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Benefits of solar forecasting for energy imbalance markets

Author

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  • Kaur, Amanpreet
  • Nonnenmacher, Lukas
  • Pedro, Hugo T.C.
  • Coimbra, Carlos F.M.

Abstract

Short term electricity trading to balance generation and demand provides an economic opportunity to integrate larger shares of variable renewable energy sources in the power grid. Recently, many regulatory market environments are reorganized to allow short term electricity trading. This study seeks to quantify the benefits of solar forecasting for energy imbalance markets (EIM). State-of-the-art solar forecasts, covering forecast horizons ranging from 24 h to 5 min are proposed and compared against the currently used benchmark models, persistence (P) and smart persistence (SP). The implemented reforecast of numerical weather prediction time series achieves a skill of 14.5% over the smart persistence model. Using the proposed forecasts for a forecast horizon of up to 75 min for a single 1 MW power plant reduces required flexibility reserves by 21% and 16.14%, depending on the allowed trading intervals (5 and 15 min). The probability of an imbalance, caused through wrong market bids from PV solar plants, can be reduced by 19.65% and 15.12% (for 5 and 15 min trading intervals). All EIM stakeholders benefit from accurate forecasting. Previous estimates on the benefits of EIMs, based on persistence model are conservative. It is shown that the design variables regulating the market time lines, the bidding and the binding schedules, drive the benefits of forecasting.

Suggested Citation

  • Kaur, Amanpreet & Nonnenmacher, Lukas & Pedro, Hugo T.C. & Coimbra, Carlos F.M., 2016. "Benefits of solar forecasting for energy imbalance markets," Renewable Energy, Elsevier, vol. 86(C), pages 819-830.
    • Handle: RePEc:eee:renene:v:86:y:2016:i:c:p:819-830
    DOI: 10.1016/j.renene.2015.09.011
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    References listed on IDEAS

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    1. Wang, Qi & Zhang, Chunyu & Ding, Yi & Xydis, George & Wang, Jianhui & Østergaard, Jacob, 2015. "Review of real-time electricity markets for integrating Distributed Energy Resources and Demand Response," Applied Energy, Elsevier, vol. 138(C), pages 695-706.
    2. Cifor, Angela & Denholm, Paul & Ela, Erik & Hodge, Bri-Mathias & Reed, Adam, 2015. "The policy and institutional challenges of grid integration of renewable energy in the western United States," Utilities Policy, Elsevier, vol. 33(C), pages 34-41.
    3. Pedro, Hugo T.C. & Coimbra, Carlos F.M., 2015. "Nearest-neighbor methodology for prediction of intra-hour global horizontal and direct normal irradiances," Renewable Energy, Elsevier, vol. 80(C), pages 770-782.
    4. Zagouras, Athanassios & Pedro, Hugo T.C. & Coimbra, Carlos F.M., 2015. "On the role of lagged exogenous variables and spatio–temporal correlations in improving the accuracy of solar forecasting methods," Renewable Energy, Elsevier, vol. 78(C), pages 203-218.
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