IDEAS home Printed from https://ideas.repec.org/a/eee/rensus/v138y2021ics136403212030931x.html
   My bibliography  Save this article

State-of-the-art short-term electricity market operation with solar generation: A review

Author

Listed:
  • Yin, S.
  • Wang, J.
  • Li, Z.
  • Fang, X.

Abstract

With the accelerating penetration of solar energy in energy systems, market operations concerning the solar-associated intermittency are widely discussed. How to correctly model the solar generation in the market and solve the uncertainty-based operation problems call for solutions. Unlike other renewable resources, solar power can be more easily applied to the demand side through behind-the-meter installations in a distributed manner with significant future extensibility. The corresponding operational rules in the markets are largely being revised. Over the past two decades, with the development of deregulated power markets, numerous studies related to uncertainty-based market operations tend to transform the market from a deterministic and centralized framework to a stochastic and decentralized one. As the relevant literature is most recent, this paper reviews their contributions to electricity market operations with solar integration and underlines the research directions of this topic and ongoing industry practices. A thorough review of the electricity markets worldwide with solar energy is provided. A variety of proposed mathematical solutions to the problem are also discussed.

Suggested Citation

  • Yin, S. & Wang, J. & Li, Z. & Fang, X., 2021. "State-of-the-art short-term electricity market operation with solar generation: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 138(C).
    • Handle: RePEc:eee:rensus:v:138:y:2021:i:c:s136403212030931x
    DOI: 10.1016/j.rser.2020.110647
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S136403212030931X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.rser.2020.110647?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. Ahmed, R. & Sreeram, V. & Mishra, Y. & Arif, M.D., 2020. "A review and evaluation of the state-of-the-art in PV solar power forecasting: Techniques and optimization," Renewable and Sustainable Energy Reviews, Elsevier, vol. 124(C).
    2. Hirsch, Adam & Parag, Yael & Guerrero, Josep, 2018. "Microgrids: A review of technologies, key drivers, and outstanding issues," Renewable and Sustainable Energy Reviews, Elsevier, vol. 90(C), pages 402-411.
    3. Peter Cramton, 2017. "Electricity market design," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 33(4), pages 589-612.
    4. Anthony Papavasiliou & Yuting Mou & Léopold Cambier & Damien Scieur, 2018. "Application of stochastic dual dynamic programming to the real-time dispatch of storage under renewable supply uncertainty," LIDAM Reprints CORE 2943, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    5. Lopes, Francis M. & Conceição, Ricardo & Silva, Hugo G. & Salgado, Rui & Collares-Pereira, Manuel, 2021. "Improved ECMWF forecasts of direct normal irradiance: A tool for better operational strategies in concentrating solar power plants," Renewable Energy, Elsevier, vol. 163(C), pages 755-771.
    6. Bushnell, James, 2010. "Building Blocks: Investment in Renewable and Non-Renewable Technologies," Staff General Research Papers Archive 31546, Iowa State University, Department of Economics.
    7. Ben Ammar, Rim & Ben Ammar, Mohsen & Oualha, Abdelmajid, 2020. "Photovoltaic power forecast using empirical models and artificial intelligence approaches for water pumping systems," Renewable Energy, Elsevier, vol. 153(C), pages 1016-1028.
    8. Hu, Jing & Harmsen, Robert & Crijns-Graus, Wina & Worrell, Ernst & van den Broek, Machteld, 2018. "Identifying barriers to large-scale integration of variable renewable electricity into the electricity market: A literature review of market design," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P2), pages 2181-2195.
    9. Litjens, G.B.M.A. & Worrell, E. & van Sark, W.G.J.H.M., 2018. "Economic benefits of combining self-consumption enhancement with frequency restoration reserves provision by photovoltaic-battery systems," Applied Energy, Elsevier, vol. 223(C), pages 172-187.
