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Title: Capacity Market Model Considering Flexible Resource Requirements: Preprint

Abstract

With increasing installations of renewable generation, such as wind and solar, electric power systems need significant amounts of flexible resources to provide fast responses to mitigate the additional variability and uncertainty in generation. Current market designs have been shown to be insufficient in their mechanisms to compensate flexible resources for their services. Ancillary service markets can cover some of these costs, but they are likely not enough to attract additional flexible resources into the system. Although some independent system operators have started to design markets for flexible resources, their focus is on the short-term operating time horizon. This time horizon has significant real-time price uncertainties for flexible resources and might provide insufficient motivation for them to participate in the market. The capacity market has traditionally been the incentive to invest in new generation resources. Therefore, if a system needs new flexible resources, it is necessary to introduce flexible resource requirements into the capacity market to directly attract more flexible resource investment. This paper proposes a simplified capacity market model including flexible resource requirements. Case studies are examined to validate the proposed method.

Authors:
ORCiD logo [1];  [1];  [2]
  1. National Renewable Energy Laboratory (NREL), Golden, CO (United States)
  2. University of Tennessee
Publication Date:
Research Org.:
National Renewable Energy Lab. (NREL), Golden, CO (United States)
Sponsoring Org.:
USDOE Office of Energy Efficiency and Renewable Energy (EERE), Wind and Water Technologies Office (EE-4W)
OSTI Identifier:
1478727
Report Number(s):
NREL/CP-5D00-70162
DOE Contract Number:  
AC36-08GO28308
Resource Type:
Conference
Resource Relation:
Conference: Presented at the IEEE Power and Energy Society General Meeting, 5-10 August 2018, Portland, Oregon
Country of Publication:
United States
Language:
English
Subject:
17 WIND ENERGY; flexible resources; capacity market; wind uncertainty

Citation Formats

Fang, Xin, Hodge, Brian S, and Li, Fangxing. Capacity Market Model Considering Flexible Resource Requirements: Preprint. United States: N. p., 2018. Web.
Fang, Xin, Hodge, Brian S, & Li, Fangxing. Capacity Market Model Considering Flexible Resource Requirements: Preprint. United States.
Fang, Xin, Hodge, Brian S, and Li, Fangxing. Thu . "Capacity Market Model Considering Flexible Resource Requirements: Preprint". United States. https://www.osti.gov/servlets/purl/1478727.
@article{osti_1478727,
title = {Capacity Market Model Considering Flexible Resource Requirements: Preprint},
author = {Fang, Xin and Hodge, Brian S and Li, Fangxing},
abstractNote = {With increasing installations of renewable generation, such as wind and solar, electric power systems need significant amounts of flexible resources to provide fast responses to mitigate the additional variability and uncertainty in generation. Current market designs have been shown to be insufficient in their mechanisms to compensate flexible resources for their services. Ancillary service markets can cover some of these costs, but they are likely not enough to attract additional flexible resources into the system. Although some independent system operators have started to design markets for flexible resources, their focus is on the short-term operating time horizon. This time horizon has significant real-time price uncertainties for flexible resources and might provide insufficient motivation for them to participate in the market. The capacity market has traditionally been the incentive to invest in new generation resources. Therefore, if a system needs new flexible resources, it is necessary to introduce flexible resource requirements into the capacity market to directly attract more flexible resource investment. This paper proposes a simplified capacity market model including flexible resource requirements. Case studies are examined to validate the proposed method.},
doi = {},
journal = {},
number = ,
volume = ,
place = {United States},
year = {2018},
month = {10}
}

Conference:
Other availability
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