Evaluating the impacts of flexible ramping products on the market equilibrium

摘要

Flexible ramping products, which are bid-based products recently proposed in CAISO and MISO markets, are designed to provide transparent economic incentives for flexible resources in case of the increasingly high penetration of renewables. In order to evaluate the impacts of flexible ramping products on the market equilibrium, a multi-period Nash-Cournot equilibrium model is established and the potential-function based solution method is adopted to transform the multi-individual profit-maximization problems into an integrated single-level optimization model. Numerical examples with several cases are also implemented and compared to show the impacts of the new market-based products on energy prices and the integration of renewables.