Risk-Adjusted Unit Commitment for Systems with High Penetration of Renewables

This paper presents a framework for scheduling generation in power systems with high penetration of renewable energy resources (RERs). This framework aims to facilitate the participation of RERs in the day-ahead market (DAM). Specifically, it utilizes a risk segmentation technique that breaks bid curves of RERs into tranches with different grades of risk. Assigning a higher price to a tranche with greater risk can prevent an asset owner from incurring losses when the asset owner cannot produce the scheduled amount of energy in DAM and has to buy energy from the real-time market. In the proposed framework the system operator utilizes risk-segmented bids from RERs and reliability constraints to solve a risk-adjusted unit commitment problem. The resulting increased participation of RERs in DAM benefits the asset owners by reducing curtailment and consumers by lowering the DAM energy cost. The approach is validated on a 68-bus system representing the New York grid.