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Internal hydro- and wind portfolio optimisation in real-time market operations

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  • Riddervold, Hans Ole
  • Aasgård, Ellen Krohn
  • Haukaas, Lisa
  • Korpås, Magnus

Abstract

In this paper aspects related to handling of intraday imbalances for hydro and wind power are addressed. The definition of imbalance cost is established and used to describe the potential benefits of shifting from plant-specific schedules to a common load requirement for wind and hydropower units in the same price area. The Nordpool intraday pay-as-bid market has been the basis for evaluation of imbalances, and some main characteristics for this market has been described. We consider how internal handling of complementary imbalances within the same river system with high inflow uncertainty and constrained reservoirs can reduce volatility in short-term marginal cost and risk compared to trading in the intraday market. We have also shown that the imbalance cost for a power producer with both wind and hydropower assets can be reduced by internal balancing in combination with sales and purchase in a pay-as-bid intraday market.

Suggested Citation

  • Riddervold, Hans Ole & Aasgård, Ellen Krohn & Haukaas, Lisa & Korpås, Magnus, 2021. "Internal hydro- and wind portfolio optimisation in real-time market operations," Renewable Energy, Elsevier, vol. 173(C), pages 675-687.
    • Handle: RePEc:eee:renene:v:173:y:2021:i:c:p:675-687
    DOI: 10.1016/j.renene.2021.04.001
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    References listed on IDEAS

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    1. Kahn, Alfred E. & Cramton, Peter C. & Porter, Robert H. & Tabors, Richard D., 2001. "Uniform Pricing or Pay-as-Bid Pricing: A Dilemma for California and Beyond," The Electricity Journal, Elsevier, vol. 14(6), pages 70-79, July.
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    4. Afshar, Karim & Ghiasvand, Farshad Shamsini & Bigdeli, Nooshin, 2018. "Optimal bidding strategy of wind power producers in pay-as-bid power markets," Renewable Energy, Elsevier, vol. 127(C), pages 575-586.
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    4. Klyve, Øyvind Sommer & Klæboe, Gro & Nygård, Magnus Moe & Marstein, Erik Stensrud, 2023. "Limiting imbalance settlement costs from variable renewable energy sources in the Nordics: Internal balancing vs. balancing market participation," Applied Energy, Elsevier, vol. 350(C).

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