On the Integration of Power and Reserve Trade in Electricity Networks
Speaker
Abstract
| Demand and (with the advent of renewable energy) supply in electricity networks are not perfectly predictable, but still need to match exactly. Many modern power markets trade reserve capacity a day ahead, next to a traditional power exchange market, with the goal to lower the price volatility caused by this uncertainty. Several technical solutions which can tackle uncertainty in the electricity markets, like Demand Response or storage systems, are expected to increase the trade volume of reserve power significantly. We argue that this prospect increases the need for a tight integration of power and reserve markets. This integration poses an important design challenge in the field of multi-unit auctions. We propose a novel bidding format to achieve this integration, in order to allow for bids that make planning easier and allow for more precise pricing. We provide a clearing mechanism within the AMES power market framework, which can ensure the most efficient power generation and transmission. |
| Contact information: |
| Dr. Wolf Ketter |
