IDEAS home Printed from https://ideas.repec.org/p/arx/papers/2102.10098.html
   My bibliography  Save this paper

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

Author

Listed:
  • Hans Ole Riddervold
  • Ellen Krohn Aasg{aa}rd
  • Lisa Haukaas
  • Magnus Korp{aa}s

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 the 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

  • Hans Ole Riddervold & Ellen Krohn Aasg{aa}rd & Lisa Haukaas & Magnus Korp{aa}s, 2021. "Internal hydro- and wind portfolio optimisation in real-time market operations," Papers 2102.10098, arXiv.org.
    • Handle: RePEc:arx:papers:2102.10098
    as

    Download full text from publisher

    File URL: http://arxiv.org/pdf/2102.10098
    File Function: Latest version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    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.
    2. Jack Sarkissian, 2016. "Spread, volatility, and volume relationship in financial markets and market making profit optimization," Papers 1606.07381, arXiv.org.
    3. Vilim, Michael & Botterud, Audun, 2014. "Wind power bidding in electricity markets with high wind penetration," Applied Energy, Elsevier, vol. 118(C), pages 141-155.
    4. Naval, Natalia & Sánchez, Raul & Yusta, Jose M., 2020. "A virtual power plant optimal dispatch model with large and small-scale distributed renewable generation," Renewable Energy, Elsevier, vol. 151(C), pages 57-69.
    5. Wolfgang, Ove & Haugstad, Arne & Mo, Birger & Gjelsvik, Anders & Wangensteen, Ivar & Doorman, Gerard, 2009. "Hydro reservoir handling in Norway before and after deregulation," Energy, Elsevier, vol. 34(10), pages 1642-1651.
    6. 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.
    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. Yang Li & Ni Fang & Shengming He & Feng Wu & Outing Li & Linjun Shi & Renshan Ding, 2024. "Two-Stage Stochastic Scheduling of Cascaded Hydropower–Wind–Photovoltaic Hybrid Systems Considering Contract Decomposition and Spot Market," Sustainability, MDPI, vol. 16(3), pages 1-19, January.
    2. Jin, Xiaoyu & Liu, Benxi & Liao, Shengli & Cheng, Chuntian & Li, Gang & Liu, Lingjun, 2022. "Impacts of different wind and solar power penetrations on cascade hydroplants operation," Renewable Energy, Elsevier, vol. 182(C), pages 227-244.
    3. Zhou, Siyu & Han, Yang & Zalhaf, Amr S. & Chen, Shuheng & Zhou, Te & Yang, Ping & Elboshy, Bahaa, 2023. "A novel multi-objective scheduling model for grid-connected hydro-wind-PV-battery complementary system under extreme weather: A case study of Sichuan, China," Renewable Energy, Elsevier, vol. 212(C), pages 818-833.
    4. Jin, Xiaoyu & Liu, Benxi & Liao, Shengli & Cheng, Chuntian & Yan, Zhiyu, 2022. "A Wasserstein metric-based distributionally robust optimization approach for reliable-economic equilibrium operation of hydro-wind-solar energy systems," Renewable Energy, Elsevier, vol. 196(C), pages 204-219.
    5. 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).

