A Penalty Scheme for Mitigating Uninstructed Deviation of Generation Outputs From Variable Renewables in a Distribution Market

Jiajia Yang, Zhao Yang Dong, Fushuan Wen, Qixin Chen, Fengji Luo, Weijia Liu, Junpeng Zhan

Research output: Contribution to journalArticlepeer-review

24 Scopus Citations

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 languageAmerican English
Article number9089298
Pages (from-to)4056-4069
Number of pages14
JournalIEEE Transactions on Smart Grid
Volume11
Issue number5
DOIs
StatePublished - 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

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