation markets," Applied Energy, Elsevier, vol. 271(C).
    5. Khamlich, Imane & Zeng, Kuo & Flamant, Gilles & Baeyens, Jan & Zou, Chongzhe & Li, Jun & Yang, Xinyi & He, Xiao & Liu, Qingchuan & Yang, Haiping & Yang, Qing & Chen, Hanping, 2021. "Technical and economic assessment of thermal energy storage in concentrated solar power plants within a spot electricity market," Renewable and Sustainable Energy Reviews, Elsevier, vol. 139(C).
    6. Moghaddam, Iman Gerami & Nick, Mostafa & Fallahi, Farhad & Sanei, Mohsen & Mortazavi, Saeid, 2013. "Risk-averse profit-based optimal operation strategy of a combined wind farm–cascade hydro system in an electricity market," Renewable Energy, Elsevier, vol. 55(C), pages 252-259.
    7. Zhao, Yuxuan & Liu, Shengyuan & Lin, Zhenzhi & Wen, Fushuan & Ding, Yi, 2021. "Coordinated scheduling strategy for an integrated system with concentrating solar power plants and solar prosumers considering thermal interactions and demand flexibilities," Applied Energy, Elsevier, vol. 304(C).
    8. Wang, Jianxiao & Zhong, Haiwang & Wu, Chenye & Du, Ershun & Xia, Qing & Kang, Chongqing, 2019. "Incentivizing distributed energy resource aggregation in energy and capacity markets: An energy sharing scheme and mechanism design," Applied Energy, Elsevier, vol. 252(C), pages 1-1.
    9. Pousinho, H.M.I. & Silva, H. & Mendes, V.M.F. & Collares-Pereira, M. & Pereira Cabrita, C., 2014. "Self-scheduling for energy and spinning reserve of wind/CSP plants by a MILP approach," Energy, Elsevier, vol. 78(C), pages 524-534.
    10. Fang, Yuchen & Zhao, Shuqiang, 2020. "Look-ahead bidding strategy for concentrating solar power plants with wind farms," Energy, Elsevier, vol. 203(C).
    11. Adhikari, Rajendra & Pipattanasomporn, M. & Rahman, S., 2018. "An algorithm for optimal management of aggregated HVAC power demand using smart thermostats," Applied Energy, Elsevier, vol. 217(C), pages 166-177.
    12. Sun, Shitong & Kazemi-Razi, S. Mahdi & Kaigutha, Lisa G. & Marzband, Mousa & Nafisi, Hamed & Al-Sumaiti, Ameena Saad, 2022. "Day-ahead offering strategy in the market for concentrating solar power considering thermoelectric decoupling by a compressed air energy storage," Applied Energy, Elsevier, vol. 305(C).
    13. Dominguez, R. & Baringo, L. & Conejo, A.J., 2012. "Optimal offering strategy for a concentrating solar power plant," Applied Energy, Elsevier, vol. 98(C), pages 316-325.
    14. Guo, Hongye & Chen, Qixin & Xia, Qing & Kang, Chongqing, 2019. "Electricity wholesale market equilibrium analysis integrating individual risk-averse features of generation companies," Applied Energy, Elsevier, vol. 252(C), pages 1-1.
    15. Tsimopoulos, Evangelos G. & Georgiadis, Michael C., 2019. "Optimal strategic offerings for a conventional producer in jointly cleared energy and balancing markets under high penetration of wind power production," Applied Energy, Elsevier, vol. 244(C), pages 16-35.
    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. Norambuena-Guzmán, Valentina & Palma-Behnke, Rodrigo & Hernández-Moris, Catalina & Cerda, Maria Teresa & Flores-Quiroz, Ángela, 2024. "Towards CSP technology modeling in power system expansion planning," Applied Energy, Elsevier, vol. 364(C).

    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. Xiao, Xiangsheng & Wang, Jianxiao & Lin, Rui & Hill, David J. & Kang, Chongqing, 2020. "Large-scale aggregation of prosumers toward strategic bidding in joint energy and regulation markets," Applied Energy, Elsevier, vol. 271(C).
    2. Afzal S. Siddiqui & Sauleh A. Siddiqui, 2022. "Ambiguities and nonmonotonicities under prosumer power," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 30(3), pages 492-532, October.
    3. Jun Dong & Dongran Liu & Xihao Dou & Bo Li & Shiyao Lv & Yuzheng Jiang & Tongtao Ma, 2021. "Key Issues and Technical Applications in the Study of Power Markets as the System Adapts to the New Power System in China," Sustainability, MDPI, vol. 13(23), pages 1-29, December.
