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At least 19 records
All sourcesNASA NTRSDOE OSTI
DOE OSTI2023

Market Pricing and Settlements Analysis Considering Capacity Sharing and Reserve Substitutions of Operating Reserve Products

Electricity market pricing and settlement are the key signals for real-time dispatch and long-term investment decisions. Regional transmission operators (RTOs) in the U.S. adopt uniform pricing scheme, which is based on the marginal costs of supplying an incremental MW of electric services. The marginal cost of an electric service is highly dependent on the constraints in the pricing models of RTOs. A slight difference in constraint modeling of pricing model on energy and ancillary services could result in drastically different market clearing prices (MCPs), cleared reserve quantities, and associated revenue. RTOs in the U.S. have various market designs and assumptions in ancillary services modeling in capacity sharing and reserve substitutes. This paper examines four combination models of capacity sharing and reserve substitutes and analyzes the associated market implications. The numerical results present that 1) cascading reserve requirements have direct impact on reserve pricing schemes 2) both cascading reserve requirements and sharing capacity have significant impact on reserve MCPs and locational marginal prices, and thus result in drastically different reserve revenue, energy revenue, generation cost, and generation profit.

ancillary services↗
DOE OSTI2023

Impact of Wildfires on Solar Generation, Reserves and Energy Prices

Wildfire seasons in the Western U.S. become more prolonged and intense in recent years bringing significant variability and uncertainty of solar generation. It greatly challenges the bulk power system and electricity market operation managed by California Independent System Operator (CAISO) as California leads both the wildfire records and the solar power integration. This study presents a screening-level analysis of the impact of wildfires on solar generation, operating reserve and energy prices applying historical real-world wildfire and market operation data. To the best of the authors knowledge, it is a first-of-its-kind study and will lay the foundation for market impact quantification and wildfire mitigation strategies design based on projected wildfire activities in future years.

electricity price↗
NASA NTRS2012

The Economics of NASA Mission Cost Reserves

Increases in NASA mission costs are well-noted but not well-understood, and there is little evidence that they are decreasing in frequency or amount over time. The need to control spending has led to analysis of the causes and magnitude of historical mission overruns, and many program control efforts are being implemented to attempt to prevent or mitigate the problem (NPR 7120). However, cost overruns have not abated, and while some direct causes of increased spending may be obvious (requirements creep, launch delays, directed changes, etc.), the underlying impetus to spend past the original budget may be more subtle. Gaining better insight into the causes of cost overruns will help NASA and its contracting organizations to avoid .them. This paper hypothesizes that one cause of NASA mission cost overruns is that the availability of reserves gives project team members an incentive to make decisions and behave in ways that increase costs. We theorize that the presence of reserves is a contributing factor to cost overruns because it causes organizations to use their funds less efficiently or to control spending less effectively. We draw a comparison to the insurance industry concept of moral hazard, the phenomenon that the presence of insurance causes insureds to have more frequent and higher insurance losses, and we attempt to apply actuarial techniques to quantifY the increase in the expected cost of a mission due to the availability of reserves. We create a theoretical model of reserve spending motivation by defining a variable ReserveSpending as a function of total reserves. This function has a positive slope; for every dollar of reserves available, there is a positive probability of spending it. Finally, the function should be concave down; the probability of spending each incremental dollar of reserves decreases progressively. We test the model against available NASA CADRe data by examining missions with reserve dollars initially available and testing whether they are more likely to spend those dollars, and whether larger levels of reserves lead to higher cost overruns. Finally, we address the question of how to prevent reserves from increasing mission spending without increasing cost risk to projects budgeted without any reserves. Is there a "sweet spot"? How can we derive the maximum benefit associated with risk reduction from reserves while minimizing the effects of reserve spending motivation?

Whitley, Sally↗
DOE OSTI2024

Solar and Wind Forecast Error Reserve Sharing in a Multi-Utility Region

As electricity systems transition to higher levels of solar and wind generation, electric system operators will likely need to hold additional reserves to manage the forecast error associated with these resources. Because wind and solar forecast errors tend to be poorly correlated across space, system operators can reduce their reserve requirements by sharing reserves. This paper examines the value of forecast error reserve sharing among balancing areas in the Southeast United States. It finds that forecast error reserve requirements increase linearly with growth in solar and wind generation capacity but that reserve sharing can significantly reduce physical (MW) reserve requirements (from 25%-26% to 18%-19% of average load in high solar scenarios). It finds that the value of forecast error reserve sharing declines with higher levels of solar and wind generation, due to lower wholesale energy and reserve prices. Even with declines in wholesale prices, forecast error reserve sharing can still provide substantial value (as much as $\$$400 million per year in a high solar scenario), though with higher levels of solar, wind, and electricity storage, this value is increasingly tied to avoiding scarcity prices. The results suggest the importance of coordinated capacity expansion planning for forecast error reserve sharing.

