Optimization of Forward Electricity Markets Considering Wind Generation and Demand Response

This paper presents a new two-step design approach of forward electricity markets, which is highly penetrated with intermittent energy sources, such as wind power, and Demand Response (DR) programs. First, an optimal market timeframe is determined that balances between generation forecast accuracy a...

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Bibliographic Details
Published inIEEE transactions on smart grid Vol. 5; no. 3; pp. 1254 - 1261
Main Authors Jiankang Wang, Kennedy, Scott W., Kirtley, James L.
Format Journal Article
LanguageEnglish
Published Piscataway IEEE 01.05.2014
The Institute of Electrical and Electronics Engineers, Inc. (IEEE)
Subjects
Cost function
Electricity supply industry
Energy management
Generators
Load management
power generation economics
power system economics
Power systems
Wind forecasting
Wind power generation
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Summary:This paper presents a new two-step design approach of forward electricity markets, which is highly penetrated with intermittent energy sources, such as wind power, and Demand Response (DR) programs. First, an optimal market timeframe is determined that balances between generation forecast accuracy and customers' responding flexibility, in order to achieve a minimum system cost in forward and reserve energy markets. The timeframe obtained is used as a known parameter in the subsequent design of forward market price. End users' scheduling strategies modeled by price elasticity matrices along with current system conditions are considered in the price calculation process, during which the system cost of the forward energy market is minimized.
ISSN:1949-3053
1949-3061
DOI:10.1109/TSG.2014.2298035