Financial opportunities for LSE under scarcity price environment

Author

Zhaohao Ding ; Sarikprueck, Piampoom ; Lee, Lun-Hui ; Wei-Jen Lee ; Jie Shi ; Heng Lu

Author_Institution

Energy Syst. Res. Center, Univ. of Texas at Arlington, Arlington, TX, USA

fYear

2014

fDate

7-9 Sept. 2014

Firstpage

1

Lastpage

6

Abstract

To compensate for “missing money”, the Electric Reliability Council of Texas (ERCOT) has continued to increase the offer price cap since the nodal market opened in 2010. This provides financial opportunities for Load Serving Entities (LSE) to deploy demand response. This paper proposes a quasi-real time incentive based demand response (IBDR) scheme for LSE to take advantage of scarcity prices. Combined with the scheme is a hybrid spike price forecasting model also presented by this paper. Numerical case studies are conducted based on the realistic ERCOT load zone price data. The results illustrate the financial benefits achieved by this proposed IBDR scheme.

Keywords

financial management; incentive schemes; load forecasting; pricing; ERCOT load zone price data; Electric Reliability Council of Texas; IBDR scheme; LSE; financial benefits; financial opportunities; hybrid spike price forecasting model; load serving entities; missing money; nodal market; quasi-real time incentive based demand response; scarcity price environment; Educational institutions; Electricity; Forecasting; Load management; Load modeling; Power systems; Predictive models; demand response; load serving entity; mixed integer quadratic programming; price forecasting; scarcity price;

fLanguage

English

Publisher

ieee

Conference_Titel

North American Power Symposium (NAPS), 2014

Conference_Location

Pullman, WA

Type

conf

DOI

10.1109/NAPS.2014.6965408

Filename

6965408