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.
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Notes
We assume that the site can continue to provide generation during an interruptible load event and therefore may continue to receive revenue for this, noting that if \(C_{G} \ge \lambda \) the site should curtail generation as well, although this holds true in all periods. Some markets may also introduce a per event payment as well which we have not added into this formulation, in essence an availability payment and a dispatch payment. The site disruption cost (\(D_{R}\)) will be unique to each site and for some units may be zero, e.g. interrupting a refrigerator compression cycle for 10 min may have a negligible effect.
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Cleland, N., Zakeri, G., Pritchard, G. et al. Boomer-Consumer: a model for load consumption and reserve offers in reserve constrained electricity markets. Comput Manag Sci 12, 519–537 (2015). https://doi.org/10.1007/s10287-015-0241-2
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DOI: https://doi.org/10.1007/s10287-015-0241-2