    4. Xiong, Houbo & Yan, Mingyu & Guo, Chuangxin & Ding, Yi & Zhou, Yue, 2023. "DP based multi-stage ARO for coordinated scheduling of CSP and wind energy with tractable storage scheme: Tight formulation and solution technique," Applied Energy, Elsevier, vol. 333(C).
    5. Hong, Qiuyi & Meng, Fanlin & Liu, Jian & Bo, Rui, 2023. "A bilevel game-theoretic decision-making framework for strategic retailers in both local and wholesale electricity markets," Applied Energy, Elsevier, vol. 330(PA).
    6. Lan, Liuhan & Zhang, Xingping & Zhang, Youzhong, 2023. "Low carbon and efficiency oriented day-ahead joint electrical energy and ancillary services market clearing model for generation-side in China," Energy Economics, Elsevier, vol. 121(C).
    7. Fan, Zhi-Ping & Cai, Siqin & Guo, Dongliang & Xu, Bo, 2022. "Facing the uncertainty of renewable energy production: Production decisions of a power plant with different risk attitudes," Renewable Energy, Elsevier, vol. 199(C), pages 1237-1247.
    8. Sun, Shitong & Kazemi-Razi, S. Mahdi & Kaigutha, Lisa G. & Marzband, Mousa & Nafisi, Hamed & Al-Sumaiti, Ameena Saad, 2022. "Day-ahead offering strategy in the market for concentrating solar power considering thermoelectric decoupling by a compressed air energy storage," Applied Energy, Elsevier, vol. 305(C).
    9. Dranka, Géremi Gilson & Ferreira, Paula & Vaz, A. Ismael F., 2021. "A review of co-optimization approaches for operational and planning problems in the energy sector," Applied Energy, Elsevier, vol. 304(C).
    10. Tang, Hong & Wang, Shengwei, 2022. "Multi-level optimal dispatch strategy and profit-sharing mechanism for unlocking energy flexibilities of non-residential building clusters in electricity markets of multiple flexibility services," Renewable Energy, Elsevier, vol. 201(P1), pages 35-45.
    11. Chen Zhao & Jiaqi Sun & Ping He & Shaohua Zhang & Yuqi Ji, 2023. "Integrating Risk Preferences into Game Analysis of Price-Making Retailers in Power Market," Energies, MDPI, vol. 16(8), pages 1-18, April.
    12. Abiodun, Kehinde & Hood, Karoline & Cox, John L. & Newman, Alexandra M. & Zolan, Alex J., 2023. "The value of concentrating solar power in ancillary services markets," Applied Energy, Elsevier, vol. 334(C).
    13. Fang, Yuchen & Zhao, Shuqiang, 2020. "Look-ahead bidding strategy for concentrating solar power plants with wind farms," Energy, Elsevier, vol. 203(C).
    14. Chen, Boyu & Che, Yanbo & Zheng, Zhihao & Zhao, Shuaijun, 2023. "Multi-objective robust optimal bidding strategy for a data center operator based on bi-level optimization," Energy, Elsevier, vol. 269(C).
    15. Khaloie, Hooman & Anvari-Moghaddam, Amjad & Contreras, Javier & Siano, Pierluigi, 2021. "Risk-involved optimal operating strategy of a hybrid power generation company: A mixed interval-CVaR model," Energy, Elsevier, vol. 232(C).
    16. Vasallo, Manuel Jesús & Bravo, José Manuel, 2016. "A MPC approach for optimal generation scheduling in CSP plants," Applied Energy, Elsevier, vol. 165(C), pages 357-370.
    17. Khalili, Reza & Khaledi, Arian & Marzband, Mousa & Nematollahi, Amin Foroughi & Vahidi, Behrooz & Siano, Pierluigi, 2023. "Robust multi-objective optimization for the Iranian electricity market considering green hydrogen and analyzing the performance of different demand response programs," Applied Energy, Elsevier, vol. 334(C).
    18. Martinek, Janna & Jorgenson, Jennie & Mehos, Mark & Denholm, Paul, 2018. "A comparison of price-taker and production cost models for determining system value, revenue, and scheduling of concentrating solar power plants," Applied Energy, Elsevier, vol. 231(C), pages 854-865.
    19. Yang, Peiwen & Dong, Jun & Lin, Jin & Liu, Yao & Fang, Debin, 2021. "Analysis of offering behavior of generation-side integrated energy aggregator in electricity market:A Bayesian evolutionary approach," Energy, Elsevier, vol. 228(C).
    20. Cojocaru, Emilian Gelu & Bravo, José Manuel & Vasallo, Manuel Jesús & Santos, Diego Marín, 2019. "Optimal scheduling in concentrating solar power plants oriented to low generation cycling," Renewable Energy, Elsevier, vol. 135(C), pages 789-799.

    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:318:y:2022:i:c:s0306261922005815. 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.