Internalization of reliability unit commitment in day-ahead market: Analysis and interpretation

Menghan Zhang, Zhifang Yang, Wei Lin, Juan Yu and Wenyuan Li

Applied Energy, 2022, vol. 326, issue C, No S0306261922011837

Abstract: To ensure enough generation capacities for real-time operation, reliability unit commitment (RUC) is implemented beyond the day-ahead market (DAM) of power industries. The additional commitments and decisions, which arrange more online generation capacities, ensure the reliability of the power supply. However, the out-of-market RUC leads to incentive issues for reliability units (RUs) and ultimately increases the out-of-market payments. To solve these problems, the compensation for RUs, including their production costs and lost opportunity costs associated with RUC, is thoroughly analyzed. Then, an internalizing framework is presented to integrate the RUC into the DAM. The market-oriented method can determine the RUs in DAM and reduces out-of-market payments. Note that the internalization involves additional resources and influences the compensations for entities’ services. In this paper, the related payments for all resources are reasonably implemented and the components of the resulted market-settlement surplus are decomposed. Case studies on the IEEE 30-bus and Polish systems demonstrate that the proposed method can reduce the out-of-market payments brought by RUC and improve economic efficiencies.

Keywords: Day-ahead market (DAM); Electricity market; Market clearing price; Reliability unit commitment (RUC) (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0306261922011837
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: https://EconPapers.repec.org/RePEc:eee:appene:v:326:y:2022:i:c:s0306261922011837

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/bibliographic
http://www.elsevier. ... 405891/bibliographic

DOI: 10.1016/j.apenergy.2022.119926

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 Catherine Liu ().