Numeric Study of Conventional Generators Strategic Bidding With Reliability Pricing Model Demand Curve in a Renewable-Integrated Capacity Market

The growth of renewable energy has disrupted energy markets, reducing profitability for conventional generators by lowering prices. Capacity markets have emerged to address this, offering stable revenue streams. This paper presents a numeric study for a capacity market that integrates RES and conventional generators, analysing how costs and bidding strategies affect market outcomes. A case study using the IEEE 6-bus system highlights the impact of cost variations and the role of zero-bid strategies in securing capacity market participation. The results emphasize cost efficiency and strategic bidding as critical for conventional generators' profitability in competitive, RES-driven markets.

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Published
2024-09-20
DOI
https://doi.org/10.1109/icpre62586.2024.10768455
Primary Topic
Energy, Environment, and Transportation Policies
Type
article
Field-Weighted Citation Impact
0.00

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article

Numeric Study of Conventional Generators Strategic Bidding With Reliability Pricing Model Demand Curve in a Renewable-Integrated Capacity Market

Young Way Teh, Ce Shang, Qian Cao, Pan Lv
Energy, Environment, and Transportation Policies
article

Numeric Study of Conventional Generators Strategic Bidding With Reliability Pricing Model Demand Curve in a Renewable-Integrated Capacity Market

Young Way Teh, Ce Shang, Qian Cao, Pan Lv
article en

Abstract

The growth of renewable energy has disrupted energy markets, reducing profitability for conventional generators by lowering prices. Capacity markets have emerged to address this, offering stable revenue streams. This paper presents a numeric study for a capacity market that integrates RES and conventional generators, analysing how costs and bidding strategies affect market outcomes. A case study using the IEEE 6-bus system highlights the impact of cost variations and the role of zero-bid strategies in securing capacity market participation. The results emphasize cost efficiency and strategic bidding as critical for conventional generators' profitability in competitive, RES-driven markets.

State Grid Corporation of China (China) (CN), Shanghai Jiao Tong University (CN)
National Natural Science Foundation of China, State Grid Corporation of China
Affordable and clean energy
Openalex Percentile: Top 84%
Energy, Environment, and Transportation Policies
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