Integrating Renewables in Electricity Markets pp 137-171 | Cite as

# Managing Uncertainty with Flexibility

## Abstract

As stochastic production units such as those based on wind or solar sources involve both high variability and high uncertainty, system flexibility is needed to accommodate such variability and uncertainty. System flexibility, which is analyzed in this chapter from the viewpoint of the Independent System Operator, involves preventive and corrective actions by conventional power plants, the demand, pumped-storage plants, as well as the availability of sufficient transmission capacity. This chapter analyzes the flexibility provided by these agents and illustrates its effects on system operations and costs through a number of examples.

## Keywords

Independent System Operator Optimal Reserve Wind Power Production Schedule Stage Reserve Cost## References

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