Optimal bidding strategy for microgrids in joint energy and ancillary service markets considering flexible ramping products

Jianxiao Wang, Haiwang Zhong, Wenyuan Tang, Ram Rajagopal, Qing Xia, Chongqing Kang and Yi Wang

Applied Energy, 2017, vol. 205, issue C, 294-303

Abstract: Due to the volatile nature of wind and photovoltaic power, wind farms and solar stations are generally thought of as the consumers of ramping services. However, a microgrid (MG) is able to strategically integrate various distributed energy resources (DERs) to provide both energy and ancillary services (ASs) for the bulk power system. To evaluate the ramping capabilities of an MG in the joint energy and AS markets, an optimal bidding strategy is developed in this paper considering flexible ramping products (FRPs). By aggregating and coordinating various DERs, including wind turbines (WTs), photovoltaic systems (PVs), micro-turbines (MTs) and energy storage systems (ESSs), the MG is able to optimally allocate the capacities for energy, spinning reserve and ramping. Taking advantage of the synergy among DERs, the MG can maximize its revenues from different markets. Moreover, the flexibility of the MG for the bulk power system can be fully explored. To address the uncertainties introduced by renewable generation and market prices, a hybrid stochastic/robust optimization (RO) approach is adopted. Case studies based on a real-world MG with various DERs demonstrate the market behavior of the MG using the proposed bidding model.

Keywords: Ancillary service; Flexible ramping product; Microgrid; Optimal bidding strategy; Robust optimization (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (53)

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DOI: 10.1016/j.apenergy.2017.07.047

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