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Exercise of Market Power on Ramp Rate in Wind-Integrated Power Systems
KTH, School of Electrical Engineering (EES), Electric Power Systems. (Electricity Market Research Group (EMReG))
KTH, School of Electrical Engineering (EES), Electric Power Systems. (Electricity Market Research Group (EMReG))
2015 (English)In: IEEE Transactions on Power Systems, ISSN 0885-8950, Vol. 30, no 3, 1614-1623 p.Article in journal (Refereed) Published
Abstract [en]

With an increasing penetration of wind power, there is likely to be an increasing need for fast-ramping generating units. These generators ensure that no load is lost if supply drops due to the uncertainties in wind power generation. However, it is observed in practice that, in a presence of network constraints, fast-ramping generating units are prone to act strategically and exercise market power by withholding their ramp rates. In this paper we model this gaming behavior on ramp rates. We assume a market operator who collects bids in form of marginal costs, quantities, and ramp rates. He runs a ramp-constrained economic dispatch given the generators' bids, forecasted demand, and contingencies. Following the game-theoretic concepts, we set up a multi-level optimization problem. The lower-level problem is the ramp-constrained economic dispatch and the higher-level represents the profit maximization problems solved by strategic generators. The whole problem is formulated as an equilibrium problem with equilibrium constraints (EPEC). The outcome of the EPEC problem is a set of Nash equilibria. To tackle the multiple Nash equilibria problem, the concept of the extremal-Nash equilibria is defined and formulated. We model the concept of extremal-Nash equilibria as a single-stage mixed-integer linear programming problem (MILP) and demonstrate the application of this mathematical framework on an illustrative case and on a more realistic case study with tractable results.

Place, publisher, year, edition, pages
2015. Vol. 30, no 3, 1614-1623 p.
National Category
Energy Systems
Research subject
Electrical Engineering
URN: urn:nbn:se:kth:diva-165341DOI: 10.1109/TPWRS.2014.2356255ISI: 000353641000053ScopusID: 2-s2.0-84928522523OAI: diva2:808097

QC 20150513

Available from: 2015-04-27 Created: 2015-04-27 Last updated: 2015-06-12Bibliographically approved

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