Remunerating space–time, load-shifting flexibility from data centers in electricity markets

Weiqi Zhang and Victor M. Zavala

Applied Energy, 2022, vol. 326, issue C, No S0306261922011874

Abstract: We establish economic properties for an electricity market clearing formulation that seeks to remunerate spatio-temporal, load-shifting flexibility provided by data centers (DaCes). Load-shifting flexibility is a key asset for power grid operators as they aim to integrate larger amounts of intermittent renewable power and to decarbonize the grid. Central to our study is the concept of virtual links, which provide non-physical pathways that can be used by DaCes to shift power loads (by shifting computing loads) across space and time. We use virtual links to show that the clearing formulation treats DaCes as prosumers that simultaneously request load and provide a load-shifting flexibility service. Our analysis also reveals that DaCes are remunerated for the provision of load-shifting flexibility based on nodal price differences (across space and time). We also show that DaCe flexibility helps relieve space–time price volatility and show that the clearing formulation satisfies fundamental properties that are expected from coordinated markets (e.g., provides a competitive equilibrium and achieves revenue adequacy and cost recovery). The concepts presented are applicable to other key market players that can offer space–time shifting flexibility such as distributed manufacturing facilities and storage systems. Case studies are presented to demonstrate these properties.

Keywords: Market clearing; Virtual links; Electricity; Pricing; Flexibility; Space–time (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0306261922011874
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:s0306261922011874

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.2022.119930

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 ().