Reserve and Peak Shaving Cost Allocation for Volatile Renewable Generation in Power System

With the rapid development of renewable energy, its inherent uncertainty and volatility have become a significant issue for the safe and economical operation of the power system. To ensure the effective integration of renewable energy, the ancillary service costs are continuously increasing. It’s unfair to allocate the cost based on the proportion of on-grid electricity according to the cost causality principle. This paper proposes an allocation method for reserve and peak shaving cost. Firstly, the uncertainty of renewable energy is modeled using kernel density estimation (KDE) and Copula theory. Subsequently, a reserve - peak shaving random optimization model is constructed based on chance constraint, and the reserve and peak shaving costs are obtained. Furthermore, the cost allocation method based on Shapley value is proposed to quantify the marginal contribution of each participant. Case study demonstrates that the method effectively allocates the costs to the sources of uncertainty and volatility.