Analyzing the Impacts of Increased Wind Power on Generation Revenue Sufficiency

Qin Wang; Jin Tan; Brian Hodge; Wanning Li; Cheng Luo; Hongyu Wu

doi:10.1109/PESGM.2016.7741858

Analyzing the Impacts of Increased Wind Power on Generation Revenue Sufficiency

Qin Wang, Jin Tan, Brian Hodge, Wanning Li, Cheng Luo, Hongyu Wu

Power Systems Engineering

Research output: Contribution to conference › Paper › peer-review

11 Scopus Citations

Abstract

The Revenue Sufficiency Guarantee (RSG), as part of make-whole (or uplift) payments in electricity markets, is designed to recover the generation resources' offer-based production costs that are not otherwise covered by their market revenues. Increased penetrations of wind power will bring significant impacts to the RSG payments in the markets. However, literature related to this topic is sparse. This paper first reviews the industrial practices of implementing RSG in major US independent system operators (ISOs) and regional transmission operators (RTOs), and then develops a general RSG calculation method. Finally, an 18-bus test system is adopted to demonstrate the impacts of increased wind power on RSG payments.

Original language	American English
Number of pages	5
DOIs	https://doi.org/10.1109/PESGM.2016.7741858 https://doi.org/10.1109/PESGM.2016.7741858
State	Published - 2016
Event	2016 IEEE Power and Energy Society General Meeting, PESGM 2016 - Boston, United States Duration: 17 Jul 2016 → 21 Jul 2016

Conference

Conference	2016 IEEE Power and Energy Society General Meeting, PESGM 2016
Country/Territory	United States
City	Boston
Period	17/07/16 → 21/07/16

Bibliographical note

See NREL/CP-5D00-65387 for preprint

NREL Publication Number

NREL/CP-5D00-67707

Keywords

Electricity markets
Impact
Make-whole payment
Revenue sufficiency guarantee (RSG)
Uplifts
Wind

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Cite this

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title = "Analyzing the Impacts of Increased Wind Power on Generation Revenue Sufficiency",

abstract = "The Revenue Sufficiency Guarantee (RSG), as part of make-whole (or uplift) payments in electricity markets, is designed to recover the generation resources' offer-based production costs that are not otherwise covered by their market revenues. Increased penetrations of wind power will bring significant impacts to the RSG payments in the markets. However, literature related to this topic is sparse. This paper first reviews the industrial practices of implementing RSG in major US independent system operators (ISOs) and regional transmission operators (RTOs), and then develops a general RSG calculation method. Finally, an 18-bus test system is adopted to demonstrate the impacts of increased wind power on RSG payments.",

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author = "Qin Wang and Jin Tan and Brian Hodge and Wanning Li and Cheng Luo and Hongyu Wu",

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doi = "10.1109/PESGM.2016.7741858",

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AU - Tan, Jin

AU - Hodge, Brian

AU - Li, Wanning

AU - Luo, Cheng

AU - Wu, Hongyu

N1 - See NREL/CP-5D00-65387 for preprint

PY - 2016

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N2 - The Revenue Sufficiency Guarantee (RSG), as part of make-whole (or uplift) payments in electricity markets, is designed to recover the generation resources' offer-based production costs that are not otherwise covered by their market revenues. Increased penetrations of wind power will bring significant impacts to the RSG payments in the markets. However, literature related to this topic is sparse. This paper first reviews the industrial practices of implementing RSG in major US independent system operators (ISOs) and regional transmission operators (RTOs), and then develops a general RSG calculation method. Finally, an 18-bus test system is adopted to demonstrate the impacts of increased wind power on RSG payments.

AB - The Revenue Sufficiency Guarantee (RSG), as part of make-whole (or uplift) payments in electricity markets, is designed to recover the generation resources' offer-based production costs that are not otherwise covered by their market revenues. Increased penetrations of wind power will bring significant impacts to the RSG payments in the markets. However, literature related to this topic is sparse. This paper first reviews the industrial practices of implementing RSG in major US independent system operators (ISOs) and regional transmission operators (RTOs), and then develops a general RSG calculation method. Finally, an 18-bus test system is adopted to demonstrate the impacts of increased wind power on RSG payments.

KW - Electricity markets

KW - Impact

KW - Make-whole payment

KW - Revenue sufficiency guarantee (RSG)

KW - Uplifts

KW - Wind

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DO - 10.1109/PESGM.2016.7741858

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T2 - 2016 IEEE Power and Energy Society General Meeting, PESGM 2016

Y2 - 17 July 2016 through 21 July 2016

ER -

Analyzing the Impacts of Increased Wind Power on Generation Revenue Sufficiency

Abstract

Conference

Bibliographical note

NREL Publication Number

Keywords

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