Title :
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
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;
Conference_Titel :
Innovative Smart Grid Technologies Europe (ISGT EUROPE), 2013 4th IEEE/PES
Conference_Location :
Lyngby
DOI :
10.1109/ISGTEurope.2013.6695362
