Integration of renewable energy: Managing renewables in power markets

Abstract

Since renewable energy is well known as a clean source of power, the incentive for providers and customers to join the renewable energy boom is coming in different ways. Under the forcing policy, the wind generation will be guaranteed to be purchased in the wholesale market if wind generators bid at their marginal price. However, a forcing policy may lead to infeasibility if wind spillage is not allowed. The numerical results in this paper show that integrating more wind generation may lead to market inefficiency or more greenhouse gas emissions, e.g. CO2. To test this hypothesis a deterministic unit commitment was solved by AMPL by modeling power markets and calculating operating costs. With the consideration of the start-up costs and ramping emissions, the cost of emissions is compensated by the generators.