Incorporate day-ahead robustness and real-time incentives for electricity market design

Guo, Yi; Han, Xuejiao; Zhou, Xinyang; Hug, Gabriela

doi:10.1016/j.apenergy.2022.120484

Incorporate day-ahead robustness and real-time incentives for electricity market design

Journal Article · Tue Dec 13 00:00:00 EST 2022 · Applied Energy

DOI:https://doi.org/10.1016/j.apenergy.2022.120484· OSTI ID:1908591

^[1]; ^[1]; Zhou, Xinyang ^[2]; Hug, Gabriela ^[1]

Eidgenoessische Technische Hochschule (ETH), Zurich (Switzerland)
National Renewable Energy Lab. (NREL), Golden, CO (United States)

In this paper, we propose a two-stage electricity market framework to explore the participation of distributed energy resources (DERs) in a day-ahead (DA) market and a real-time (RT) market. The objective is to determine the optimal bidding strategies of the aggregated DERs in the DA market and generate online incentive signals for DER-owners to optimize the social-welfare taking into account network operational constraints. Distributionally robust optimization is used to explicitly incorporate data-based statistical information of renewable forecasts into the supply/demand decisions in the DA market. We evaluate the conservativeness of bidding strategies distinguished by different risk aversion settings. In the RT market, a bi-level time-varying optimization problem is proposed to design the online incentive signals to tradeoff the RT imbalance penalty for distribution system operators (DSOs) and the costs of individual DER-owners. This enables tracking their optimal dispatch to provide fast balancing services, in the presence of time-varying network states while satisfying the voltage regulation requirement. Simulation results on both DA wholesale market and RT balancing market demonstrate the necessity of this two-stage design, and its robustness to uncertainties, the performance of convergence, the tracking ability and the feasibility of the resulting network operations.

View Accepted Manuscript (DOE)

Research Organization:: National Renewable Energy Laboratory (NREL), Golden, CO (United States)

Sponsoring Organization:: USDOE

Contributing Organization:: Eidgenössische Technische Hochschule (ETH)

Grant/Contract Number:: AC36-08GO28308

OSTI ID:: 1908591

Report Number(s):: NREL/JA-5D00-84942; MainId:85715; UUID:a43c8bc3-4c08-4fc5-a3b1-728dda3c015b; MainAdminID:68404

Journal Information:: Applied Energy, Journal Name: Applied Energy Vol. 332; ISSN 0306-2619

Publisher:: ElsevierCopyright Statement

Country of Publication:: United States

Language:: English

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Incorporate day-ahead robustness and real-time incentives for electricity market design

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