Abstract

Proactive participation of uncertain renewable generation in the day-ahead (DA) wholesale market effectively reduces the system marginal price and carbon emissions, whilst significantly increasing the volumes of real-time balancing mechanism prices to ensure system security and stability. To solve the conflicting interests over the two timescales, this article: 1) proposes a novel hierarchical optimization model to align with the actual operation paradigms of the hierarchical market, whereby the capacity allocation matrix is adopted to coordinate the DA and balancing markets; 2) mathematically formulates and quantitatively analyses the long-term driving factors of balancing actions, enabling system operators (SOs) to design efficient and well-functioning market structures to meet economic and environmental targets; 3) empowers renewable generating units and flexible loads to participate in the balancing market (BM) as 'active' actors and enforces the non-discriminatory provision of balancing services. The performance of the proposed model is validated on a modified IEEE 39-bus power system and a reduced GB network. Results reveal that with effective resource allocation in different timescales of the hierarchical market, the drop speed of balancing costs soars while the intermittent generation climbs. The proposed methodology enables SOs to make the most of all resources available in the market and balance the system flexibly and economically. It thus safeguards the climate mitigation pathways against the risks of substantially higher balancing costs.

Original languageEnglish
Pages (from-to)2448 - 2460
Number of pages13
JournalIEEE Transactions on Power Systems
Volume39
Issue number2
Early online date26 Jul 2023
DOIs
Publication statusPublished - 1 Mar 2024

Keywords

  • Balancing market
  • Costs
  • flexible load
  • Indexes
  • long-term driving factors
  • Pricing
  • Real-time systems
  • Renewable energy sources
  • Resource management
  • Vehicles

ASJC Scopus subject areas

  • Energy Engineering and Power Technology
  • Electrical and Electronic Engineering

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