Economics at your fingertips  

Coordinated optimal strategic demand reserve procurement in multi-area power systems

Egill Tómasson and Lennart Söder

Applied Energy, 2020, vol. 270, issue C, No S0306261920304967

Abstract: With renewable energy sources becoming an ever-increasing share of the generation mix of modern power systems, having the proper amount of reserve becomes of utmost importance to ensure the short-term as well as the long-term adequacy level in the system. This reserve can be in the form of generation assets or it can be provided from assets on the demand side. The contribution that these resources make to the adequacy of the system is referred to as their capacity credit. This paper derives a methodology for calculating the capacity credit of a resource in a multi-area system. Based on that, an approach is developed that quantifies how strategic demand reserve should be distributed between power system areas in a multi-area system in order to reach individual long-term reliability targets in all areas. Lastly, an algorithm is derived that optimizes the coordinated procurement of multi-area strategic demand reserve by counterbalancing the value of lost load against the costs related to maintaining generation adequacy. A combination of an iterative multi-variate gradient approach and a Monte Carlo simulation with an efficient sensitivity analysis allows this to be achieved in a computationally economical way. An illustrative example and numerical simulations of test systems using real data from the Nordic power system demonstrate the effectiveness of the proposed approach.

Keywords: LOLP; LOLE; EENS; Generation adequacy; Capacity credit; Strategic demand reserve (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from
http://www.elsevier. ... 405891/bibliographic

DOI: 10.1016/j.apenergy.2020.114984

Access Statistics for this article

Applied Energy is currently edited by J. Yan

More articles in Applied Energy from Elsevier
Bibliographic data for series maintained by Haili He ().

Page updated 2020-10-03
Handle: RePEc:eee:appene:v:270:y:2020:i:c:s0306261920304967