    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. 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.
    2. Hosseini, Seyyed Ahmad & Toubeau, Jean-François & De Grève, Zacharie & Vallée, François, 2020. "An advanced day-ahead bidding strategy for wind power producers considering confidence level on the real-time reserve provision," Applied Energy, Elsevier, vol. 280(C).
    3. 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.
    4. Eicke, Anselm & Ruhnau, Oliver & Hirth, Lion, 2021. "Electricity balancing as a market equilibrium," EconStor Preprints 233852, ZBW - Leibniz Information Centre for Economics.
    5. Mazaher Haji Bashi & Gholamreza Yousefi & Claus Leth Bak & Jayakrishnan Radhakrishna Pillai, 2016. "Long Term Expected Revenue of Wind Farms Considering the Bidding Admission Uncertainty," Energies, MDPI, vol. 9(11), pages 1-17, November.
    6. Rancilio, G. & Rossi, A. & Falabretti, D. & Galliani, A. & Merlo, M., 2022. "Ancillary services markets in europe: Evolution and regulatory trade-offs," Renewable and Sustainable Energy Reviews, Elsevier, vol. 154(C).
    7. Viktorija Bobinaite & Artjoms Obushevs & Irina Oleinikova & Andrei Morch, 2018. "Economically Efficient Design of Market for System Services under the Web-of-Cells Architecture," Energies, MDPI, vol. 11(4), pages 1-29, March.
    8. Yin, Linfei & He, Xiaoyu, 2023. "Artificial emotional deep Q learning for real-time smart voltage control of cyber-physical social power systems," Energy, Elsevier, vol. 273(C).
    9. Bergler, Julian & Heim, Sven & Hüschelrath, Kai, 2017. "Strategic capacity withholding through failures in the German-Austrian electricity market," Energy Policy, Elsevier, vol. 102(C), pages 210-221.
    10. Graabak, Ingeborg & Wu, Qiuwei & Warland, Leif & Liu, Zhaoxi, 2016. "Optimal planning of the Nordic transmission system with 100% electric vehicle penetration of passenger cars by 2050," Energy, Elsevier, vol. 107(C), pages 648-660.
    11. Jack Sarkissian, 2020. "Quantum coupled-wave theory of price formation in financial markets: price measurement, dynamics and ergodicity," Papers 2002.04212, arXiv.org.
    12. Casimir Lorenz & Clemens Gerbaulet, 2017. "Wind Providing Balancing Reserves: An Application to the German Electricity System of 2025," Discussion Papers of DIW Berlin 1655, DIW Berlin, German Institute for Economic Research.
    13. Liao, Qi & Tu, Renfu & Zhang, Wan & Wang, Bohong & Liang, Yongtu & Zhang, Haoran, 2023. "Auction design for capacity allocation in the petroleum pipeline under fair opening," Energy, Elsevier, vol. 264(C).
    14. Farahmand, H. & Doorman, G.L., 2012. "Balancing market integration in the Northern European continent," Applied Energy, Elsevier, vol. 96(C), pages 316-326.
    15. Heike Scheben & Nikolai Klempp & Kai Hufendiek, 2020. "Impact of Long-Term Water Inflow Uncertainty on Wholesale Electricity Prices in Markets with High Shares of Renewable Energies and Storages," Energies, MDPI, vol. 13(9), pages 1-21, May.
    16. Chang-Gi Min & Jong Keun Park & Don Hur & Mun-Kyeom Kim, 2015. "The Economic Viability of Renewable Portfolio Standard Support for Offshore Wind Farm Projects in Korea," Energies, MDPI, vol. 8(9), pages 1-20, September.
    17. Doorman, Gerard L. & Frøystad, Dag Martin, 2013. "The economic impacts of a submarine HVDC interconnection between Norway and Great Britain," Energy Policy, Elsevier, vol. 60(C), pages 334-344.
    18. Baptiste François & Sara Martino & Lena S. Tøfte & Benoit Hingray & Birger Mo & Jean-Dominique Creutin, 2017. "Effects of Increased Wind Power Generation on Mid-Norway’s Energy Balance under Climate Change: A Market Based Approach," Energies, MDPI, vol. 10(2), pages 1-18, February.
    19. Li, Jinchao & Sun, Zihao & Niu, Xiaoxuan & Li, Shiwei, 2024. "Economic optimization scheduling of virtual power plants considering an incentive based tiered carbon price," Energy, Elsevier, vol. 305(C).
    20. Miranda, Rodolfo Farías & Salgado-Herrera, Nadia Maria & Rodríguez-Hernández, Osvaldo & Rodríguez-Rodríguez, Juan Ramon & Robles, Miguel & Ruiz-Robles, Dante & Venegas-Rebollar, Vicente, 2022. "Distributed generation in low-voltage DC systems by wind energy in the Baja California Peninsula, Mexico," Energy, Elsevier, vol. 242(C).

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:arx:papers:2102.10098. 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: arXiv administrators (email available below). General contact details of provider: http://arxiv.org/ .

    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.