Electricity market assessment in wind energy integrated power systems with the potential of flexibility: A boundary condition approach

This paper focuses on dynamic equilibrium considering the flexible ramp market and demand response resources. With ever-swelling installation of variable renewable energies, demand response programs can play a significant role in mitigating the system ramping deficiency. Hence, in this paper, the ramping capability of demand response resources in procuring system ramp requirement is considered. The strategic behavior of different players is modeled through a multi-leader-common-follower game, in which suppliers and demand response aggregators are laid as the leaders with the market operator as the single follower of the game. In addition, a dynamic forward rolling process to find equilibria in the real-time market is proposed. The effect of considering demand response resources and flexible ramp penalty price on the strategic behavior of players in equilibrium is evaluated. Finally, the effectiveness of the proposed approach in a three-firm system is verified. By illustrating the roles of demand response resources in mitigating ramping deficiency, the results show how penalty price on flexible ramp violation can pave the way for the formation of uplift payments. (C) 2022 Sharif University of Technology. All rights reserved.