• Title/Summary/Keyword: Reserve market

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Analysis on Power Transactions of Generation and Operating Reserve Based on Marginal Profits (한계이득 측면에서 분석한 발전 예비력 포함 전력거래)

  • Shin, Jae-Hong;Lee, Kwang-Ho
    • The Transactions of the Korean Institute of Electrical Engineers A
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    • v.55 no.10
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    • pp.440-445
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    • 2006
  • As an electricity industry transforms into a competitive system, an electricity market revolves into a combined market consisting of generation and operating reserve. This paper presents a market model combined by an energy market and an operating reserve market. In a competitive structure, Gencos strive to choose strategic bidding parameters that maximize total profit resulting from an energy market and a reserve market. The primary goal of the paper is to analyze power transactions of generation and operation reserve based on marginal profits and capacity limits at NE(Nash Equilibrium). In case studies, the reserve market and the energy market are compared at the n from the viewpoints of marginal profits, prices and transaction quantities. It is shown that the marginal profit in an energy market is equal to that in a reserve market, and Gencos strategic bidding is greatly influenced by capacity limit.

Optimal Dispatch of Energy and Frequency Regulation Reserve Considering Contingency in a Competitive Electricity Market (경쟁적 전력시장에서 상정사고를 고려한 에너지와 주파수 제어예비력의 최적배분 기법)

  • Lee, Ki-Song;Jeong, Yun-Won;Shin, Joong-Rin;Chun, Yeong-Han;Park, Jong-Bae
    • The Transactions of the Korean Institute of Electrical Engineers A
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    • v.55 no.5
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    • pp.202-213
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    • 2006
  • This paper presents a new approach for optimal dispatch of energy and frequency regulation reserve considering contingency in a competitive electricity market. It is necessary to introduce the reserve market with the spot energy market for operating efficiently and obtaining the security of the electricity market. However, the reserve market is closely connected with the energy market since the energy and reserve are produced from the same resources. Thus, it is inevitable to co-optimize the energy and ancillary service for efficient operation of energy and ancillary service market. Therefore, this paper proposes a new method for optimal dispatch of energy and frequency regulation reserve considering n-1 contingency of generator and transmission line using constraints and sensitivity based on AC power flow To verify the effectiveness of the proposed method, the numerical studies have been performed for 5-bus sample system and modified IEEE 14-bus system.

Modeling of an Electricity Market Including Operating Reserve and Analysis of Supplier's Bidding Strategies

  • Shin Jae-Hong;Lee Kwang-Ho
    • KIEE International Transactions on Power Engineering
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    • v.5A no.4
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    • pp.396-402
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    • 2005
  • In an electricity market with imperfect competition, participants devise bidding plans and transaction strategies to maximize their own profits. The market price and the quantity are concerned with the operation reserve as well as the bidding system and demand curves in an electricity market. This paper presents a market model combined by an energy market and an operating reserve market. The competition of the generation producers in the combined market is formulated as a gaming of selecting bid parameters such as intersections and slopes in bid functions. The Nash Equilibrium (NE) is analyzed by using bi-level optimization; maximization of Social Welfare (SW) and maximization of the producers' profits.

A Study on the Assessment of Reasonable Reserve Margin in Basic Plan of Electricity Supply and Demand (전력수급기본계획의 적정 설비예비율 산정 개선방안)

  • Kim, C.S.;Rhee, C.H.
    • Proceedings of the KIEE Conference
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    • 2006.07a
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    • pp.418-419
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    • 2006
  • After electricity power industry restructuring, "Long term power development plan", setting up by government, is replaced by "Basic plan of electricity supply and demand". In this basic plan, one of the most important factors is assessment of appropriate capacity margin. The benefit of GENCO is decided by the market price, and the price is largely affected by the level of reserve margin. As a consequence, appropriate reserve margin is determined by market power. However, Cost Based Pool(CBP) is a limited competitive market, and government policy for supply and demand is very important factor or reserve margin determination. This paper points out issues about existing reserve margin assessment method which is used in basic plan and suggests improved assessment method. In the case study, capacity margin is calculated by proposed assessment method and result shows the advantages of suggested method.

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A Study on the Supplier's Bidding Strategy Including Operating Reserve in an Electricity Market (발전 예비력을 포함한 전력시장에서의 공급자 입찰전략 연구)

  • Lee Kwang-Ho;Shin Jae-Hong
    • The Transactions of the Korean Institute of Electrical Engineers A
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    • v.54 no.4
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    • pp.199-204
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    • 2005
  • In an electricity market with an imperfect competition, participants make plans of bidding and transaction strategies to maximize their own profits. The market price and the quantity are concerned with the operation reserve as well as the bidding system and demand curves in an electricity market. This paper presents a market model combined by an energy market and an operating reserve market. The competition of the generation producers in the combined market is formulated as a gaming of selecting bid parameters such as intersections and slopes in bid functions. The Nash Equilibrium(NE) is analyzed by using a hi-level optimization; maximization of Social Welfare(SW) and maximization of the producers' profits.

