Abstract
With rapid growth of distributed renewable generation, the establishment of electricity distribution markets has attracted widespread concerns. Different from existing transmission grid-scale electricity markets, an electricity distribution market is featured by numerous small-scale prosumers, and zero marginal cost and intermittency of renewable generation units. Against this background, this paper first extends an average pricing market (APM) mechanism for pricing renewable generation outputs with zero marginal cost in the distribution network concerned. Then, to mitigate the uninstructed volatility of renewable generation outputs and power demand, a penalty scheme is proposed for deviations between the real-time demand/output and market cleared bid/offer, with frequency regulation service (FRS) from energy storage systems (ESSs) considered. It is proved that the market volatility can be well controlled within an expected limit through properly setting the penalty prices for load demand and generation output fluctuations. Also, with this mechanism a non-negative market surplus could always be attained. Case studies are carried out to demonstrate the feasibility and efficiency of the proposed distribution market mechanism and penalty scheme.
Original language | American English |
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Article number | 9089298 |
Pages (from-to) | 4056-4069 |
Number of pages | 14 |
Journal | IEEE Transactions on Smart Grid |
Volume | 11 |
Issue number | 5 |
DOIs | |
State | Published - Sep 2020 |
Bibliographical note
Publisher Copyright:© 2010-2012 IEEE.
NREL Publication Number
- NREL/JA-5D00-77931
Keywords
- Electricity distribution market
- energy storage system (ESS)
- frequency regulation service~(FRS)
- penalty scheme
- renewable generation
- zero marginal cost