Case studies and results of the E-Price approach in power systems

This paper presents the simulation results of a model for the validation of market designs and algorithms for power balancing. The simulations were performed as one of the final deliverables of the E-Price project. The market design under simulation includes the introduction of double sided markets for ancillary services for power balancing, in which balance responsible parties have the possibility to hedge their position in terms of energy balance. The model, which includes both day-ahead and real-time decisions, has been exposed to imbalances of three categories. These imbalances are power plant trips, wind power forecasting errors and wind power fluctuations. As such it is evaluated how the proposed power balancing mechanisms perform. The simulations show that the proposed double sided market for ancillary services gives proper incentives to balance responsible parties to minimize their imbalance as well as to provide available resources to the balancing systems in place.