    10. Hu, Jing & Crijns-Graus, Wina & Lam, Long & Gilbert, Alyssa, 2015. "Ex-ante evaluation of EU ETS during 2013–2030: EU-internal abatement," Energy Policy, Elsevier, vol. 77(C), pages 152-163.
    11. René Henrion & Christian Küchler & Werner Römisch, 2009. "Scenario reduction in stochastic programming with respect to discrepancy distances," Computational Optimization and Applications, Springer, vol. 43(1), pages 67-93, May.
    12. Anthony Papavasiliou & Yuting Mou & Léopold Cambier & Damien Scieur, 2018. "Application of stochastic dual dynamic programming to the real-time dispatch of storage under renewable supply uncertainty," LIDAM Reprints CORE 3044, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    13. Qipeng Zheng & Jianhui Wang & Panos Pardalos & Yongpei Guan, 2013. "A decomposition approach to the two-stage stochastic unit commitment problem," Annals of Operations Research, Springer, vol. 210(1), pages 387-410, November.
    14. Ratnam, Kamala Sarojini & Palanisamy, K. & Yang, Guangya, 2020. "Future low-inertia power systems: Requirements, issues, and solutions - A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 124(C).
    15. Suvrajeet Sen & Lihua Yu & Talat Genc, 2006. "A Stochastic Programming Approach to Power Portfolio Optimization," Operations Research, INFORMS, vol. 54(1), pages 55-72, February.
    16. Jafari, Amirreza & Ganjeh Ganjehlou, Hamed & Khalili, Tohid & Bidram, Ali, 2020. "A fair electricity market strategy for energy management and reliability enhancement of islanded multi-microgrids," Applied Energy, Elsevier, vol. 270(C).
    17. Baringo, L. & Conejo, A.J., 2013. "Correlated wind-power production and electric load scenarios for investment decisions," Applied Energy, Elsevier, vol. 101(C), pages 475-482.
    18. Erick Delage & Yinyu Ye, 2010. "Distributionally Robust Optimization Under Moment Uncertainty with Application to Data-Driven Problems," Operations Research, INFORMS, vol. 58(3), pages 595-612, June.
    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. Christos N. Dimitriadis & Evangelos G. Tsimopoulos & Michael C. Georgiadis, 2021. "A Review on the Complementarity Modelling in Competitive Electricity Markets," Energies, MDPI, vol. 14(21), pages 1-27, November.
    2. Doumen, Sjoerd C. & Nguyen, Phuong & Kok, Koen, 2022. "Challenges for large-scale Local Electricity Market implementation reviewed from the stakeholder perspective," Renewable and Sustainable Energy Reviews, Elsevier, vol. 165(C).
    3. Zhao, Ning & You, Fengqi, 2022. "Sustainable power systems operations under renewable energy induced disjunctive uncertainties via machine learning-based robust optimization," Renewable and Sustainable Energy Reviews, Elsevier, vol. 161(C).
    4. Rezaeimozafar, Mostafa & Monaghan, Rory F.D. & Barrett, Enda & Duffy, Maeve, 2022. "A review of behind-the-meter energy storage systems in smart grids," Renewable and Sustainable Energy Reviews, Elsevier, vol. 164(C).
    5. Lei, Shunbo & Pozo, David & Wang, Ming-Hao & Li, Qifeng & Li, Yupeng & Peng, Chaoyi, 2022. "Power economic dispatch against extreme weather conditions: The price of resilience," Renewable and Sustainable Energy Reviews, Elsevier, vol. 157(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. Hannan, M.A. & Faisal, M. & Jern Ker, Pin & Begum, R.A. & Dong, Z.Y. & Zhang, C., 2020. "Review of optimal methods and algorithms for sizing energy storage systems to achieve decarbonization in microgrid applications," Renewable and Sustainable Energy Reviews, Elsevier, vol. 131(C).
    2. De Vivero-Serrano, Gustavo & Bruninx, Kenneth & Delarue, Erik, 2019. "Implications of bid structures on the offering strategies of merchant energy storage systems," Applied Energy, Elsevier, vol. 251(C), pages 1-1.
    3. Erfan Mohagheghi & Mansour Alramlawi & Aouss Gabash & Pu Li, 2018. "A Survey of Real-Time Optimal Power Flow," Energies, MDPI, vol. 11(11), pages 1-20, November.
    4. Street, Alexandre & Valladão, Davi & Lawson, André & Velloso, Alexandre, 2020. "Assessing the cost of the Hazard-Decision simplification in multistage stochastic hydrothermal scheduling," Applied Energy, Elsevier, vol. 280(C).
