A Scenario-oriented Approach to Multi-period Energy-Reserve Joint Procurement and Pricing

TL;DR

This paper extends a single-period energy-reserve co-optimization model to a multi-period setting, incorporating ramping constraints and multi-period pricing, to improve market efficiency and operational effectiveness.

Contribution

It introduces a novel multi-period co-optimization model with ramping considerations and discusses its pricing and settlement mechanisms, advancing multi-period energy market modeling.

Findings

Multi-period model reduces total system costs compared to traditional models.

Incorporating ramping constraints improves operational realism.

Market properties are validated through case studies.

Abstract

In [1], a single-period co-optimization model of energy and reserve is considered to better illustrate the properties of the co-optimization model and the associated market mechanism. To make the discussion more general, in this paper, the single-period co-optimization model (II) in [1] will be extended into a one-shot multi-period co-optimization model, where the coupling of ramping and reserve in multi-period operations will be considered. Also, the multi-period pricing approach and settlement process associated with the multi-period co-optimization model will be discussed. In addition, in case study, the average system total costs of the proposed multi-period model and the multi-period traditional model are compared, and the effectiveness of some market properties in multi-period operation is tested.