Optimal dispatch in a balancing market with intermittent renewable generation

Shinde, P, Hesamzadeh, M R, Date, P and Bunn, D W (2021) Optimal dispatch in a balancing market with intermittent renewable generation. IEEE Transactions on Power Systems, 36 (2). pp. 865-878. ISSN 0885-8950

Abstract

In this paper, three single-stage stochastic programs are proposed and compared for optimal dispatch by a System Operator (SO) into balancing markets (BM). The motivation for the models is to represent a possible requirement to undertake system balancing with increasing amounts of intermittent renewable generation. The proposed optimization models are reformulated as tractable Mixed Integer Linear Programs (MILPs) and these consider both fuel cost and intermittency cost of the generators, when the SO activates the up- or down-regulation bids. These three models are based on the main approaches seen in practice: dual-imbalance pricing, single imbalance pricing and single imbalance pricing with spot reversion. A scenario generation algorithm based on predictive conditional dynamic density distributions is also proposed. We perform a comparative analysis of these three proposed models in terms of how they help the SO to optimize their balancing market actions considering intermittent-renewable generators. The single imbalance pricing is found to be the most market efficient.