Optimization of time-based rates in forward energy markets
Author(s)Wang, J.; Kennedy, Scott; Kirtley, James L., Jr.
MetadataShow full item record
This paper presents a new two-step design approach of Time-Based Rate (TBR) programs for markets with a high penetration of variable energy sources such as wind power. First, an optimal market time horizon must be determined that balances between production generation forecast accuracy and customers' scheduling flexibility, in order to achieve a minimum system cost in forward and real-time reserve energy markets. The time horizon obtained is used as a known parameter in the subsequent design of TBR's pricing values. Customers' scheduling strategies modeled by price elasticity matrices along with current system conditions are considered in the price calculation process, during which system cost of the forward energy market is minimized.
DepartmentMassachusetts Institute of Technology. Department of Electrical Engineering and Computer Science
7th International Conference on the European Energy Market 2010 (EEM)
Institute of Electrical and Electronics Engineers (IEEE)
Wang, J., S. Kennedy, and J. Kirtley. “Optimization of Time-Based Rates in Forward Energy Markets.” 7th International Conference on the European Energy Market 2010 (EEM). 1–7. © Copyright 2010 IEEE
Final published version