Definition of Subject
With increasing concern regarding climate change and emissions from conventional power plants, new markets have developed that allow for the trading of the clean energy attributes of wind and other renewable energy sources. We discuss these green power markets and their role in demonstrating compliance with renewable energy standards. Wind energy can also be bought and sold in wholesale energy markets, exchanges where bulk energy is bought and sold. In some areas, capacity markets exist that provide payment for installed capacity that is available when needed. Capacity markets are generally based on the capacity contribution that a power plant or responsive load can make toward planning reserves, which is called the capacity credit or capacity value. The general motivation behind a capacity market is to ensure sufficient revenue for the generator and sufficient...
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Abbreviations
- Ancillary services:
-
Additional services that are required to manage the delivery of energy. Examples include reactive power support, balancing and regulation, and operating reserves.
- Balancing area:
-
The collection of generation, transmission, and loads within a metered boundary where a power system operator maintains the load-resource balance.
- Capacity markets:
-
Market-based method of procuring sufficient generation and demand response to assure that future load and reserve requirements will be met.
- Day-ahead market:
-
Hourly wholesale electricity market that is cleared the day before the operating day.
- Real-time market:
-
Hourly or sub-hourly wholesale market that is cleared shortly before the operating interval.
- Reserves (operating):
-
Additional generating capacity that is available in real time or near real time if needed to compensate for unanticipated generator failures (contingency reserves) or unanticipated changes in load or wind generation (load-following reserve).
- Reserves (planning):
-
Generating capacity that is built in excess of predicted load in a future time period. This excess reserve margin is calculated to account for unexpected failures of power plants, ensuring an adequate supply of electricity at all times.
- Self-schedule:
-
Decision by a generator operator to operate at a specific time regardless of price.
- Unit commitment:
-
The process of determining the optimal mix of generators that must be started or otherwise made available one or more days in advance of need.
- Wind energy penetration:
-
Percentage of wind relative to the rest of the system. This is typically calculated using energy on an annual basis; the percentage of total energy demand for a year that wind energy provides.
- Wholesale electricity markets:
-
Wholesale bulk power market that facilitates the exchange of energy among buyers and sellers.
Bibliography
Primary Literature
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Books and Reviews
Bird L, Kreycik C, Friedman B (2009) Green power marketing in the United States: a status report (2008 Data). NREL/TP-6A2-46581. National Renewable Energy Laboratory, Golden http://www.nrel.gov/docs/fy09osti/46581.pdf. Accessed Sep 2009
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Milligan, M., Bird, L., Tegen, S., Porter, K., Fink, S., Kirby, B. (2013). Wind Power: Economy, Market, Subsidies, Payment Mechanisms, and Capacity Credit. In: Kaltschmitt, M., Themelis, N.J., Bronicki, L.Y., Söder, L., Vega, L.A. (eds) Renewable Energy Systems. Springer, New York, NY. https://doi.org/10.1007/978-1-4614-5820-3_89
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