A Multi-Period Market Design for Markets With Intertemporal Constraints

The participation of renewable, energy storage, and resources with limited fuel inventory in electricity markets has created the need for optimal scheduling and pricing across multiple market intervals for resources with intertemporal constraints. In this paper, a new multi-period market model is pr...

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Bibliographic Details
Published inIEEE transactions on power systems Vol. 35; no. 4; pp. 3015 - 3025
Main Authors Zhao, Jinye, Zheng, Tongxin, Litvinov, Eugene
Format Journal Article
LanguageEnglish
Published New York IEEE 01.07.2020
The Institute of Electrical and Electronics Engineers, Inc. (IEEE)
Subjects
Couplings
Dams
Economic models
Efficiency
Energy storage
Futures market
Incentives
intertem-poral constraint
Multi-period scheduling and pricing
Optimal scheduling
Power system reliability
Pricing
ramping
Reliability
Schedules
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Summary:The participation of renewable, energy storage, and resources with limited fuel inventory in electricity markets has created the need for optimal scheduling and pricing across multiple market intervals for resources with intertemporal constraints. In this paper, a new multi-period market model is proposed to enhance the efficiency of markets with such type of resources. It is also the first market design that links a forward market and a spot market through the coordination of schedule and price under the multi-period paradigm, achieving reliability, economic efficiency and dispatch-following incentives simultaneously. The forward market solves a multi-period model with a long look-ahead time horizon whereas the spot market solves a series of multi-period dispatch and pricing problems with a shorter look-ahead time horizon on a rolling basis. By using the forward schedules and opportunity costs of intertemporal constraints as a guideline, the spot market model is able to produce economically efficient dispatch solutions as well as prices that incentivize dispatch following under the perfect forecast condition. The proposed scheme is applied to the dispatch and pricing of energy storage resources. Numerical experiments show that the proposed scheme outperforms the traditional myopic method in terms of economic efficiency, dispatch following and reliability.
ISSN:0885-8950
1558-0679
DOI:10.1109/TPWRS.2019.2963022