    5. Psarros, Georgios N. & Papathanassiou, Stavros A., 2023. "Generation scheduling in island systems with variable renewable energy sources: A literature review," Renewable Energy, Elsevier, vol. 205(C), pages 1105-1124.
    6. Thomas Pownall & Iain Soutar & Catherine Mitchell, 2021. "Re-Designing GB’s Electricity Market Design: A Conceptual Framework Which Recognises the Value of Distributed Energy Resources," Energies, MDPI, vol. 14(4), pages 1-26, February.
    7. Alejandra Tabares & Pablo Cortés, 2024. "Using Stochastic Dual Dynamic Programming to Solve the Multi-Stage Energy Management Problem in Microgrids," Energies, MDPI, vol. 17(11), pages 1-24, May.
    8. Zhouchun Huang & Qipeng P. Zheng & Andrew L. Liu, 2022. "A Nested Cross Decomposition Algorithm for Power System Capacity Expansion with Multiscale Uncertainties," INFORMS Journal on Computing, INFORMS, vol. 34(4), pages 1919-1939, July.
    9. Luyu Wang & Houbo Xiong & Yunhui Shi & Chuangxin Guo, 2023. "Rolling Horizon Robust Real-Time Economic Dispatch with Multi-Stage Dynamic Modeling," Mathematics, MDPI, vol. 11(11), pages 1-20, June.
    10. Nazare, Felipe & Street, Alexandre, 2023. "Solving multistage stochastic linear programming via regularized linear decision rules: An application to hydrothermal dispatch planning," European Journal of Operational Research, Elsevier, vol. 309(1), pages 345-358.
    11. Felipe Nazare & Alexandre Street, 2021. "Solving Multistage Stochastic Linear Programming via Regularized Linear Decision Rules: An Application to Hydrothermal Dispatch Planning," Papers 2110.03146, arXiv.org, revised Jan 2023.
    12. Yıldıran, Uğur, 2023. "Robust multi-stage economic dispatch with renewable generation and storage," European Journal of Operational Research, Elsevier, vol. 309(2), pages 890-909.
    13. Michaelis, Anne & Hanny, Lisa & Körner, Marc-Fabian & Strüker, Jens & Weibelzahl, Martin, 2024. "Consumer-centric electricity markets: Six design principles," Renewable and Sustainable Energy Reviews, Elsevier, vol. 191(C).
    14. Hassan, Muhammed A. & Bailek, Nadjem & Bouchouicha, Kada & Nwokolo, Samuel Chukwujindu, 2021. "Ultra-short-term exogenous forecasting of photovoltaic power production using genetically optimized non-linear auto-regressive recurrent neural networks," Renewable Energy, Elsevier, vol. 171(C), pages 191-209.
    15. Yonghan Feng & Sarah Ryan, 2016. "Solution sensitivity-based scenario reduction for stochastic unit commitment," Computational Management Science, Springer, vol. 13(1), pages 29-62, January.
    16. Xiong, Houbo & Zhou, Yue & Guo, Chuangxin & Ding, Yi & Luo, Fengji, 2023. "Multi-stage risk-based assessment for wind energy accommodation capability: A robust and non-anticipative method," Applied Energy, Elsevier, vol. 350(C).
    17. Sousa, Tiago & Soares, Tiago & Pinson, Pierre & Moret, Fabio & Baroche, Thomas & Sorin, Etienne, 2019. "Peer-to-peer and community-based markets: A comprehensive review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 104(C), pages 367-378.
    18. Liu, Shuangquan & Yang, Qiang & Cai, Huaxiang & Yan, Minghui & Zhang, Maolin & Wu, Dianning & Xie, Mengfei, 2019. "Market reform of Yunnan electricity in southwestern China: Practice, challenges and implications," Renewable and Sustainable Energy Reviews, Elsevier, vol. 113(C), pages 1-1.
    19. Silva-Rodriguez, Lina & Sanjab, Anibal & Fumagalli, Elena & Virag, Ana & Gibescu, Madeleine, 2022. "Short term wholesale electricity market designs: A review of identified challenges and promising solutions," Renewable and Sustainable Energy Reviews, Elsevier, vol. 160(C).
    20. Longjian Piao & Laurens de Vries & Mathijs de Weerdt & Neil Yorke-Smith, 2019. "Electricity Markets for DC Distribution Systems: Design Options," Energies, MDPI, vol. 12(14), pages 1-16, July.

    More about this item

    Statistics

    Access and download statistics

    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:rensus:v:138:y:2021:i:c:s136403212030931x. 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/600126/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.