Development of energy and reserve pre-dispatch and re-dispatch models for real-time price risk and reliability assessment

In the future, energy framework of European Union and other countries, renewable energy plays an important role tackling the problems of the climate change and security of energy supply. The high penetration of renewable energy sources will increase the burden of system operator for maintaining system reliabilities. However, the current strategy of reliability management developed for conventional power systems and existing electricity market design may not cope with the future challenges the power system faces. The development of smart grid will enable power system scheduling and the electricity market to operate in a shorter time horizon for better integrating renewable energy sources into power systems. This study presents an electricity market scheme including a multi-period energy and reserve pre-dispatch model and an energy re-dispatch model for real time operation, respectively. The multi-period energy and reserve pre-dispatch model is formulated using the multi-period optimal power flow technique. During the real time operation, the energy re-dispatch model is used for contingency management and providing balancing services. The proposed market scheme coupled with a contingency analysis methodology has been used to evaluate both real-time electricity price risk and short term reliabilities during the operational hour in the new environment.