Overlaying a parallel market to increase renewable penetration

This paper presents two alternative electric market structures that increase market efficiency and reduce the cost of implementing RPS mandates. A review of existing market operation and the structure of RPS mandates provides necessary context. One alternative market structure combines a parallel market for stochastic renewable energy with incremental power flow control based on emerging power electronic solutions. This alternative market maintains the existing market and may be politically preferential to the second alternative, which requires emissions limits and a change in consumer behavior. System operation is simulated using historical load and wind resource data to demonstrate the impact of the parallel market.