Capacity Auction Mechanism Considering Flexiblility Constraints and Battery Energy Storage

Abstract

Increasing penetration of renewables require ade-quate flexible resources to handle significant uncertainty. The current capacity market lacks a clearing mechanism for the flexibility capacity, and causes consumers to bear extra cost on additional flexible resources. Designing a fair and reason-able clearing and repayment mechanism for flexible resources is challenging, especially for newly market participants with complicated temporarily and dynamics, such as energy storage. This paper designs a novel capacity market model that involves demands of flexible ramping resource. Firstly, a ramp resource constraint is established based on historical data of wind and solar generations. Then, a reasonable clearing mechanism is designed to promote the investment and construction of energy storage. Case studies on realistic power systems verified that the proposed model guarantees the benefit of flexible units, and enables adequate ramp capabilities.