Computational Management Science

, Volume 12, Issue 4, pp 519–537 | Cite as

Boomer-Consumer: a model for load consumption and reserve offers in reserve constrained electricity markets

  • Nigel Cleland
  • Golbon Zakeri
  • Geoff Pritchard
  • Brent Young
Original Paper
  • 146 Downloads

Abstract

A model to determine the optimal consumption level and associated reserve offer for a large consumer in a co-optimised electricity market is presented. The method uses numerical simulation along with a full representation of the New Zealand electricity market dispatch model. Uncertainty is introduced through the use of stochastic demand sampling. We approach this process in three phases: phase one contains simulations to determine potential energy and reserve prices under uncertainty. Phase two uses a dynamic programming method, adapted from a generator model, to determine the optimal reserve offer. Phase three is the repetition of phase one with the optimal reserve offer intact. The model has been applied to a user in New Zealand and initial results have been presented. The model approached a theoretical maximum profitability when used as an input to a site curtailment response strategy.

Keywords

Stochastic optimisation Demand response Co-optimised electricity markets Ancillary services N-1 reserve 

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Copyright information

© Springer-Verlag Berlin Heidelberg 2015

Authors and Affiliations

  • Nigel Cleland
    • 1
  • Golbon Zakeri
    • 2
  • Geoff Pritchard
    • 3
  • Brent Young
    • 1
  1. 1.Department of Chemical EngineeringUniversity of AucklandAucklandNew Zealand
  2. 2.Department of Engineering ScienceUniversity of AucklandAucklandNew Zealand
  3. 3.Department of Mathematics and StatisticsUniversity of AucklandAucklandNew Zealand

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