Reducing Renewable Energy Output Deviation Using Demand-Side Flexibility

The number of renewable energy providers in electricity markets is growing. As the renewable energy resource outputs can not be accurately predicted in day-ahead stage, renewable energy providers need to reduce the energy output deviation between day-ahead and real-time markets in real-time stage. This paper proposes a framework to reduce this deviation. Firstly, renewable energy providers determine the energy outputs to be settled according to the day-ahead bids and real-time output. Then, a two-level game is used to model the energy settlement process between energy providers and flexible users. In the upper level, energy providers compete to set electricity prices to make profits. In the lower level, flexible users respond to electricity prices and adjust energy usage by playing an evolutionary game. Simulation results prove the practicality of the proposed framework.