Dynamics of Spot Market and Real-Time Balancing Market
Dynamics of Markets
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Around the world, there are a number of policies encouraging penetration of wind generation in the electricity industry. The proposed large increase in the penetration of wind generation has raised concerns about the continued security and reliability of the operation of the network. Together with the uncertainty associated to the generation of wind energy, the demand for balancing services is increasing. Under these windy scenarios, it might be more efficient to use preventive actions in the spot market rather than doing corrective actions in the market for balancing services. This book aims ...
Around the world, there are a number of policies encouraging penetration of wind generation in the electricity industry. The proposed large increase in the penetration of wind generation has raised concerns about the continued security and reliability of the operation of the network. Together with the uncertainty associated to the generation of wind energy, the demand for balancing services is increasing. Under these windy scenarios, it might be more efficient to use preventive actions in the spot market rather than doing corrective actions in the market for balancing services. This book aims at showing the advantages of this new paradigm of the organization of the electricity market. With this purpose, an integrated model of the electricity market was built on the optimization GAMS software and run for different environments and configurations of the grid. Comparisons are made at the end of this document in order to point out the superiority of this new approach over the traditional corrective model.
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