Optimal Variable Renewable Energy Generation Schedules Considering Market Prices and System Operational Constraints
The maximization of output from variable renewable energy (VRE) sources considering system operational constraints (SOCs) is a traditional method for maximizing VRE generators’ profits. However, in wholesale electricity markets, VRE participation tends to reduce marginal prices (MP) because of its l...
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| Format: | Article |
| Language: | English |
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MDPI AG
2021-08-01
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| Series: | Energies |
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| Online Access: | https://www.mdpi.com/1996-1073/14/17/5320 |
| _version_ | 1831516764688613376 |
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| author | Veeraya Imcharoenkul Surachai Chaitusaney |
| author_facet | Veeraya Imcharoenkul Surachai Chaitusaney |
| author_sort | Veeraya Imcharoenkul |
| collection | DOAJ |
| description | The maximization of output from variable renewable energy (VRE) sources considering system operational constraints (SOCs) is a traditional method for maximizing VRE generators’ profits. However, in wholesale electricity markets, VRE participation tends to reduce marginal prices (MP) because of its low marginal costs. This circumstance, called the “merit-order effect” (MOE), reduces the generators’ profits. Thus, the traditional method is possibly no longer the best and only method to maximize the generators’ profits. Moreover, the VRE support schemes also affect MP, making MOE more severe. VRE curtailment can relieve MOE, but VRE output must be decreased, thereby reducing the generators’ profits. This paper proposes a method to find the optimal VRE generation schedules that maximize VRE generators’ profits while considering the trade-off among the VRE output, MP, and SOCs. The method combines the merit-order model and the unit-commitment model solved by the optimization tools in MATLAB. Thailand’s electrical system was the test system. The result shows that VRE generators’ profits from the proposed method are significantly higher than from the traditional method when the system has high wind penetration, and the generators have no support scheme. Curtailing approximately 7–10% of wind output can increase the average MP by 23.6–30%. |
| first_indexed | 2024-03-10T08:12:42Z |
| format | Article |
| id | doaj.art-724156fcada341aebaaf5a10fde0d5cc |
| institution | Directory Open Access Journal |
| issn | 1996-1073 |
| language | English |
| last_indexed | 2024-03-10T08:12:42Z |
| publishDate | 2021-08-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Energies |
| spelling | doaj.art-724156fcada341aebaaf5a10fde0d5cc2023-11-22T10:32:56ZengMDPI AGEnergies1996-10732021-08-011417532010.3390/en14175320Optimal Variable Renewable Energy Generation Schedules Considering Market Prices and System Operational ConstraintsVeeraya Imcharoenkul0Surachai Chaitusaney1Department of Electrical Engineering, Faculty of Engineering, Chulalongkorn University, Bangkok 10330, ThailandDepartment of Electrical Engineering, Faculty of Engineering, Chulalongkorn University, Bangkok 10330, ThailandThe maximization of output from variable renewable energy (VRE) sources considering system operational constraints (SOCs) is a traditional method for maximizing VRE generators’ profits. However, in wholesale electricity markets, VRE participation tends to reduce marginal prices (MP) because of its low marginal costs. This circumstance, called the “merit-order effect” (MOE), reduces the generators’ profits. Thus, the traditional method is possibly no longer the best and only method to maximize the generators’ profits. Moreover, the VRE support schemes also affect MP, making MOE more severe. VRE curtailment can relieve MOE, but VRE output must be decreased, thereby reducing the generators’ profits. This paper proposes a method to find the optimal VRE generation schedules that maximize VRE generators’ profits while considering the trade-off among the VRE output, MP, and SOCs. The method combines the merit-order model and the unit-commitment model solved by the optimization tools in MATLAB. Thailand’s electrical system was the test system. The result shows that VRE generators’ profits from the proposed method are significantly higher than from the traditional method when the system has high wind penetration, and the generators have no support scheme. Curtailing approximately 7–10% of wind output can increase the average MP by 23.6–30%.https://www.mdpi.com/1996-1073/14/17/5320merit-order effectprofit maximizationsystem operational constraintsunit-commitmentvariable renewable energyrenewable energy support scheme |
| spellingShingle | Veeraya Imcharoenkul Surachai Chaitusaney Optimal Variable Renewable Energy Generation Schedules Considering Market Prices and System Operational Constraints Energies merit-order effect profit maximization system operational constraints unit-commitment variable renewable energy renewable energy support scheme |
| title | Optimal Variable Renewable Energy Generation Schedules Considering Market Prices and System Operational Constraints |
| title_full | Optimal Variable Renewable Energy Generation Schedules Considering Market Prices and System Operational Constraints |
| title_fullStr | Optimal Variable Renewable Energy Generation Schedules Considering Market Prices and System Operational Constraints |
| title_full_unstemmed | Optimal Variable Renewable Energy Generation Schedules Considering Market Prices and System Operational Constraints |
| title_short | Optimal Variable Renewable Energy Generation Schedules Considering Market Prices and System Operational Constraints |
| title_sort | optimal variable renewable energy generation schedules considering market prices and system operational constraints |
| topic | merit-order effect profit maximization system operational constraints unit-commitment variable renewable energy renewable energy support scheme |
| url | https://www.mdpi.com/1996-1073/14/17/5320 |
| work_keys_str_mv | AT veerayaimcharoenkul optimalvariablerenewableenergygenerationschedulesconsideringmarketpricesandsystemoperationalconstraints AT surachaichaitusaney optimalvariablerenewableenergygenerationschedulesconsideringmarketpricesandsystemoperationalconstraints |