Bidding in the Frequency Restoration Reserves (FRR) market for a Hydropower Unit

Author

Gebrekiros, Yonas ; Doorman, Gerard ; Jaehnert, Stefan ; Farahmand, Hossein

Author_Institution

Dept. of Electr. Power Eng., Norwegian Univ. of Sci. & Technol. (NTNU), Trondheim, Norway

fYear

2013

fDate

6-9 Oct. 2013

Firstpage

1

Lastpage

5

Abstract

In this work we present an approach to determine the Frequency Restoration Reserves (FRR) bidding price for hydropower units. The piecewise linear approximation of discharge to power output relationship of a hydropower unit is used for the price estimation. The bidding prices for reserve capacity of generation units are determined on the basis of their estimated opportunity costs in the day-ahead market for the period reserves are procured. The approach is illustrated with a numerical example. The bidding prices for both upward and downward FRR from a hydro unit are related to the difference between the daily average spot price forecasts and the water value at the given day.

Keywords

economic forecasting; hydroelectric power stations; numerical analysis; power generation economics; power markets; pricing; FRR bidding price; daily average spot price forecasts; day-ahead market; frequency restoration reserves market; generation units; hydropower units; numerical example; opportunity costs; period reserves; piecewise linear approximation; water value; Discharges (electric); Electricity supply industry; Europe; Hydroelectric power generation; Planning; Reservoirs; Downward FRR; FRR bidding price; Hydropower; Reserve Procurement; Upward FRR;

fLanguage

English

Publisher

ieee

Conference_Titel

Innovative Smart Grid Technologies Europe (ISGT EUROPE), 2013 4th IEEE/PES

Conference_Location

Lyngby

Type

conf

DOI

10.1109/ISGTEurope.2013.6695362

Filename

6695362