An Integrated Framework for Effective Management of Delivery Risk in Electricity Markets: From Batteries to Insurance and Beyond

Research output: NRELPoster

Abstract

Net load imbalances due to imperfect day-ahead forecasts can cause variability in real-time electricity prices and higher system operations costs. We propose a novel market product called Flexibility Options that allow participants to hedge uncertainty by buying flexibility from flexible resources. Simulations show that flexibility options can reduce total system operating costs by up to 15% and can reduce variability in market participant revenues. To better quantify the flexibility that DER aggregators can provide, we develop DER flexibility scores that account for asset flexibility and uncertainty from occupant behavior and weather. Preliminary results show that realistic sets of DERs have significant variability in flexibility and uncertainty metrics.
Original languageAmerican English
StatePublished - 2023

Publication series

NamePresented at the ARPA-E Energy Innovation Summit, 22-24 March 2023, National Harbor, Maryland

NREL Publication Number

  • NREL/PO-6A40-85555

Keywords

  • delivery risk
  • distributed energy resources
  • flexibility options
  • net load imbalance
  • wholesale electricity markets

Fingerprint

Dive into the research topics of 'An Integrated Framework for Effective Management of Delivery Risk in Electricity Markets: From Batteries to Insurance and Beyond'. Together they form a unique fingerprint.

Cite this