IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v212y2018icp1360-1376.html
   My bibliography  Save this article

Resource adequacy risks to the bulk power system in North America

Author

Listed:
  • Murphy, Sinnott
  • Apt, Jay
  • Moura, John
  • Sowell, Fallaw

Abstract

To keep the electric power system reliable, grid operators procure reserve generation capacity to protect against generator failures and significant deviation from the load forecast. Current methods for determining reserve requirements use historical generator availability data (recorded as failure events) to compute the fraction of the time each unit in the power system was unavailable unexpectedly. These values are then combined using analytical or simulation methods to yield a distribution of available capacity. From this distribution, the reserve capacity needed to maintain a particular reliability target may be determined. Such an approach implicitly assumes that generator failures occur independently of one another and that generator availability is not seasonal.

Suggested Citation

  • Murphy, Sinnott & Apt, Jay & Moura, John & Sowell, Fallaw, 2018. "Resource adequacy risks to the bulk power system in North America," Applied Energy, Elsevier, vol. 212(C), pages 1360-1376.
  • Handle: RePEc:eee:appene:v:212:y:2018:i:c:p:1360-1376
    DOI: 10.1016/j.apenergy.2017.12.097
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261917318202
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.apenergy.2017.12.097?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Borenstein, Severin & Bushnell, James & Wolak, Frank, 2002. "Measuring Market Inefficiencies in California's Deregulated Electricity Industry," Staff General Research Papers Archive 13136, Iowa State University, Department of Economics.
    2. Kathleen Spees & Samuel A. Newell & Johannes P. Pfeifenberger, 2013. "Capacity Markets - Lessons Learned from the First Decade," Economics of Energy & Environmental Policy, International Association for Energy Economics, vol. 0(Number 2).
    3. Andrew Patton & Dimitris Politis & Halbert White, 2009. "Correction to “Automatic Block-Length Selection for the Dependent Bootstrap” by D. Politis and H. White," Econometric Reviews, Taylor & Francis Journals, vol. 28(4), pages 372-375.
    4. Hayfield, Tristen & Racine, Jeffrey S., 2008. "Nonparametric Econometrics: The np Package," Journal of Statistical Software, Foundation for Open Access Statistics, vol. 27(i05).
    5. Lueken, Roger & Apt, Jay & Sowell, Fallaw, 2016. "Robust resource adequacy planning in the face of coal retirements," Energy Policy, Elsevier, vol. 88(C), pages 371-388.
    6. Severin Borenstein & James B. Bushnell & Frank A. Wolak, 2002. "Measuring Market Inefficiencies in California's Restructured Wholesale Electricity Market," American Economic Review, American Economic Association, vol. 92(5), pages 1376-1405, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lavin, Luke & Murphy, Sinnott & Sergi, Brian & Apt, Jay, 2020. "Dynamic operating reserve procurement improves scarcity pricing in PJM," Energy Policy, Elsevier, vol. 147(C).
    2. Lai, Qiupin & Liu, Chengxi & Sun, Kai, 2021. "Vulnerability assessment for voltage stability based on solvability regions of decoupled power flow equations," Applied Energy, Elsevier, vol. 304(C).
    3. Murphy, Sinnott & Sowell, Fallaw & Apt, Jay, 2019. "A time-dependent model of generator failures and recoveries captures correlated events and quantifies temperature dependence," Applied Energy, Elsevier, vol. 253(C), pages 1-1.
    4. Murphy, Sinnott & Lavin, Luke & Apt, Jay, 2020. "Resource adequacy implications of temperature-dependent electric generator availability," Applied Energy, Elsevier, vol. 262(C).
    5. Sun, Yinong & Frew, Bethany & Dalvi, Sourabh & Dhulipala, Surya C., 2022. "Insights into methodologies and operational details of resource adequacy assessment: A case study with application to a broader flexibility framework," Applied Energy, Elsevier, vol. 328(C).
