Variability of the operation cost due to the intermittency of renewable generation

The integration of renewable generation plants brings with it new technical and economic challenges. One of the economic challenges is caused by the intermittency of renewable production. Electrical power system operators assign a spinning reserve margin to mitigate the impact of intermittency and ensure the operational reliability of the electrical generation system. The allocation of a spinning reserve causes the conventional generating units of the electrical power system to operate at a reduced power in order to provide a reserve margin. For this reason, assigning a spinning reserve margin involves more generation units being in service, generating an economic impact on the operating cost of the electrical power system. This article presents an analysis of the variation in the operating cost of the electrical power system with respect to the reserve requirement attributable to the intermittency of renewable generation. Additionally, this study presents an analysis of the variation in the operating cost of the electrical power system in the face of greater availability in the operating flexibility of the hydraulic and thermal generation units.