103
views
0
recommends
+1 Recommend
1 collections
    0
    shares
      • Record: found
      • Abstract: found
      • Article: found
      Is Open Access

      Electricity markets regarding the operational flexibility of power plants

      Preprint

      Read this article at

      Bookmark
          There is no author summary for this article yet. Authors can add summaries to their articles on ScienceOpen to make them more accessible to a non-specialist audience.

          Abstract

          Electricity market mechanisms designed to steer sustainable generation of electricity play an important role for the energy transition intended to mitigate climate change. One of the major problems is to complement volatile renewable energy sources by operationally flexible capacity reserves. In this paper a proposal is given to determine prices on electricity markets taking into account the operational flexibility of power plants, such that the costs of long-term capacity reserves can be paid by short-term electricity spot markets. For this purpose, a measure of operational flexibility is introduced enabling to compute an inflexibility fee charging each individual power plant on a wholesale electricity spot market. The total sum of inflexibility fees accumulated on the spot markets then can be used to finance a capacity market keeping the necessary reserves to warrant grid reliability. Here each reserve power plant then gets a reliability payment depending on its operational flexibility. The proposal is applied to a small exemplary grid, illustrating its main idea and also revealing the caveat that too high fees paradoxically could create incentives to employ highly flexible power plants on the spot market rather than to run them as backup capacity.

          Related collections

          Most cited references5

          • Record: found
          • Abstract: not found
          • Article: not found

          Bilateral trade with the sealed bid k-double auction: Existence and efficiency

            Bookmark
            • Record: found
            • Abstract: not found
            • Article: not found

            Incentive Efficiency of Double Auctions

              Bookmark
              • Record: found
              • Abstract: not found
              • Article: not found

              A safe operating space for humanity

                Bookmark

                Author and article information

                Journal
                1502.00120

                Applied computer science
                Applied computer science

                Comments

                Comment on this article