Local energy and planned ramping product joint market based on a distributed optimization method

Abstract

High penetration of renewable energy generation (REG) in the distribution system increases both the power uncertainty at a given interval and the power variation between two intervals. Reserve markets addressing power uncertainty have been widely investigated. However, there is a lack of market mechanisms regarding the power variation of the load and REGs. This paper thus defines a planned ramping (PR) product to follow the net load variation and extends the local energy market to include the trading of PR products. Players are economically compensated for their PR products. Bidding models of dispatchable generators and flexible load aggregators in the joint market are investigated. To solve the market problem in polynomial time, a distributed market clearing method is developed based on the ADMM algorithm. The joint market is tested on a modified IEEE 33-bus system. It verifies that introducing the PR market can encourage flexible loads to provide more PR service to accommodate the net load variation. As such, the ramping cost of dispatchable generators is reduced by 29.09% in the test case. The planned energy curtailment from REG is also reduced. The computational efficiency of the proposed distributed clearing method is validated by comparing it with a centralized method.