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U.S. Department of Energy
Office of Scientific and Technical Information

Flexibility Auctions: A Framework for Managing Imbalance Risk

Conference ·
OSTI ID:1843829
As the electricity generated by variable resources grows, system operators and variable resources have to manage challenging imbalances between forward and real-time markets. The Flexibility Auction is a novel approach for managing imbalances as it will allow resources with imbalance risk to hedge their production by buying flexibility options. The flexibility options are offered by grid-connected resources that can provide physical flexibility. This presentation will focus on the design of the Flexibility Auction, its properties, and how it can complement system-level services such as CAISO's proposed imbalance reserves. The presentation will include simple examples to illustrate the impact of the Flexibility Auction on the market participants and the system's imbalance risk.
Research Organization:
National Renewable Energy Laboratory (NREL), Golden, CO (United States)
Sponsoring Organization:
USDOE Advanced Research Projects Agency - Energy (ARPA-E)
DOE Contract Number:
AC36-08GO28308;
OSTI ID:
1843829
Report Number(s):
NREL/PR-5D00-80321; MainId:42524; UUID:67243be8-9615-4116-aea5-b56d80c8e299; MainAdminID:63743
Conference Information:
Presented at the FERC Technical Conference on Increasing Real-Time and Day-Ahead Market Efficiency through Improved Software, 23 June 2021
Country of Publication:
United States
Language:
English