A Bi-Level Framework for Modeling Two-Stage Electricity Spot Market Trading with Renewable Energy Participation  
Author Yining Zhang

 
Co-Author(s) Dequn Zhou; Hao Din

 
Abstract With the increasing electricity generated by renewable energy in the power system and the development of spot electricity market, spot trading is playing an important role in the consuming renewable electricity. However, the stochasticity, intermittency and volatility could damage the interests of renewable generators and the stability of electricity trading. To mitigate the adverse effects caused by uncertain renewable energy, this paper utilizes a bilevel programming method to model the trading process and outcome of the day-ahead spot market and the real-time spot market considering the participation of renewable energy. Taking wind power generation and photovoltaic power generation as examples, this paper uses Copula method to generate scenarios and probabilities of renewable energy generation, and calculates the optimal supply decisions of power generators, as well as the corresponding prices and revenues, which provides a basis for market administrators to avoid the risks arising from uncertain renewable energy. Further, this paper studies the effects of policy concerning mandatory energy storage deployment based on the bi-level programming model proposed. As a result, energy storage deployment helps mitigate the impact of renewable energy generation uncertainty on electricity supply. However, the absence of cost-sharing policy results in low energy storage utilization.

 
Keywords renewable energy generation; electricity spot market; uncertainty
   
    Article #:  DSBFI25-98
 
Proceedings of 3rd ISSAT International Conference on Data Science in Business, Finance and Industry
January 6-8, 2025 - Da Nang, Vietnam