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Day-Ahead Versus Intraday Valuation of Flexibility for Photovoltaic and Wind Power Systems

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Operations Research Proceedings 2014

Part of the book series: Operations Research Proceedings ((ORP))

Abstract

This paper takes the perspective of a photovoltaic (PV) or wind power plant operator who wants to optimally allocate demand-side flexibility to maximize realizable production value. We compare two allocation alternatives: (1) use of flexible loads to maximize relative day-ahead market value by shifting the portfolio balance in view of day-ahead prices; (2) use of flexible loads in intraday operations to minimize the costs incurred when balancing forecast errors. We argue that the second alternative yields a greater average value than the first in continuous-trade intraday markets. The argument is backed by a market data analysis for Germany in 2013.

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Notes

  1. 1.

    The amount of slots within \(R^t\) depends on the time span by which demand can be shifted and on the granularity by which time is dissected into slots (e.g., 15 min versus one hour).

  2. 2.

    Note that these requirements are given in order to focus on the aspect under investigation—relative market value optimization for PV or wind. Relaxing the constraints is easily possible; however, it would introduce other effects, i.e. short day-ahead portfolios and demand volatility.

  3. 3.

    In Germany, the bulk of PV and wind power production is currently integrated into the market by the four transmission system operators (TSOs). The 61 % short positions refer to actual production deviations from forecasts, at an aggreagate level (sum of TSOs) for 15-min delivery slots.

  4. 4.

    This means that demand can be brought forward or postponed by up to two hours.

  5. 5.

    One hour covers four 15-min intervals. Considering the two hours prior and after the current delivery hour, we get a total of 17 slots, including the current slot.

References

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Author information

Authors and Affiliations

  1. RWTH Aachen University, Templergraben 55, 52056, Aachen, Germany

    Ernesto Garnier

  2. Institute for Future Energy Consumer Needs and Behavior (FCN), School of Business and Economics/E.ON Energy Research Center, RWTH Aachen University, Mathieustrasse 10, 52074, Aachen, Germany

    Reinhard Madlener

Authors
  1. Ernesto Garnier
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  2. Reinhard Madlener
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Corresponding authors

Correspondence to Ernesto Garnier or Reinhard Madlener .

Editor information

Editors and Affiliations

  1. Operations Research, RWTH Aachen University, Aachen, Germany

    Marco Lübbecke

  2. Lehrstuhl II für Mathematik, RWTH Aachen University, Aachen, Germany

    Arie Koster

  3. RWTH Aachen University, Aachen, Nordrhein-Westfalen, Germany

    Peter Letmathe

  4. E.ON Energy Research Center, RWTH Aachen University, Aachen, Nordrhein-Westfalen, Germany

    Reinhard Madlener

  5. Management Science, RWTH Aachen University, Aachen, Nordrhein-Westfalen, Germany

    Britta Peis

  6. Chair of Operations Management, RWTH Aachen University, Aachen, Germany

    Grit Walther

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Garnier, E., Madlener, R. (2016). Day-Ahead Versus Intraday Valuation of Flexibility for Photovoltaic and Wind Power Systems. In: Lübbecke, M., Koster, A., Letmathe, P., Madlener, R., Peis, B., Walther, G. (eds) Operations Research Proceedings 2014. Operations Research Proceedings. Springer, Cham. https://doi.org/10.1007/978-3-319-28697-6_24

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