Impact of renewable power penetration on power market operation

The power market provides more choices for both power suppliers and consumers. The objective of each market participant is to maximize its benefit while minimizing the cost through purchasing or selling energy. In a conventional vertically integrated system, the electricity prices are determined uniformly by the system operators. In a restructured power system, however, the electricity prices are determined by clearing the power market. The system reliability is not only related to system configurations and component outage properties, but also affected by the electricity prices. Nodal prices and nodal reliability are adopted in the power market for pricing the energy and for evaluating customers’ reliability. In deregulated power systems, the provision and pricing of ancillary services are determined in the ancillary service market. Renewable energy have being utilized widely as substitutes for fossil fuels due to their clean generation process and abundance. Penetration of renewable sources, however, introduces additional variables to the existing power system due to their intermittent nature. The variation of renewable energy and participation of renewable energy providers in power market operation will affect the nodal prices and nodal reliability. New techniques need to be developed to understand and assess the behavior of renewable energy, and to quantify their impacts on power market operation. The main aim of the research project was to investigate restructured power system operation and the impacts of the renewable energy penetration on market operations. The existing theories and methods to evaluate reliability performances and electricity prices have been studied. Renewable energy penetrations in deregulated power systems have been investigated. Since the fluctuations in unpredictable renewable power affect reserve deployment, the reserve market and deployment have also been investigated. Contingency reserve models and an energy and reserve co-optimization market clearing process have been proposed. The impacts of contingency reserves on system reliability risks have been analyzed using an analytical method. The generation and reliability models of solar generation systems in terms of photovoltaic (PV) arrays and wind generation in terms of wind turbine generators (WTG) have been developed. The variations of renewable power have been examined using the auto-regressive and moving average time series method. Considering the stochastic and chronological nature of solar power, the pseudo sequential Monte Carlo simulation method has been utilized to evaluate the impacts of PV power on system reliability performances and reserve deployments. The bidding strategies of wind power providers have been investigated based on short-term forecasts. The impacts of wind power providers’ bidding strategies on nodal price and nodal reliability have also been examined.DOCTOR OF PHILOSOPHY (EEE