Day-Ahead Scheduling: Reserve Determination and Valuation

Ruiwei Jiang, Antonio J. Conejo, Jianhui Wang

Research output: Chapter in Book/Report/Conference proceedingChapter

Abstract

In power system operations, reserves are traditionally used to restore the balance between power supply and demand after a power system equipment failure or emergency. Reserves are procured by the system operator as mandated by the regulator. It is important to note that reserves are normally provided by non-stochastic units that produce energy. Reserve and energy are different commodities provided by the same production facilities: the generators. This chapter provides an overview on how to optimally procure reserves using both stochastic programming and robust optimization procedures. As the stochastic production units take up a growing share in the electricity production mix, it becomes more important for the Regional Transmission Organizations (RTOs) to better model the stochasticity and accordingly procures reserves. As a result, stochastic programming and robust optimization procedures are particularly well motivated in reserve determination. The chapter analyzes the way in which reserve needs and reserve cost increase with renewable integration and renewable variability.

Original languageEnglish (US)
Title of host publicationPower Grid Operation in a Market Environment
Subtitle of host publicationEconomic Efficiency and Risk Mitigation
Publisherwiley
Pages169-194
Number of pages26
ISBN (Electronic)9781119083016
ISBN (Print)9781118984543
DOIs
Publication statusPublished - Sep 30 2016
Externally publishedYes

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Keywords

  • Day-ahead scheduling
  • Power system operations
  • Regional transmission organizations
  • Renewable variability
  • Reserve cost
  • Reserve determination
  • Robust optimization procedures
  • Stochastic programming

ASJC Scopus subject areas

  • Energy(all)
  • Engineering(all)

Cite this

Jiang, R., Conejo, A. J., & Wang, J. (2016). Day-Ahead Scheduling: Reserve Determination and Valuation. In Power Grid Operation in a Market Environment: Economic Efficiency and Risk Mitigation (pp. 169-194). wiley. https://doi.org/10.1002/9781119083016.ch6