Abstract
The increasing deployments of renewable generation methods, such as wind, affects the flexibility of electric power system operating due to their inherent variability and uncertainty. To mitigate this, power systems need flexible resources. This paper investigates the potential for wind power to provide flexible ramping products in the real-time market, an additional value stream to the energy it provides. The proposed model for wind power’s strategic offering is formulated as a bi-level optimization problem with wind profit maximization at the upper level and the independent system operator’s economic dispatch—considering both the energy balance and the flexible ramping requirement to counter uncertainty—at the lower level. This bi-level model is converted to a mathematical program with equilibrium constraints (MPEC) by recasting the lower level problem with its Karush–Kuhn–Tucker optimality conditions. Then, through strong duality theory and the big-M method, the MPEC model is converted to a mixed-integer linear programming model. The opportunity cost and the price for wind power-providing ramping products are analyzed. Numerical examples based on a 5-bus network are presented to verify the proposed model and concept.
Highlights
Variable renewable energy integration is increasingly changing the generation portfolio of electric power systems in the United States and other countries [1]
In the real-time markets, flexible ramp capacity is procured by adding ramp requirements to the deterministic real-time economic dispatch (RTED) models [8], such that the ramp product is co-optimized with energy and other ancillary services in the market
This paper develops a strategic offering model for wind power by proposing a bi-level optimization model with wind power profit maximization at the upper level and the independent system operators (ISOs)’s RTED co-optimization of energy and ramp requirements at the lower level
Summary
Variable renewable energy integration is increasingly changing the generation portfolio of electric power systems in the United States and other countries [1]. It is necessary to analyze the impact of a flexible ramping service from wind power from the viewpoints of the wind power producer (i.e., their revenues) and to devise strategic wind power offers in the real-time market for both energy and ramping products. To this effect, this paper develops a strategic offering model for wind power by proposing a bi-level optimization model with wind power profit maximization at the upper level and the ISO’s RTED co-optimization of energy and ramp requirements at the lower level.
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