An Integrated Framework for Effective Management of Delivery Risk in Electricity Markets: From Batteries to Insurance and Beyond
Net load imbalances due to imperfect day-ahead forecasts can cause variability in real-time electricity prices and higher system operations costs. We propose a novel market product called Flexibility Options that allow participants to hedge uncertainty by buying flexibility from flexible resources. Simulations show that flexibility options can reduce total system operating costs by up to 15% and can reduce variability in market participant revenues. To better quantify the flexibility that DER aggregators can provide, we develop DER flexibility scores that account for asset flexibility and uncertainty from occupant behavior and weather. Preliminary results show that realistic sets of DERs have significant variability in flexibility and uncertainty metrics.
- 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:
- 1995185
- Report Number(s):
- NREL/PO-6A40-85555; MainId:86328; UUID:1234f581-1b11-43cd-b587-d0382222293c; MainAdminID:70190
- Country of Publication:
- United States
- Language:
- English
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