A lost opportunity cost model for energy and reserve co-optimization

Author

Gan, Deqiang ; Litvinov, Eugene

Author_Institution

ISO New England, Inc., Holyoke, MA, USA

Volume

3

fYear

2002

fDate

25-25 July 2002

Firstpage

1559

Abstract

The primary goal of this work is to investigate the basic energy and reserve dispatch optimization (co-optimization) in the setting of a pool-based market. Of particular interest is the modeling of lost opportunity cost introduced by reserve allocation. We derive the marginal costs of energy and reserves under a variety of market designs. We also analyze existence, algorithm, and multiplicity of optimal solutions. The results of this study are utilized to support the reserve market design and implementation in ISO New England control area.

Keywords

costing; load dispatching; power markets; power system economics; ISO New England control area; electricity market; energy co-optimization; energy dispatch optimization; lost opportunity cost model; marginal energy costs; marginal pricing; pool-based market; reserve allocation; reserve co-optimization; reserve dispatch optimization; spinning reserve; Algorithm design and analysis; Control systems; Cost function; Design optimization; Electricity supply industry; Gallium nitride; ISO; Power generation; Pricing; Spinning;

fLanguage

English

Publisher

ieee

Conference_Titel

Power Engineering Society Summer Meeting, 2002 IEEE

Conference_Location

Chicago, IL, USA

Print_ISBN

0-7803-7518-1

Type

conf

DOI

10.1109/PESS.2002.1043652

Filename

1043652