Offering of Variable Resources in Regulation Markets with Performance Targets: An Analysis

Spyrou, Elina; King, Jennifer; Corbus, David; Zhang, Yingchen; Gevorgian, Vahan

doi:10.1109/tste.2022.3165150

Title: Offering of Variable Resources in Regulation Markets with Performance Targets: An Analysis

Abstract

To date, wind and solar power plants have mainly provided energy. Going forward, with the application of appropriate controls, they can offer additional grid services, such as regulating reserves. Additional grid services can present an opportunity for additional value streams to wind and solar power plants. However, the additional value might not be realized when operator-determined performance targets and settlement adjustments for the delivery of regulation capacity are disregarded. Additionally, this article studies the participation of variable resources in centralized regulation markets. We derive analytical results for regulation offers in terms of quantity and price considering that a variable resource does not want to risk being disqualified as a regulation provider, incurring losses, or foregoing more profitable opportunities. Our analysis suggests that U.S. operator-determined performance targets impose an upper bound on the quantity of a variable resource’s regulation offer; and settlement adjustments for the delivery of regulation affect the price at which variable resources offer and the calculations of opportunity costs in case of imperfect regulation delivery.

Authors:

Spyrou, Elina ^[1];

^[2]; Corbus, David ^[1]; Zhang, Yingchen ^[1]; Gevorgian, Vahan ^[1]

National Renewable Energy Lab. (NREL), Golden, CO (United States). Power Systems Engineering Center
National Renewable Energy Lab. (NREL), Golden, CO (United States). National Wind Technology Center

Publication Date:: Mon Apr 18 00:00:00 EDT 2022

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

Sponsoring Org.:: USDOE Office of Energy Efficiency and Renewable Energy (EERE), Renewable Power Office. Wind Energy Technologies Office

OSTI Identifier:: 1868490

Report Number(s):: NREL/JA-5D00-79773
Journal ID: ISSN 1949-3029; MainId:36993;UUID:b432c337-3032-4166-ab35-9c079c18e46c;MainAdminID:64101

Grant/Contract Number:: AC36-08GO28308

Resource Type:: Accepted Manuscript

Journal Name:: IEEE Transactions on Sustainable Energy

Additional Journal Information:: Journal Volume: 13; Journal Issue: 3; Journal ID: ISSN 1949-3029

Publisher:: IEEE

Country of Publication:: United States

Language:: English

Subject:: 24 POWER TRANSMISSION AND DISTRIBUTION; bid curve; performance targets; power plant operations; power system operations; regulation; solar power plants; supply offer; uncertainty; wind power plants

Citation Formats


                    Spyrou, Elina, King, Jennifer, Corbus, David, Zhang, Yingchen, and Gevorgian, Vahan. Offering of Variable Resources in Regulation Markets with Performance Targets: An Analysis.  United States: N. p., 2022. 
Web.  doi:10.1109/tste.2022.3165150.

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                    Spyrou, Elina, King, Jennifer, Corbus, David, Zhang, Yingchen, & Gevorgian, Vahan. Offering of Variable Resources in Regulation Markets with Performance Targets: An Analysis.  United States.  https://doi.org/10.1109/tste.2022.3165150

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                    Spyrou, Elina, King, Jennifer, Corbus, David, Zhang, Yingchen, and Gevorgian, Vahan. Mon .  
"Offering of Variable Resources in Regulation Markets with Performance Targets: An Analysis".  United States.  https://doi.org/10.1109/tste.2022.3165150.  https://www.osti.gov/servlets/purl/1868490.

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@article{osti_1868490,

  title        = {Offering of Variable Resources in Regulation Markets with Performance Targets: An Analysis},

  author       = {Spyrou, Elina and King, Jennifer and Corbus, David and Zhang, Yingchen and Gevorgian, Vahan},

  abstractNote = {To date, wind and solar power plants have mainly provided energy. Going forward, with the application of appropriate controls, they can offer additional grid services, such as regulating reserves. Additional grid services can present an opportunity for additional value streams to wind and solar power plants. However, the additional value might not be realized when operator-determined performance targets and settlement adjustments for the delivery of regulation capacity are disregarded. Additionally, this article studies the participation of variable resources in centralized regulation markets. We derive analytical results for regulation offers in terms of quantity and price considering that a variable resource does not want to risk being disqualified as a regulation provider, incurring losses, or foregoing more profitable opportunities. Our analysis suggests that U.S. operator-determined performance targets impose an upper bound on the quantity of a variable resource’s regulation offer; and settlement adjustments for the delivery of regulation affect the price at which variable resources offer and the calculations of opportunity costs in case of imperfect regulation delivery.},

  doi          = {10.1109/tste.2022.3165150},

  journal      = {IEEE Transactions on Sustainable Energy},

  number       = 3,

  volume       = 13,

  place        = {United States},

  year         = {Mon Apr 18 00:00:00 EDT 2022},

  month        = {Mon Apr 18 00:00:00 EDT 2022}

}

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Works referenced in this record:

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Title: Offering of Variable Resources in Regulation Markets with Performance Targets: An Analysis

Abstract

Citation Formats

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