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Ancillary services in systems with high penetrations of renewable energy sources, the case of ramping

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  • Lamadrid, Alberto J.
  • Mount, Tim

Abstract

Renewable Energy Sources (RES) are likely to continue the upward trend observed in the past decade. The change from dispatchable generation to an environment in which Independent System Operators (ISOs), Regional Transmission Operators (RTOs), Load Serving Entities (LSEs) and consumers dynamically respond to the conditions in the system and help to alleviate the uncertainty linked to RES requires appropriate tools to evaluate the social benefits and costs of different policies implemented. This paper presents a framework for evaluating the aforementioned effects using an engineering and economic optimization model. The proposed framework is applied to a stylized case study with operations on a test network that simulates a typical day. The objective of the case study is to compare the effects of (1) controllable demand, (2) on-site storage, and (3) upgrading transmission capacity. The different scenarios are evaluated in terms of (1) the percentage of potential wind generation spilled, (2) the total operating cost of production, and (3) the amount of installed capacity needed to maintain operating reliability. The results show that controllable demand improves (reduces) all of the three criteria by alleviating congestion and mitigating wind variability. In contrast, the beneficial effects are smaller for RES's on-site storage, because it does not shift load to off-peak periods or reduce congestion, and for upgrading transmission, because it does not shift load to off-peak periods or mitigate wind variability.

Suggested Citation

  • Lamadrid, Alberto J. & Mount, Tim, 2012. "Ancillary services in systems with high penetrations of renewable energy sources, the case of ramping," Energy Economics, Elsevier, vol. 34(6), pages 1959-1971.
    • Handle: RePEc:eee:eneeco:v:34:y:2012:i:6:p:1959-1971
    DOI: 10.1016/j.eneco.2012.08.011
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    References listed on IDEAS

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    Cited by:

    1. Dhruv Suri & Jacques de Chalendar & Ines Azevedo, 2024. "What are the real implications for $CO_2$ as generation from renewables increases?," Papers 2408.05209, arXiv.org.
    2. Fianu, Emmanuel Senyo & Ahelegbey, Daniel Felix & Grossi, Luigi, 2022. "Modeling risk contagion in the Italian zonal electricity market," European Journal of Operational Research, Elsevier, vol. 298(2), pages 656-679.
    3. Lamadrid, Alberto J. & Maneevitjit, Surin & Mount, Timothy D., 2016. "The economic value of transmission lines and the implications for planning models," Energy Economics, Elsevier, vol. 57(C), pages 1-15.
    4. Kumar, Abhishek & Meena, Nand K. & Singh, Arvind R. & Deng, Yan & He, Xiangning & Bansal, R.C. & Kumar, Praveen, 2019. "Strategic integration of battery energy storage systems with the provision of distributed ancillary services in active distribution systems," Applied Energy, Elsevier, vol. 253(C), pages 1-1.
    5. Chattopadhyay, Deb, 2014. "Modelling renewable energy impact on the electricity market in India," Renewable and Sustainable Energy Reviews, Elsevier, vol. 31(C), pages 9-22.
    6. Nikolakakis, Thomas & Chattopadhyay, Deb & Bazilian, Morgan, 2017. "A review of renewable investment and power system operational issues in Bangladesh," Renewable and Sustainable Energy Reviews, Elsevier, vol. 68(P1), pages 650-658.
    7. Lisi, Francesco & Grossi, Luigi & Quaglia, Federico, 2023. "Evaluation of Cost-at-Risk related to the procurement of resources in the ancillary services market. The case of the Italian electricity market," Energy Economics, Elsevier, vol. 121(C).
    8. Godoy-González, Diego & Gil, Esteban & Gutiérrez-Alcaraz, Guillermo, 2020. "Ramping ancillary service for cost-based electricity markets with high penetration of variable renewable energy," Energy Economics, Elsevier, vol. 85(C).
    9. Moarefdoost, M. Mohsen & Lamadrid, Alberto J. & Zuluaga, Luis F., 2016. "A robust model for the ramp-constrained economic dispatch problem with uncertain renewable energy," Energy Economics, Elsevier, vol. 56(C), pages 310-325.
    10. Majzoobi, Alireza & Khodaei, Amin, 2017. "Application of microgrids in providing ancillary services to the utility grid," Energy, Elsevier, vol. 123(C), pages 555-563.
    11. Andrychowicz, Mateusz & Olek, Blazej & Przybylski, Jakub, 2017. "Review of the methods for evaluation of renewable energy sources penetration and ramping used in the Scenario Outlook and Adequacy Forecast 2015. Case study for Poland," Renewable and Sustainable Energy Reviews, Elsevier, vol. 74(C), pages 703-714.
    12. Alberto J. Lamadrid & Hao Lu & Timothy D. Mount, 2024. "A simple way to integrate distributed storage into a wholesale electricity market," Journal of Regulatory Economics, Springer, vol. 65(1), pages 27-63, June.

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    More about this item

    Keywords

    Electricity markets; Ancillary services; Ramping costs; Co-optimization;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General

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