A Cost-Based Approach to Elicit Ancillary Service Tariffs from Unified Capacity and Energy Tariffs

Download

index.pdf

Date

2022-01-01

Author

Sezer, Hikmet
Güven, Ali Nezih
Tör, Osman Bülent
Cebeci, Mahmut Erkut
Teimourzadeh, Saeed

Metadata

Show full item record

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Item Usage Stats

190
views

74
downloads

Establishing separated markets for capacity, energy, and ancillary services (AS) is one of the key steps to liberalize electricity sector and realize electricity markets. This study aims at eliciting AS tariffs from unified capacity and energy tariffs through a cost-based approach. In the proposed framework, maintaining annual revenue requirements of the power plants is considered as the main objective while separating the AS tariff from unified tariffs. The conducted study considers two types of unified tariffs, i.e., capacity and energy tariffs, and offers proper AS eliciting scheme for each type of unified tariffs. The main challenges addressed here are: 1) incentivizing\penalizing AS provision more\less than scheduled amount which is tackled through an incentive factor, and 2) preventing overall tariff increment (customer tariff) after eliciting AS tariff which is addressed by applying fixing constraint to the overall tariff at before and after AS tariff eliciting conditions. Last but not the least, AS trade between adjacent utilities and calculating the benefits from this trade are addressed. The effectiveness of the proposed methodology is assured through numerical investigations.

Subject Keywords

Ancillary Service, Balancing market, Frequency regulation, Capacity Tariff, Energy Tariff

URI

https://hdl.handle.net/11511/98085

Journal

Balkan Journal of Electrical and Computer Engineering

DOI

https://doi.org/10.17694/bajece.711158

Collections

Department of Electrical and Electronics Engineering, Article

Suggestions

OpenMETU
Core

A soft computing approach to projecting locational marginal price Nwulu, Nnamdi I.; Fahrioglu, Murat (2013-05-01) The increased deregulation of electricity markets in most nations of the world in recent years has made it imperative that electricity utilities design accurate and efficient mechanisms for determining locational marginal price (LMP) in power systems. This paper presents a comparison of two soft computing-based schemes: Artificial neural networks and support vector machines for the projection of LMP. Our system has useful power system parameters as inputs and the LMP as output. Experimental results obtained...
An integrated day-ahead market clearing model: Incorporating paradoxically rejected/accepted orders and a case study YORUKOGLU, Sinan; Avşar, Zeynep Müge; Kat, Bora (2018-10-01) In the electricity day-ahead markets (DAMs), market participants place their orders in the form of desired/accepted price levels for the submitted quantities. The market operator evaluates these orders and announces the clearing quantities and market clearing prices (MCPs) within an hour. In this paper, a mathematical model is proposed for the exact solution of clearing electricity DAM with a focus on the current Turkish system. The model is a non-linear programming (NLP) problem that maximizes total social...
A decision support tool for feasibility assessment of hydro electrical power plant projects Ercan, Noyan; Birgönül, Mustafa Talat; Dikmen Toker, İrem; Department of Civil Engineering (2011) The objective of this thesis is to develop a decision support tool to assess the feasibility of a hydro electrical power plant (HEPP) investment option by estimating its profitability under various scenarios. The decision support tool may help the decision makers to understand critical parameters that affect the internal rate of return (IRR) of a HEPP investment, create realistic scenarios by assigning different values to these parameters and monitor profitability under various scenarios. The information an...
Application of a Hybrid Machine Learning model on short term electricty demand prediction Assar, Ahmed Khaled Ahmed Farouk; Fahrioğlu, Murat; Sustainable Environment and Energy Systems (2022-2) Electricity demand forecasting is an important procedure in the electricity market and plays a great role in assuring a sustainable and efficient operation chain. By accurately forecasting the demand, one can see a considerable reduction in production costs as well as saving energy resources. Therefore, optimizing the demand forecasting techniques became an inseparable goal of power economics, leading to the introduction of machine learning to this sector that proved to be superior to other pre-defined alte...
A novel methodology for medıum and long-term electricity market modeling İlseven, Engin; Göl, Murat; Department of Electrical and Electronics Engineering (2020-11-15) In the electricity market, there is a considerable degree of uncertainty in electricity demand, supply, and price due to the uncertainty in parameters such as economic growth, weather conditions, fuel prices, and timing of new investments, etc. These factors in return affect the predictability of the electricity market. This thesis aims to increase the predictability and observability of the electricity market by means of a suitable and validated electricity market modeling methodology designed for medium a...

Citation Formats

H. Sezer, A. N. Güven, O. B. Tör, M. E. Cebeci, and S. Teimourzadeh, “A Cost-Based Approach to Elicit Ancillary Service Tariffs from Unified Capacity and Energy Tariffs,” Balkan Journal of Electrical and Computer Engineering, vol. 10, no. 1, pp. 53–63, 2022, Accessed: 00, 2022. [Online]. Available: https://hdl.handle.net/11511/98085.