The Effects of Spinning Reserve Uncertainty and Demand Response Programs on Transmission-Constrained Bidding Strategy

In the electricity market, generation company attempts to maximize their profit in a bidding strategy approach. As the transactions of power and spinning reserve are done in a transmission network, consideration of transmission constraints and spinning reserve uncertainties becomes necessary. In the...

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Main Authors: Mohammad Esmaeil Nazari, Marzieh Roodsarabi, Ehsan Modaressi Ghazvini, Ahmad Moddaresi Ghazvini
Format: Article
Language:English
Published: Amirkabir University of Technology 2024-03-01
Series:AUT Journal of Electrical Engineering
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Online Access:https://eej.aut.ac.ir/article_5314_0cac5ce222bec2629431a84c0d1522ee.pdf
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author Mohammad Esmaeil Nazari
Marzieh Roodsarabi
Ehsan Modaressi Ghazvini
Ahmad Moddaresi Ghazvini
author_facet Mohammad Esmaeil Nazari
Marzieh Roodsarabi
Ehsan Modaressi Ghazvini
Ahmad Moddaresi Ghazvini
author_sort Mohammad Esmaeil Nazari
collection DOAJ
description In the electricity market, generation company attempts to maximize their profit in a bidding strategy approach. As the transactions of power and spinning reserve are done in a transmission network, consideration of transmission constraints and spinning reserve uncertainties becomes necessary. In the bidding strategy problem, there are various demand uncertainties. Usually, electricity markets consider a fixed spinning reserve with fixed request probability to ensure that demand is met. However, the actual spinning reserve is stochastic in quantity and requests hours that should be modeled and simulated. Another demand uncertainty is demand response programs include various stochastic types. One of the most famous demand response programs is electric vehicle parking with stochastic charging/discharging amounts and hours. The objection of this study is solving the bidding strategy problem considering transmission constraints, spinning reserve uncertainty, and electric vehicle parking as a demand response program based on a heuristic approach. An actual spinning reserve model using normal distribution is proposed and three case studies are presented. In the first case, improvement in profit of the generation company by 4.15-47.95% and 20.84-31.30% under single and double-sided auctions are reached, respectively. Where transmission constraints and spinning reserve uncertainty are considered, the optimal bidding strategy problem is solved in the energy and spinning reserve market for three-generation companies in the IEEE 6-bus network where transmission constraints are satisfied at all scenarios of spinning reserve requests. When electric vehicle parking is considered, it is shown that demand response programs have direct effects of bidding parameters such as market clearing price, generation companies power awarded and profits.
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spelling doaj-art-c8bb5cc94d184a59909e368b41d3ebdd2025-08-20T03:26:44ZengAmirkabir University of TechnologyAUT Journal of Electrical Engineering2588-29102588-29292024-03-0156224526810.22060/eej.2023.22502.55465314The Effects of Spinning Reserve Uncertainty and Demand Response Programs on Transmission-Constrained Bidding StrategyMohammad Esmaeil Nazari0Marzieh Roodsarabi1Ehsan Modaressi Ghazvini2Ahmad Moddaresi Ghazvini3Electrical and Computer Engineering Group, Golpayegan College of Engineering, Isfahan University of Technology, Golpayegan, 87717- 67498, IranDepartment of Electrical Engineering, Amirkabir University of Technology, Tehran, IranDepartment of Electrical Engineering, South Tehran Branch, Islamic Azad University, Tehran, IranDepartment of Electrical Engineering, South Tehran Branch, Islamic Azad University, Tehran, IranIn the electricity market, generation company attempts to maximize their profit in a bidding strategy approach. As the transactions of power and spinning reserve are done in a transmission network, consideration of transmission constraints and spinning reserve uncertainties becomes necessary. In the bidding strategy problem, there are various demand uncertainties. Usually, electricity markets consider a fixed spinning reserve with fixed request probability to ensure that demand is met. However, the actual spinning reserve is stochastic in quantity and requests hours that should be modeled and simulated. Another demand uncertainty is demand response programs include various stochastic types. One of the most famous demand response programs is electric vehicle parking with stochastic charging/discharging amounts and hours. The objection of this study is solving the bidding strategy problem considering transmission constraints, spinning reserve uncertainty, and electric vehicle parking as a demand response program based on a heuristic approach. An actual spinning reserve model using normal distribution is proposed and three case studies are presented. In the first case, improvement in profit of the generation company by 4.15-47.95% and 20.84-31.30% under single and double-sided auctions are reached, respectively. Where transmission constraints and spinning reserve uncertainty are considered, the optimal bidding strategy problem is solved in the energy and spinning reserve market for three-generation companies in the IEEE 6-bus network where transmission constraints are satisfied at all scenarios of spinning reserve requests. When electric vehicle parking is considered, it is shown that demand response programs have direct effects of bidding parameters such as market clearing price, generation companies power awarded and profits.https://eej.aut.ac.ir/article_5314_0cac5ce222bec2629431a84c0d1522ee.pdfbidding strategydemand responseheuristic optimizationspinning reserve uncertaintytransmission constraints
spellingShingle Mohammad Esmaeil Nazari
Marzieh Roodsarabi
Ehsan Modaressi Ghazvini
Ahmad Moddaresi Ghazvini
The Effects of Spinning Reserve Uncertainty and Demand Response Programs on Transmission-Constrained Bidding Strategy
AUT Journal of Electrical Engineering
bidding strategy
demand response
heuristic optimization
spinning reserve uncertainty
transmission constraints
title The Effects of Spinning Reserve Uncertainty and Demand Response Programs on Transmission-Constrained Bidding Strategy
title_full The Effects of Spinning Reserve Uncertainty and Demand Response Programs on Transmission-Constrained Bidding Strategy
title_fullStr The Effects of Spinning Reserve Uncertainty and Demand Response Programs on Transmission-Constrained Bidding Strategy
title_full_unstemmed The Effects of Spinning Reserve Uncertainty and Demand Response Programs on Transmission-Constrained Bidding Strategy
title_short The Effects of Spinning Reserve Uncertainty and Demand Response Programs on Transmission-Constrained Bidding Strategy
title_sort effects of spinning reserve uncertainty and demand response programs on transmission constrained bidding strategy
topic bidding strategy
demand response
heuristic optimization
spinning reserve uncertainty
transmission constraints
url https://eej.aut.ac.ir/article_5314_0cac5ce222bec2629431a84c0d1522ee.pdf
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