Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
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))ORCID iD: 0000-0002-6973-3726
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, E-ISSN 1558-0679, 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
Identifiers
URN: urn:nbn:se:kth:diva-165341DOI: 10.1109/TPWRS.2014.2356255ISI: 000353641000053Scopus ID: 2-s2.0-84928522523OAI: oai:DiVA.org:kth-165341DiVA: diva2:808097
Note

QC 20150513

Available from: 2015-04-27 Created: 2015-04-27 Last updated: 2017-12-04Bibliographically approved
In thesis
1. Impact of High levels of Wind Penetration on the Exercise of Market Power in the Multi-Area Systems
Open this publication in new window or tab >>Impact of High levels of Wind Penetration on the Exercise of Market Power in the Multi-Area Systems
2017 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

New European energy policies have set a goal of a high share of renewable energy in electricity markets. In the presence of high levels of renewable generation, and especially wind, there is more uncertainty in the supply. It is natural, that volatility in energy production induces the volatility in energy prices. This can create incentives for the generators to exercise market power by traditional means: withholding the output by conventional generators, bidding not the true marginal costs, or using locational market power. In addition, a new type of market power has been recently observed: exercise of market power on ramp rate. This dissertation focuses on modeling the exercise of market power in power systems with high penetration of wind power. The models consider a single, or multiple profit-maximizing generators. Flexibility is identified as one of the major issues in wind-integrated power systems. Therefore, part of the research studies the behavior of strategic hydropower producers as main providers of flexibility in systems, where hydropower is available.Developed models are formulated as mathematical and equilibrium problems with equilibrium constraints (MPECs and EPECs). The models are recast as mixed-integer linear programs (MILPs) using discretization. Resulting MILPs can be solved directly by commercially-available MILP solvers, or by applying decomposition. Proposed Modified Benders Decomposition Algorithm (MBDA) significantly improves the computational efficiency.

Place, publisher, year, edition, pages
Stockholm: KTH Royal Institute of Technology, 2017. 95 p.
Series
TRITA 2017:047, ISSN 1653-5146
Keyword
wind integration, market power, game theory, mathematical programming
National Category
Other Electrical Engineering, Electronic Engineering, Information Engineering
Research subject
Electrical Engineering
Identifiers
urn:nbn:se:kth:diva-207090 (URN)978-91-7729-434-4 (ISBN)
Public defence
2017-06-13, Kollegiesalen, Brinellvägen 8, Stockholm, 10:00 (English)
Opponent
Supervisors
Note

QC 20170516

Available from: 2017-05-16 Created: 2017-05-15 Last updated: 2017-06-13Bibliographically approved

Open Access in DiVA

No full text

Other links

Publisher's full textScopus

Search in DiVA

By author/editor
Moiseeva, EkaterinaHesamzadeh, Mohammad Reza
By organisation
Electric Power Systems
In the same journal
IEEE Transactions on Power Systems
Energy Systems

Search outside of DiVA

GoogleGoogle Scholar

doi
urn-nbn

Altmetric score

doi
urn-nbn
Total: 60 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf