Electricity Market Simulation Considering High Proportion of Renewable Energy Penetration

Abstract

The large-scale integration of renewable energy generation (REG) has become the future development trend of the power grid. In order to study the impact of large-scale REG participation in the electricity market (EM), this paper firstly models the bidding strategies of non-REG and REG participants. Secondly, establishes a market clearing model with the goal of maximizing social welfare. And mathematically describe the uncertainty of RE for wind power generation (WPG) and solar photovoltaic generation (SPG). Finally, set two scenarios for REG participants to bid at marginal cost and bid at the highest profit target. In this case, co-evolution and gurobi solvers are applied to simulate the development of the EM in which high- renewable renewable energy is involved. The results show that the participation of high proportion REG participants in the EM will have a huge impact on marginal electricity prices and welfare distribution.