The impact of trading wind power in both energy and regulation reserve market on system operation

With the significant growth of the installed capacity of wind power, the variability of wind energy production puts greater stress on the power system operation. In this situation, more rapid regulation reserve is required, which escalates the scarcity of balancing service. A combined energy and regulation reserve market model is proposed in previous work by introducing wind energy into reserve market, but the previous work mainly concentrates on the bidding strategy and its relative revenue on the side on wind producer. This paper focuses on evaluating the new bidding strategy on the side of system operation by simulating a day-ahead unit commitment problem, and it is derived that in this new market mechanism, more secure system operation can be achieved with lower dispatch cost, through comparing the scheduling results under different bidding strategies.