Electricity Market Simulator to Assess High Shares of Variable Renewable Energy

Quiroz W.; Koc J. · 2022 IEEE PES Generation, Transmission and Distribution Conference and Exposition - Latin America, IEEE PES GTD Latin America 2022 (2022) · DOI: 10.1109/ieeepesgtdlatinameri53482.2022.10038304

Resumen

The high shares of renewable energy create challenges in the operation of electrical systems and in market designs, in this sense, the objective of this work is to develop a model that can simulate an electricity market based on bids, which has generation thermal, hydraulic, variable renewables and battery energy storage systems (BESS) where energy and reserves requirements are co-optimized. It is assumed that the firms compete until reaching the Cournot-Nash Equilibrium in pure strategies, which is obtained through the maximization of the Nikaido-Isoda function and a relaxation algorithm for its solution. In this way, with the results of generation, allocation of reserves and prices, it will be possible to evaluate the market power in systems that already have price offers established, as well as the markets based on costs that wish to migrate to one of offers. Potential mitigation of market power through the establishment of bilateral contracts will also be evaluated. The market simulator will be applied to a modification of the IEEE 24-bus reliability test system and the results obtained will be analyzed.

Instituciones: Universidad Nacional de Ingeniería