Impacts of solar power penetration on nodal prices and nodal reliability

The introduction of deregulation in power systems has changed the conventional electricity price determination scheme. The prices are determined by the market participants under certain market operation rules. Increasing fuel cost of traditional generation units and the concern of environment pollution have led to the development of renewable energy generation. The intermittence and time restrict characteristic of renewable sources will affect the price and reliability determination of power market. This paper has investigated the potential impacts of implementing solar energy into demand side on power system operation. As in areas with high solar irradiation like Singapore, utilization of solar energy on building surface and roof is an easy application form. In this case, the solar energy is included in demand side which will result in the change in demand curve. The calculation of nodal price is based on a daily basis. Two different types of daily solar energy profiles obtained have been used to analyze the impacts of variation of solar energy. The results show that there are significant impacts on the outcome of market of implementation of solar energy.