Abstract
The European Union defined ambitious targets for the production of energy from renewable energy sources. Most European markets trade now high levels of variable renewable energy (VRE). Renewable generation increases the variability and uncertainty of the net-load (i.e., demand minus VRE). To a large extent, this variability and uncertainty can be compensated by hydroelectric power plants. Typically, hydro power producers (HPPs) consider the periods of time with low market prices (and normally low demand and/or high VRE production) to pump, and the periods with high market prices (and normally high demand and/or low VRE production) to produce energy. This article presents a model for hydro power plants and a study to analyse the hydro-wind balance in a real-world setting, namely a simplified version of the Portuguese power system, involving a significant penetration of hydro and wind power (more than 50%). The study is conducted with the help of the multi-agent system MATREM. The results confirm (and rebut) the typical behavior of hydroelectric power plants (to produce energy, to pump water or to stay idle).
Highlights
The organization of the electricity sector was based on vertically integrated electric power companies, which produced, transported and distributed electrical energy without competition.Liberalization began in the earlier nineties and led to both wholesale markets, where producers provide energy to retailers, and retail markets, where retailers guarantee the delivery of energy to end-use customers
The bids that the ”generating companies (GenCos) WindPower” agent submits to the day-ahead market are limited to wind energy forecasts
After participating in the day-ahead market, the ‘’GenCo WindPower” agent may adjust the commitments made in the day-ahead markets (DAMs) by participating in the intra-day market (IDM)
Summary
The organization of the electricity sector was based on vertically integrated electric power companies, which produced, transported and distributed electrical energy without competition.Liberalization began in the earlier nineties and led to both wholesale markets, where producers provide energy to retailers, and retail markets, where retailers guarantee the delivery of energy to end-use customers (see [1,2]). The organization of the electricity sector was based on vertically integrated electric power companies, which produced, transported and distributed electrical energy without competition. Three major market models are often distinguished [3]: pools, bilateral contracts and hybrids models. Bilateral contracts are tradable arrangements of power between two parties. Such contracts have the advantage of price predictability (in comparison with uncertain pool prices). The hybrid model combines several characteristics of the previous two models. In this way, market participants can either trade power through pools or negotiate bilateral power supply agreements
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