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TILEC Work In Progress: Dongchen He

Date: Time: 10:45 Location: hybrid meeting: Room K1206 and Zoom

Co-optimization of Energy and Reserves: Flexibility and Uncertainty in Electricity Markets

This paper studies power planning, taking into account two important characteristics in electricity markets: inflexibility and uncertainty. Demand and supply are both uncertain. Part of consumers are on the conventional meter and cannot react to real-time price. Production is not fully flexible so adjusting quantity upwards or downwards is costly. Especially, to increase production is not possible without standby. The main results show that if expected demand (supply availability) is low (high), reserves by flexible technologies are more cost-effective. Demand-side elasticity reduces the value of standby if rationing can be done efficiently. Supply availability and prediction accuracy mitigate the problem from production inflexibility. Finally, this paper proposes a new measure of levelized cost of energy, in which inflexibility and correlation between uncertainty and real-time price are incorporated.

Speaker: Dongchen He

Time: 10:45-11:45 hrs

Host:   Florian Schütt 

Moderator: Konrad Borowicz    

* For more information regarding this event please contact M. van Genk ,  24 hours before the event at latest.

** attendance in the room is possible but spaces are limited, please inform M. van Genk ,  24 hours before the event at latest,  should you wish to participate  in the room