Supervisors: Athanasios Papakonstantinou, Pierre Pinson, Tiago Soares
in Energy Analytics & Markets group, Centre for Electric Power and Energy, Department of Electrical Engineering
Energy and reserves are two common products traded and cleared in the traditional electricity markets. The clearing of both products in the market can be done in two distinct ways, sequentially or simultaneously. Both ways of clearing are used in the electricity markets. However, the simultaneous clearing of energy and reserve was adopted in many electricity markets (for instance in the US), since it can be economically more efficient than the sequential approach, especially in power systems close to its own limits/capacity.
With the current proliferation of wind power in electricity markets, traditional methods for clearing the market products should be improved, since intermittent power production can decrease the system reliability and thereby, increasing the levels of reserve needs. Furthermore, wind turbine technology and wind farm control has been evolving in such way that they now allow wind power plants to provide additional products besides energy only. Thus, wind power producers are now willing to participate in the provision of reserve products in electricity markets. These changes in the electric power systems should be considered, for instance, by developing new methodologies for co-clearing the energy and reserve market and able to deal with uncertain energy production
and provision of reserves in the system.
In this scope, the main goal of this M.Sc. project is to develop a new model for co-clearing energy and reserve markets, accounting for the participation of wind power in both market floors.
For modeling the proposed problem, optimization techniques can be used. Usually, the common problem of co-clearing the energy and reserve is modeled based on a deterministic approach. However, the inclusion of intermittent production requires the need of stochastic approaches to deal with the uncertainty in the system. This problem can most likely be modeled as a two-stage stochastic problem, where the first-stage is the co-clearing of the energy and reserve in the day-ahead market, while accounting for the realization of the uncertainty in the second stage. The model should be formulated in such way that allows the wind power producer to participate in both energy and reserve markets. The optimization models may be implemented in GAMS, Python or Matlab depending on the background of the successful candidate.
The expected outcome of this project includes a literature review on the problem of co-clearing of energy and reserve market with wind power participation, as well as, the formulation of the optimization problem and its implementation. The resulting model can be compared to a benchmark consisting of a traditional market model for energy and reserves.
Power systems operations, energy systems modelling, energy markets, basics of optimization and statistics