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Title: Market protocols in ERCOT and their effect on wind generation

Abstract

Integrating wind generation into power systems and wholesale electricity markets presents unique challenges due to the characteristics of wind power, including its limited dispatchability, variability in generation, difficulty in forecasting resource availability, and the geographic location of wind resources. Texas has had to deal with many of these issues beginning in 2002 when it restructured its electricity industry and introduced aggressive renewable portfolio standards that helped spur major investments in wind generation. In this paper we discuss the issues that have arisen in designing market protocols that take account of these special characteristics of wind generation and survey the regulatory and market rules that have been developed in Texas. We discuss the perverse incentives some of the rules gave wind generators to overschedule generation in order to receive balancing energy payments, and steps that have been taken to mitigate those incentive effects. Lastly, we discuss more recent steps taken by the market operator and regulators to ensure transmission capacity is available for new wind generators that are expected to come online in the future.

Authors:
 [1];  [2]
  1. The Ohio State Univ., Columbus, OH (United States)
  2. National Renewable Energy Lab. (NREL), Golden, CO (United States)
Publication Date:
Research Org.:
National Renewable Energy Lab. (NREL), Golden, CO (United States)
Sponsoring Org.:
USDOE Office of Energy Efficiency and Renewable Energy (EERE)
OSTI Identifier:
1353225
Grant/Contract Number:  
AC36-08GO28308
Resource Type:
Accepted Manuscript
Journal Name:
Energy Policy
Additional Journal Information:
Journal Volume: 38; Journal Issue: 7; Journal ID: ISSN 0301-4215
Publisher:
Elsevier
Country of Publication:
United States
Language:
English
Subject:
17 WIND ENERGY; 24 POWER TRANSMISSION AND DISTRIBUTION; wind integration; reliability; transmission operation

Citation Formats

Sioshansi, Ramteen, and Hurlbut, David. Market protocols in ERCOT and their effect on wind generation. United States: N. p., 2009. Web. doi:10.1016/j.enpol.2009.07.046.
Sioshansi, Ramteen, & Hurlbut, David. Market protocols in ERCOT and their effect on wind generation. United States. doi:10.1016/j.enpol.2009.07.046.
Sioshansi, Ramteen, and Hurlbut, David. Sat . "Market protocols in ERCOT and their effect on wind generation". United States. doi:10.1016/j.enpol.2009.07.046. https://www.osti.gov/servlets/purl/1353225.
@article{osti_1353225,
title = {Market protocols in ERCOT and their effect on wind generation},
author = {Sioshansi, Ramteen and Hurlbut, David},
abstractNote = {Integrating wind generation into power systems and wholesale electricity markets presents unique challenges due to the characteristics of wind power, including its limited dispatchability, variability in generation, difficulty in forecasting resource availability, and the geographic location of wind resources. Texas has had to deal with many of these issues beginning in 2002 when it restructured its electricity industry and introduced aggressive renewable portfolio standards that helped spur major investments in wind generation. In this paper we discuss the issues that have arisen in designing market protocols that take account of these special characteristics of wind generation and survey the regulatory and market rules that have been developed in Texas. We discuss the perverse incentives some of the rules gave wind generators to overschedule generation in order to receive balancing energy payments, and steps that have been taken to mitigate those incentive effects. Lastly, we discuss more recent steps taken by the market operator and regulators to ensure transmission capacity is available for new wind generators that are expected to come online in the future.},
doi = {10.1016/j.enpol.2009.07.046},
journal = {Energy Policy},
number = 7,
volume = 38,
place = {United States},
year = {2009},
month = {8}
}

Journal Article:
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Cited by: 19 works
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