Power Systems Engineering Research Center

Project Summaries

Power Markets

Markets for Ancillary Services in the Presence of Stochastic Resources (M-31)

Summary With the integration of non-dispatchable resources, such as wind and solar, managing system operations while maintaining reliability is a critical challenge. Existing approaches to respond to these challenges involve stochastic programming, robust programming, and dynamic reserve policies. As market structures change to improve the management of stochastic resources, advances in the design and pricing aspects of energy and ancillary services markets are needed. This project focuses on designing new tools for ancillary services markets as well as new dynamic reserve policies and reliability criteria that are designed to take into consideration the impacts of stochastic resources. This work will also propose new pricing mechanisms that correspond to these market structure changes. Finally, the proposed changes are anticipated to result in improved pricing mechanisms that reward stakeholders when they are able to provide a higher quality of ancillary services, which is made possible by the advances in the dynamic reserve policies..
Academic Team Members Project Leader: Kory Hedman (Arizona State Univ., kory.hedman@asu.edu)
Team members: Muhong Zhang (Arizona State Univ muhong.zhang@asu.edu)
Marija Ilic (Carnegie Mellon Univ., milic@ece.cmu.edu)
Industry Team Members Feng Gao (ABB/Ventyx); Xing Wang (ALSTOM Grid); Jim Price (California ISO); Evangelos Farantatos (EPRI); Aidan Tuohy (EPRI); Eamonn Lannoye (EPRI); Bahman Daryanian (GE), Nikhil Kumar (GE); William Henson (ISO New England); Feng Zhao (ISO New England); Thomas Edmunds (LLNL); Liang Min (LLNL), Yonghong Chen (Midcontinent ISO); Nivad Navid (Midcontinent ISO); Marissa Hummon, (NREL); Andy Tillery (Southern Company)