A Novel Market Simulation Methodology on Hydro Storage

Author

Yang Gu ; Bakke, Jordan ; Zheng Zhou ; Osborn, Dale ; Tao Guo ; Rui Bo

Author_Institution

NRG Energy, Princeton, NJ, USA

Volume

5

Issue

2

fYear

2014

fDate

Mar-14

Firstpage

1119

Lastpage

1128

Abstract

This paper presents a novel methodology to simulate the economic performance of hydro storage systems in the day-ahead (DA) and real-time (RT) markets. A detailed hydro storage system model is proposed to capture the unique characteristics of hydro storage units. A unique RT market bidding method named Tiered Bidding is proposed to represent the RT market offers of hydro storage units. In order to accurately represent the way hydro storage systems participate in the RT market, four hydro system RT bidding strategies are proposed and evaluated. The proposed methodology is applied to the Eastern Interconnection system to evaluate the economic benefits of Manitoba Hydro´s market participation in MISO´s RT energy and ancillary services market.

Keywords

energy storage; hydroelectric power stations; power markets; DA markets; Eastern Interconnection system; MISO; Manitoba Hydro; RT market bidding method; Tiered Bidding; day-ahead markets; hydro storage systems; market simulation methodology; real-time markets; Generators; Hydraulic turbines; Load modeling; Predictive models; Reservoirs; Wind forecasting; Ancillary services market; co-optimization; energy market; energy storage; hydro; wind;

fLanguage

English

Journal_Title

Smart Grid, IEEE Transactions on

Publisher

ieee

ISSN

1949-3053

Type

jour

DOI

10.1109/TSG.2013.2289915

Filename

6740884