Facilitating appropriate compensation of electric energy and reserve through standardized contracts with swing

dc.contributor.author Ho, Deung-Yong
dc.contributor.author Tesfatsion, Leigh
dc.contributor.department Economics
dc.contributor.department Electrical and Computer Engineering
dc.contributor.department Mathematics
dc.date 2018-02-18T01:06:06.000
dc.date.accessioned 2020-06-30T02:06:20Z
dc.date.available 2020-06-30T02:06:20Z
dc.date.issued 2015-01-01
dc.description.abstract <p>Three key issues have arisen for centrally-managed wholesale electric power markets in Europe and the United States as they attempt to handle an increased penetration of variable energy resources. First, rigid definitions for energy and reserve products make it difficult to ensure appropriate compensation for important needed flexibility in start-up times, ramp-rates, power dispatch levels, and duration. Second, participation restrictions hinder the achievement of an even playing field for potential providers of flexible services. Third, reliance on out-of-market compensation for the provision of some valued services encourages strategic manipulation. This study examines the possibility of addressing these three issues through the introduction of standardized energy and reserve contracts with swing (flexibility) in their contractual terms. Concrete examples are used to demonstrate how the trading of these standardized contracts can be supported by linked forward markets in a manner that permits efficient real-time balancing of net load subject to system and reserve-requirement constraints. Comparisons with existing wholesale electric power markets are given, and key policy implications are highlighted.</p>
dc.description.comments <p>This is a working paper of an article from <em>Journal of Energy Markets</em>, Vol. 8 no. 4 (December 2015): 93-121.</p>
dc.identifier archive/lib.dr.iastate.edu/econ_las_pubs/333/
dc.identifier.articleid 1333
dc.identifier.contextkey 9370269
dc.identifier.s3bucket isulib-bepress-aws-west
dc.identifier.submissionpath econ_las_pubs/333
dc.identifier.uri https://dr.lib.iastate.edu/handle/20.500.12876/21537
dc.source.uri http://lib.dr.iastate.edu/cgi/viewcontent.cgi?article=1052&context=econ_las_workingpapers
dc.subject.disciplines Econometrics
dc.subject.disciplines Finance and Financial Management
dc.subject.disciplines Power and Energy
dc.subject.keywords Electric power markets
dc.subject.keywords variable energy resources
dc.subject.keywords standardized contracts
dc.subject.keywords swing (flexibility)
dc.subject.keywords energy and reserve co-optimization
dc.subject.keywords linked forward markets
dc.title Facilitating appropriate compensation of electric energy and reserve through standardized contracts with swing
dc.type article
dc.type.genre article
dspace.entity.type Publication
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relation.isOrgUnitOfPublication a75a044c-d11e-44cd-af4f-dab1d83339ff
relation.isOrgUnitOfPublication 82295b2b-0f85-4929-9659-075c93e82c48
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