    6. Chen, Tao & Pipattanasomporn, Manisa & Rahman, Imran & Jing, Zejia & Rahman, Saifur, 2020. "MATPLAN: A probability-based planning tool for cost-effective grid integration of renewable energy," Renewable Energy, Elsevier, vol. 156(C), pages 1089-1099.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yao, Xin & Huang, Ruting & Du, Kerui, 2019. "The impacts of market power on power grid efficiency: Evidence from China," China Economic Review, Elsevier, vol. 55(C), pages 99-110.
    2. Moore, J. & Woo, C.K. & Horii, B. & Price, S. & Olson, A., 2010. "Estimating the option value of a non-firm electricity tariff," Energy, Elsevier, vol. 35(4), pages 1609-1614.
    3. Newbery, David M. & Greve, Thomas, 2017. "The strategic robustness of oligopoly electricity market models," Energy Economics, Elsevier, vol. 68(C), pages 124-132.
    4. Simshauser, Paul, 2024. "On static vs. dynamic line ratings in renewable energy zones," Energy Economics, Elsevier, vol. 129(C).
    5. David P. Brown & Andrew Eckert & Douglas Silveira, 2023. "Strategic interaction between wholesale and ancillary service markets," Competition and Regulation in Network Industries, , vol. 24(4), pages 174-198, December.
    6. Bunn, Derek W. & Chen, Dipeng, 2013. "The forward premium in electricity futures," Journal of Empirical Finance, Elsevier, vol. 23(C), pages 173-186.
    7. Fowlie, Meredith & Perloff, Jeffrey M., 2004. "The Effect of Pollution Permit Allocations on Firm-Level Emissions," CUDARE Working Papers 25116, University of California, Berkeley, Department of Agricultural and Resource Economics.
    8. Leautier, Thomas-Olivier, 2018. "On the long-term impact price caps: Investment, uncertainty, imperfect competition, and rationing," International Journal of Industrial Organization, Elsevier, vol. 61(C), pages 53-95.
    9. Paul Klemperer, 2007. "Bidding Markets," Journal of Competition Law and Economics, Oxford University Press, vol. 3(1), pages 1-47.
    10. Simshauser, P., 2020. "Merchant utilities and boundaries of the firm: vertical integration in energy-only markets," Cambridge Working Papers in Economics 2039, Faculty of Economics, University of Cambridge.
    11. Brown, David P. & Eckert, Andrew & Shaffer, Blake, 2023. "Evaluating the impact of divestitures on competition: Evidence from Alberta’s wholesale electricity market," International Journal of Industrial Organization, Elsevier, vol. 89(C).
    12. Bajo-Buenestado, Raúl, 2017. "Welfare implications of capacity payments in a price-capped electricity sector: A case study of the Texas market (ERCOT)," Energy Economics, Elsevier, vol. 64(C), pages 272-285.
    13. Woo, C.K. & Chen, Y. & Olson, A. & Moore, J. & Schlag, N. & Ong, A. & Ho, T., 2017. "Electricity price behavior and carbon trading: New evidence from California," Applied Energy, Elsevier, vol. 204(C), pages 531-543.
    14. Brown, David P. & Eckert, Andrew & Eckert, Heather, 2018. "Carbon pricing with an output subsidy under imperfect competition: The case of Alberta's restructured electricity market," Resource and Energy Economics, Elsevier, vol. 52(C), pages 102-123.
    15. Simshauser, Paul & Tian, Yuan & Whish-Wilson, Patrick, 2015. "Vertical integration in energy-only electricity markets," Economic Analysis and Policy, Elsevier, vol. 48(C), pages 35-56.
    16. Petr Spodniak & Mikael Collan & Mari Makkonen, 2017. "On Long-Term Transmission Rights in the Nordic Electricity Markets," Energies, MDPI, vol. 10(3), pages 1-19, March.
    17. Suarez, Carlos, 2022. "Private management and strategic bidding behavior in electricity markets: Evidence from Colombia," Energy Economics, Elsevier, vol. 111(C).
    18. Emmanuel Dechenaux & Dan Kovenock, 2007. "Tacit collusion and capacity withholding in repeated uniform price auctions," RAND Journal of Economics, RAND Corporation, vol. 38(4), pages 1044-1069, December.
    19. Ketter, W. & Collins, J. & de Weerdt, M.M., 2017. "The 2018 Power Trading Agent Competition," ERIM Report Series Research in Management ERS-2017-016-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    20. Sven-Olof Fridolfsson and Thomas P. Tangeras, 2015. "Nuclear Capacity Auctions," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3).

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:appene:v:212:y:2018:i:c:p:1360-1376. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.