Operation Planning of Reserve in Microgrid Considering Market Participation and Energy Storage System

  • Lee, Si Young;Jin, Young Gyu;Kim, Sun Kyo;Yoon, Yong Tae
    • Journal of Electrical Engineering and Technology
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    • v.9 no.3
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    • pp.1089-1095
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    • 2014
  • Innumerable microgrids would be operated independently by individual operators in a future smart grid. This kind of decentralized power system requires entirely different operation scheme in the actual power system and electricity market operation. Especially, frequency regulation is very important for successive energy trade in this multi-microgrid circumstance. This paper presents an optimal energy and reserve market participation strategy and operation strategy of energy storage system (ESS) by a microgrid operator (MGO). For definite evaluation of the proposed strategy, we postulate that the MGO should participate in the Power Exchange for Frequency Control (PXFC) market, which was devised by Maria Ilic and her coworkers and is suitable to the decentralized operation circumstances. In particular, optimal reserve capacity of the frequency control market and optimal market participation ratio of ESS between frequency control market and energy market are derived theoretically and evaluated by simulations utilizing Nordic Pool Elspot price data.

A Study on Operation Standards for Optimal Operating Reserve in Electricity Market (전력시장에서의 적정 운영예비력 기준에 관한 연구)

  • 류성호;이강완;김광원;황갑주
    • The Transactions of the Korean Institute of Electrical Engineers A
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    • v.52 no.5
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    • pp.287-293
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    • 2003
  • The deregulation and structural reform of power markets have started from the early 90s, which has brought about new studies on the new environment. Regardless the market structure, however, power systems need to be operated and planned in a stable and reliable manner. Therefore, decisions on proper amount of operating reserves and their reliable operations are very important. Up to now, the decision processes of operating reserves depend mainly on experiences of operators in Korea. When Korean power market comes under private management, operating reserves would influence power rate as well as power Quality, Therefore, it is time to prepare reasonable operating reserve standards in a systematic way for the new environment. This study suggests the proper operating reserve standards considering rules of the power market in Korea. To verify the adequacy of the proposed standards, stability and frequency characteristics of the Korean power system are analyzed as well.

Determination of Secondary Reserve Requirement Through Interaction-dependent Clearance Between Ex-ante and Ex-post

  • Kim, Sun Kyo;Park, Joon-Hyung;Yoon, Yong Tae
    • Journal of Electrical Engineering and Technology
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    • v.9 no.1
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    • pp.71-79
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    • 2014
  • This paper discusses a method for the determination of frequency control reserve requirement with consideration of the interaction between ex-ante planning and real-time balancing. In proposed method, we consider the fact that the delivered energy for tertiary control reserve is determined based on required capacity for secondary control reserve and the expected amount of load errors. Uncertain load errors are derived by Brownian motion, an optimization method is suggested using a stochastic programming. In a short, we propose an interactive dependent method for determining secondary control reserve requirement based on the principle that it satisfies to minimize the total cost. As a result, this paper provides will analyze for an example model to demonstrate the capabilities of the method.

A Study on Supplier's Bidding Strategies including Operating Reserve inan Electricity Market (발전 예비력을 포함한 전력시장에서의 공급자 입찰전략 연구)

  • Shin Jae Hong;Choi Seok Keun;Lee Kwang Ho
    • Proceedings of the KIEE Conference
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    • summer
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    • pp.713-715
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    • 2004
  • In an electricity market with an imperfect competition, participants make plans of biddings and transaction strategies to maximize their own profits. The market price and the quantity are concerned with the operation reserve as well as the bidding system and demand curves in an electricity market. This paper presents a model of the combined market , energy market and operating teserve market. The Nash equilibrium is analyzed by using a hi-level optimization , maximization of Social welfare (SW) and maximization of the producers' profits.

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Analysis of Pool Price and Generators Revenue from Capacity Margin in Competitive Market (경쟁시장에서 설비예비율에 따른 Pool가격과 발전사업자 수익분석)

  • Kim, Chang-Su;Baek, Yeong-Sik;Lee, Chang-Ho
    • The Transactions of the Korean Institute of Electrical Engineers A
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    • v.51 no.6
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    • pp.269-275
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    • 2002
  • Recently, Korea's electric industry has experienced substantial changes in its structure and function including the introduction of competition in the generation sector. Korea is in the early stages of market competition where the market price is determined by generation costs. In the future, the market Price will be determined by generators'bids. Therefore, the generators'profit is determined by market pool price, the prospects of pool price are very important for new capacity investment decision made by generators and IPPS. This study analyzes hourly marginal costs and LOLP considering basic generation mix and characteristics develops the relationship of pool price and Profit by generation-type using the change in reserve margin, and proposes basic direction for profits variation and supply-demand analysis in the electricity market in future.