Alterable Electricity Pricing Mechanism Considering the Deviation of Wind Power Prediction

Qinqin Cai, Yongqiang Zhu, Xiaohua Yang and Lin E
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Qinqin Cai: State Key Laboratory of Operation and Control of Renewable Energy & Storage System, China Electric Power Research Institute Co., Ltd., Beijing,100192, China
Yongqiang Zhu: State Key Laboratory of Operation and Control of Renewable Energy & Storage System, China Electric Power Research Institute Co., Ltd., Beijing,100192, China
Xiaohua Yang: State Key Laboratory of Alternate Electrical Power System with Renewable Energy Sources, North China Electric Power University, Beijing,102206, China
Lin E: State Key Laboratory of Alternate Electrical Power System with Renewable Energy Sources, North China Electric Power University, Beijing,102206, China

Sustainability, 2020, vol. 12, issue 5, 1-12

Abstract: Fluctuation and prediction errors of wind power would cause a large amount of automatic generation control (AGC) adjustment costs, which lead to the problem of power curtailment. A reasonable mechanism of grid-connection electricity price may encourage wind farms to take measures to reduce the deviation between output power and schedule power, which is helpful for source-network coordination and reducing wind power curtailment. An alterable electricity pricing mechanism considering wind power deviation rate is proposed. In each schedule cycle, electricity price is adjusted according to the deviation rate and its historical change trend. In this way, wind farms will be encouraged to configure energy storage to promote the accordance of wind output power with schedule power to the greatest extent. Given the statistical characteristic of prediction errors of wind power, this paper proposes a schedule power model, taking least squares of output power deviation as objective function, and then puts forward an engineering application method for determining schedule power. This paper analyzes the overall cost and revenue of a wind farm to configure energy storage and determine the optimal energy storage capacity with the goal of maximizing the profit of the wind farm. In the case analysis, the effect of the deviation rate and its historical change trend, the deviation rate tolerance coefficient on electricity price is analyzed. The case analysis demonstrates the effectiveness of the proposed alterable electricity pricing mechanism and shows that the mechanism is helpful at reducing wind power output deviation and wind curtailment.

Keywords: alterable electricity pricing; electricity pricing mechanism; power deviation; wind power prediction; bidding of wind power; energy storage (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
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