Deliverable Robust Ramping Products in Real-Time Markets

The increasing penetration of variable energy resources has led to more uncertainties in power systems. Flexible Ramping Products (FRP) have been adopted by several electricity markets to manage the uncertainties. We reveal that neglected line congestion for FRP may not only cause infeasibility, but also result in a failure of cost recovery. To address the deliverability issues on FRP, this paper proposes a new concept, Deliverable Robust Ramping Products (DRRP), in real-time markets. The DRRP includes generation ramping reserve and generation capacity reserve. The DRRP is deliverable and immunized against any predefined uncertainty. It also fully addresses the bid cost recovery issue caused by the line congestion in existing FRPs. The prices of DRRP are derived within the Affine Adjustable Robust Optimization (AARO) framework. These prices can be used to identify valuable reserves among available reserves and quantify the values of flexible resources that provide reserves. This paper also proposes a general approach to obtaining the time-decoupled prices for DRRP and generation, which can be used for the market settlement of the first interval only in real-time markets. Simulations on a 3-bus system and the IEEE 118-bus system are performed to illustrate the concept of DRRP and the advantages of DRRP compared to existing FRP.