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Assessing environmental, economic, and reliability impacts of flexible ramp products in MISO's electricity market

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  • Cornelius, Adam
  • Bandyopadhyay, Rubenka
  • Patiño-Echeverri, Dalia

Abstract

Increased variability and uncertainty of net electrical load due to high penetration of wind and solar power augments the need for dispatching conventional generators with sufficient ramping capability (RC) needed to balance demand with supply. Having sufficient RC reduces the need of last minute dispatch schedule modifications which cause cost, reliability and environmental outcomes that reduce the benefits of renewables. The Midcontinent Independent System Operator (MISO), has modified its Unit Commitment and Economic Dispatch algorithms to account for the economic value of provisioning adequate RC levels. This paper explores the outcomes of this modified market-clearing process by simulating 10-minute operations of a scaled MISO test system, for three representative months under low and high wind penetration scenarios. Changes in system performance are quantified by comparing system costs, scarcity events/pricing, energy prices, generation-fuel mix, wind-power curtailment, and CO2 emissions between the conventional market-clearing algorithm and one with flexible RC products. Results indicate that adding RC products lowers CO2 emissions and system costs, facilitates wind integration, and improves reliability. These benefits are robust to changes in the market clearing algorithm parameters such as over/under generation penalties and reserve scarcity prices.

Suggested Citation

  • Cornelius, Adam & Bandyopadhyay, Rubenka & Patiño-Echeverri, Dalia, 2018. "Assessing environmental, economic, and reliability impacts of flexible ramp products in MISO's electricity market," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P2), pages 2291-2298.
    • Handle: RePEc:eee:rensus:v:81:y:2018:i:p2:p:2291-2298
    DOI: 10.1016/j.rser.2017.06.037
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    References listed on IDEAS

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    1. Alizadeh, M.I. & Parsa Moghaddam, M. & Amjady, N. & Siano, P. & Sheikh-El-Eslami, M.K., 2016. "Flexibility in future power systems with high renewable penetration: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 57(C), pages 1186-1193.
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    3. Godoy-González, Diego & Gil, Esteban & Gutiérrez-Alcaraz, Guillermo, 2020. "Ramping ancillary service for cost-based electricity markets with high penetration of variable renewable energy," Energy Economics, Elsevier, vol. 85(C).
    4. Li, Mingquan & Gao, Huiwen & Abdulla, Ahmed & Shan, Rui & Gao, Shuo, 2022. "Combined effects of carbon pricing and power market reform on CO2 emissions reduction in China's electricity sector," Energy, Elsevier, vol. 257(C).
    5. Hohl, Cody & Lo Prete, Chiara & Radhakrishnan, Ashish & Webster, Mort, 2023. "Intraday markets, wind integration and uplift payments in a regional U.S. power system," Energy Policy, Elsevier, vol. 175(C).
    6. Li, Mingquan & Patiño-Echeverri, Dalia & Zhang, Junfeng (Jim), 2019. "Policies to promote energy efficiency and air emissions reductions in China's electric power generation sector during the 11th and 12th five-year plan periods: Achievements, remaining challenges, and ," Energy Policy, Elsevier, vol. 125(C), pages 429-444.
    7. Virguez, Edgar & Wang, Xianxun & Patiño-Echeverri, Dalia, 2021. "Utility-scale photovoltaics and storage: Decarbonizing and reducing greenhouse gases abatement costs," Applied Energy, Elsevier, vol. 282(PA).
    8. Martha N. Acosta & Francisco Gonzalez-Longatt & Juan Manuel Roldan-Fernandez & Manuel Burgos-Payan, 2021. "A Coordinated Control of Offshore Wind Power and BESS to Provide Power System Flexibility," Energies, MDPI, vol. 14(15), pages 1-17, July.
    9. Li, Mingquan & Shan, Rui & Virguez, Edgar & Patiño-Echeverri, Dalia & Gao, Shuo & Ma, Haichao, 2022. "Energy storage reduces costs and emissions even without large penetration of renewable energy: The case of China Southern Power Grid," Energy Policy, Elsevier, vol. 161(C).
    10. Mansourshoar, Paria & Yazdankhah, Ahmad Sadeghi & Vatanpour, Mohsen & Mohammadi-Ivatloo, Behnam, 2022. "Impact of implementing a price-based demand response program on the system reliability in security-constrained unit commitment problem coupled with wind farms in the presence of contingencies," Energy, Elsevier, vol. 255(C).
    11. Zhang, Mingyang & Zhou, Ming & Wu, Zhaoyuan & Yang, Hongji & Li, Gengyin, 2022. "A ramp capability-aware scheduling strategy for integrated electricity-gas systems," Energy, Elsevier, vol. 241(C).

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