University of Cambridge > > Energy and Environment Group, Department of CST > Renewables as Reserve Providers; Turning a Challenge into an Opportunity

Renewables as Reserve Providers; Turning a Challenge into an Opportunity

Add to your list(s) Download to your calendar using vCal

If you have a question about this talk, please contact lyr24.

The expansion of renewable energy generation increases the need for short-term reserve facilities to compensate for their short-term variations. This makes reserve markets increasingly profitable and attractive for renewable energy producers (REPs), who are facing diminishing subsidies and returns. Policymakers would also value REPs as reserve providers because conventional reserves are generally carbon-intensive. The major hurdle is, however, that reserve markets require reliability, while renewables are intermittent. This brings financial risks to REPs and reliability risks to the system operators. Two remedies to alleviate these risks are intraday trading and storage. The open question is whether, these hedging instruments, individually or combined, can resolve the financial and reliability risks and facilitate REP ’S participation in reserve markets. This is currently unknown and, among others, depends on the micro-structure of the intraday markets, mainly distinguished as discrete (D-ID) or continuous (C-ID) markets. We study this problem by formulating the operation of a profit-maximizing REP , with and without storage, providing reserve services as a multi-stage stochastic integer program, separately with the support of D-ID or C-ID markets. We combine the Benders decomposition and stochastic dual dynamic programming algorithm (SDDP) to solve the problem efficiently. Our analysis of real data from the German market provides interesting insights into REPs’ participation in short-term reserve markets. Importantly, we find that C-ID trading is the best enabler among all, facilitating the profitable and reliable participation of REPs in the FCR market. In this case, batteries not only do not help FCR participation but also worsen the reliability. Conversely, D-ID markets do not help FCR participation and REPs need batteries for reliable and profitable FCR participation. Thus, system operators should discourage the use of batteries (for REPs) in the case of C-ID markets and encourage it in the case of D-ID markets.


Yashar Ghiassi-Farrokhfal is an Associate Professor at the Rotterdam School of Management, Erasmus University. Additionally, he serves as the academic director of smart energy and sustainability at the Erasmus Center for Data Analytics (ECDA) and holds the position of Erasmus Uni. scientific lead at the Centre of Energy System Intelligence (CESI). He obtained his Ph.D. from the University of Toronto, Canada in Electrical and Computer Engineering. He started his research in the energy domain when he was a post-doctoral fellow under the supervision of Prof. S. Keshav at UWaterloo, Canada. Since then, he has published numerous articles in esteemed journals and has organized numerous conferences and workshops in the field of energy transition. His involvement extends to various European and Dutch projects, including FlexSUS (municipal heat transition), MAGPIE (Energy transition in Ports), HyTROS (Hydrogen market), and Com2Heat (composite-based heat network). Employing a multi-disciplinary approach, he has delved into diverse facets of energy transitions such as sector coupling, microgrids, electric vehicles, hydrogen, energy storage, and market mechanisms at retail, wholesale, peer-to-peer, and bilateral levels.

This talk is part of the Energy and Environment Group, Department of CST series.

Tell a friend about this talk:

This talk is included in these lists:

Note that ex-directory lists are not shown.


© 2006-2024, University of Cambridge. Contact Us | Help and Documentation | Privacy and Publicity