The impact of trading wind power in energy-and-reserve market on power system dynamic control

In this paper, the combined energy-and-reserve wind market scheme proposed in previous work is further evaluated in a single-bus power system with control interactions. A simplified system dynamic model with closed-loop frequency control is developed to study the system dynamic responses. The proposed combined market scheme is compared with two existing wind market schemes, using conservative and optimal wind forecasts in only the energy market. Percentage wind energy generated, percentage load served, energy and reserve prices, and system frequency deviations under different wind market schemes are evaluated. The benefit of having fast reserve from wind is shown in a contingency study with loss of generation. The simulation of the proposed combined energy-and-reserve wind market scheme results in enhanced grid security and a mechanism to adjust the impacts from wind plants on grid operation by changing the deviation prices.