A Single-Settlement, Energy-Only Electric Power Market for Unpredictable and Intermittent Participants

We discuss a stochastic-programming-based method for scheduling electric power generation subject to uncertainty. Such uncertainty may arise from either imperfect forecasting or moment-to-moment fluctuations, and on either the supply or the demand side. The method gives a system of locational marginal prices which reflect the uncertainty, and these may be used in a market settlement scheme in which payment is for energy only. We show that this scheme is revenue-adequate in expectation. Key words and phrases: electricity market, stochastic programming, locational pricing, wind power, regulation.

• Type: Journal
• Year: 2010
• Where: IOR
• Authors: Geoffrey Pritchard, Golbon Zakeri, Andrew B. Philpott
• Keywords: Electric Power Generation, IOR 2010, Locational Marginal Prices, Market Settlement Scheme