Redefining the merit order of stochastic generation in forward markets
Research output: Contribution to journal › Journal article › Research › peer-review
This letter proposes a new merit order for the dispatch of stochastic production in forward markets (e.g., day-ahead markets). The proposed merit order considers not only the marginal cost of the stochastic generating unit, which is often very low or zero, but also the projected cost of balancing its energy deviations during the real-time operation of the power system. We show, through an illustrative example, that the proposed merit order leads to increased market efficiency as the penetration of stochastic generation in the electricity market grows.
Original language | English |
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Article number | 6656976 |
Journal | IEEE Transactions on Power Systems |
Volume | 29 |
Issue number | 2 |
Pages (from-to) | 992-993 |
Number of pages | 2 |
ISSN | 0885-8950 |
DOIs | |
Publication status | Published - 1 Mar 2014 |
- Bilevel programming, merit order, renewable energy, stochastic generation, stochastic programming
Research areas
ID: 130020937