Market-based generator cost functions for power system test cases
Post-restructuring, generators are dispatched using cleared offers in the day-ahead market in the cyber-physical power system. This study proposes a novel method to design generator cost functions to emulate existing market costs for power system test cases. Cost functions on existing test cases are...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Wiley
2018-12-01
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| Series: | IET Cyber-Physical Systems |
| Subjects: | |
| Online Access: | https://digital-library.theiet.org/content/journals/10.1049/iet-cps.2018.5046 |
| _version_ | 1818461813302362112 |
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| author | Venkat Durvasulu Timothy M. Hansen |
| author_facet | Venkat Durvasulu Timothy M. Hansen |
| author_sort | Venkat Durvasulu |
| collection | DOAJ |
| description | Post-restructuring, generators are dispatched using cleared offers in the day-ahead market in the cyber-physical power system. This study proposes a novel method to design generator cost functions to emulate existing market costs for power system test cases. Cost functions on existing test cases are based on fuel costs, which do not represent organised markets. In such markets, the marginal cost of energy is determined by generator offers, not fuel costs. In this work, the authors classify real market generator offers from an independent system operator organised electricity market into generator types. Generator offers are used to develop market-based generator cost functions for use in power system test cases to emulate electricity market behaviour. The proposed method is illustrated using PJM data on eight standard power system test cases from a six bus 240 MW generation case to 2000 buses with 95,000 MW of generation. The marginal price of the proposed market-based generator costs shows on average 280% improvement in accuracy of simulating the day-ahead PJM marginal energy price over existing fuel-cost-based test cases from 2014 to 2016. By using the new market-based generator cost functions, power system simulation studies will better represent actual economic impacts. |
| first_indexed | 2024-12-14T23:52:06Z |
| format | Article |
| id | doaj.art-ea91f6af429147feb097727ffc5baf1f |
| institution | Directory Open Access Journal |
| issn | 2398-3396 |
| language | English |
| last_indexed | 2024-12-14T23:52:06Z |
| publishDate | 2018-12-01 |
| publisher | Wiley |
| record_format | Article |
| series | IET Cyber-Physical Systems |
| spelling | doaj.art-ea91f6af429147feb097727ffc5baf1f2022-12-21T22:43:13ZengWileyIET Cyber-Physical Systems2398-33962018-12-0110.1049/iet-cps.2018.5046IET-CPS.2018.5046Market-based generator cost functions for power system test casesVenkat Durvasulu0Timothy M. Hansen1South Dakota State UniversitySouth Dakota State UniversityPost-restructuring, generators are dispatched using cleared offers in the day-ahead market in the cyber-physical power system. This study proposes a novel method to design generator cost functions to emulate existing market costs for power system test cases. Cost functions on existing test cases are based on fuel costs, which do not represent organised markets. In such markets, the marginal cost of energy is determined by generator offers, not fuel costs. In this work, the authors classify real market generator offers from an independent system operator organised electricity market into generator types. Generator offers are used to develop market-based generator cost functions for use in power system test cases to emulate electricity market behaviour. The proposed method is illustrated using PJM data on eight standard power system test cases from a six bus 240 MW generation case to 2000 buses with 95,000 MW of generation. The marginal price of the proposed market-based generator costs shows on average 280% improvement in accuracy of simulating the day-ahead PJM marginal energy price over existing fuel-cost-based test cases from 2014 to 2016. By using the new market-based generator cost functions, power system simulation studies will better represent actual economic impacts.https://digital-library.theiet.org/content/journals/10.1049/iet-cps.2018.5046pricingpower generation economicspower marketsmarket-based generator cost functionsday-ahead marketcyber-physical power systemstandard power system test casespower system simulation studiesfuel-cost-based test casesbus generation caseelectricity market generator behaviourload dispatchingday-ahead PJM marginal energy pricepower 240.0 MWpower 95000.0 MW |
| spellingShingle | Venkat Durvasulu Timothy M. Hansen Market-based generator cost functions for power system test cases IET Cyber-Physical Systems pricing power generation economics power markets market-based generator cost functions day-ahead market cyber-physical power system standard power system test cases power system simulation studies fuel-cost-based test cases bus generation case electricity market generator behaviour load dispatching day-ahead PJM marginal energy price power 240.0 MW power 95000.0 MW |
| title | Market-based generator cost functions for power system test cases |
| title_full | Market-based generator cost functions for power system test cases |
| title_fullStr | Market-based generator cost functions for power system test cases |
| title_full_unstemmed | Market-based generator cost functions for power system test cases |
| title_short | Market-based generator cost functions for power system test cases |
| title_sort | market based generator cost functions for power system test cases |
| topic | pricing power generation economics power markets market-based generator cost functions day-ahead market cyber-physical power system standard power system test cases power system simulation studies fuel-cost-based test cases bus generation case electricity market generator behaviour load dispatching day-ahead PJM marginal energy price power 240.0 MW power 95000.0 MW |
| url | https://digital-library.theiet.org/content/journals/10.1049/iet-cps.2018.5046 |
| work_keys_str_mv | AT venkatdurvasulu marketbasedgeneratorcostfunctionsforpowersystemtestcases AT timothymhansen marketbasedgeneratorcostfunctionsforpowersystemtestcases |