Evaluation of Information Value for Solar Power Plants in Market Environment

Abstract

Uncertainty is not negligible in power systems, it affects the generation, transmission and utilization of electricity. Especially in electricity markets, the randomness and variability of generation or load will cause notable forecast errors and lead to economic losses of market participants. Due to the data explosion in recent few years, data have gradually become valuable information that can be mined, analyzed, and applied. Meanwhile, the utility that more abundant and accurate information could eliminate uncertainty is emerging. In this paper, solar power plants (SPPs) are selected as the object, the general mechanism in electricity markets is briefly introduced and the corresponding market optimization model is constructed. With the optimization model analytically solved, the impact of uncertainty is analyzed and the expressions of information value are derived. Besides, uniform, normal, logistic, and Laplace distribution are used in the evaluation of information value and compared. Finally, the case study is conducted to verify the theoretical results of information value and illustrate its significance.