Abstract

Renewable energy is gradually becoming an essential source of electricity supply. Due to the uncertainty of renewable energy, the power system operation faces very serious challenges. With the development of power market, the market mechanisms has become an important means to cope with the uncertainty of renewable energy generation. Aiming at the problem that the current reserve option design method for renewable energy generators is too idealized, this paper proposes an improved reserve option optimization model based on the Black-Scholes model. The least square method is used to build the option strike price based on historical data, and the double correlation factor model is used in the determination of the premium, which considers the dual uncertainty of renewable energy and market price. Network constraints are also added to the optimization model of option design. Simulation analysis verifies that the method is effective.

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