14 SOLAR ENERGY↗
DOE OSTI2023

Reserve and energy scarcity pricing in United States power markets: A comparative review of principles and practices

Here, errors in forecasting load and renewable-based generation in restructured power systems mean that independent system operators (ISOs) must procure sufficient operating reserves to keep the real-time operation of the system reliable and secure. But when procured reserves turn out to be insufficient in real-time due to the lack of resource capacity or ramp capability, operators often set higher prices for reserves and energy to encourage more supply, and to motivate consumers to decrease usage or shift it to other times. This procedure, which is called scarcity or shortage pricing, is a core feature of U.S. electricity markets. It is receiving increased attention from market designers and stakeholders because scarcity will become more important for spot price formation in the future with the increased penetration of zero-marginal cost renewables, and the shrinking role of fuel costs in setting prices. Scarcity pricing is implemented in various ways by different ISOs. These differences have practical implications for the level of prices and incentives for investment, operations, and demand modification. In this paper, general approaches and specific calculation procedures for reserve and energy scarcity pricing practices and calculations across the seven ISO-based U.S. power markets are reviewed and compared. A consistent terminology is used to facilitate the comparison. Current scarcity pricing practices are grouped into three approaches: (1) imposing an adder after the spot market is run; (2) including stepwise demand curves within market clearing procedures for non-contingency reserve products (e.g., the novel flexiramp product), which tends to yield longer right tails for energy scarcity premium curves; and (3) having stepwise demand curves for traditional contingency reserve products only, which results in shorter right tails in energy scarcity curves. A generic numerical example is presented to highlight the large practical differences among the reserve scarcity pricing approaches and specific implementations. To further investigate factors that contribute the most to demand curves differences among ISOs, a sensitivity analysis is performed. This analysis shows that the largest source of differences among the curves is the scarcity prices assumed in the case of severe scarcity, while the number of steps used and whether flexiramp is considered also yields important differences in scarcity prices. As renewable penetration increases, it will become increasingly crucial to employ administrative demand curves so that spot prices more effectively motivate supply and demand adjustments exactly when and where they are needed. This study shows that the different assumptions yield very different scarcity premiums for reserves and energy, and are likely to provide divergent incentives for resources to respond to shortages. It is concluded that to promote market efficiency, a reserve shortage demand curve should have at least three features: inclusion of the marginal value of reserve products at each shortage level, consideration of the magnitude and probability of supply contingencies, and avoidance of abrupt price discontinuities that can cause excessively volatile market outcomes.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗
DOE OSTI2022

A reforecasting-based dynamic reserve estimation for variable renewable generation and demand uncertainty

The installed capacity of renewables-based energy sources has been increasing in traditional power systems. In order to accommodate the increased variability and uncertainty associated with the deeper penetration of renewable sources like solar and wind, adjusted amounts of dynamic reserve are needed. Although probabilistic dynamic reserve estimation methods have been previously developed, most of them consider the uncertainty to be represented by parametric density functions that tend to perform poorly under extreme events and, moreover, neglect uncertainty introduced by the forecasting model itself. Toward addressing these limitations, this work presents, for the first time, a dynamic reserve estimation method for flexibility that incorporates nonparametric density estimation and a machine learning based reforecasting to provide a day-ahead prediction of the mean and spread of uncertainty around the base forecast. The prediction is, in turn, used to estimate the up and down reserve relative to the base forecast. Here, the present method takes various endogenous and exogenous features, including the calendar variables, as input to estimate the day-ahead reserve. Using a combination of reforecasting and dynamic reserve estimation techniques, the method is shown to adjust better to the dynamic nature of reserve requirements providing only what is needed to accommodate the expected deviations. Considering California Independent System Operator (CAISO) solar, wind and load data over an 18 month period, up to 67% reduction in the amount of reserve capacity needed for a one day reserve and reserve penalty for solar uncertainty is demonstrated. Additionally, the risk of reserve insufficiency in meeting the net demand is reduced by 20% with the proposed method.

14 SOLAR ENERGY↗
DOE OSTI2021

Operating Reserves in ReEDS

This presentation provides an overview of the formulation for operating reserves in the Regional Energy Deployment System (ReEDS), a capacity expansion model. It describes the three reserve products modeled in ReEDS--regulation, spinning (contingency), and flexibility--and highlights recent updates to the modeling approach, including modifications to how storage provides reserves, the constraints on commitment for generators that provide reserves, and the costs for thermal units to provide spinning reserve. The presentation benchmarks operating reserve provision in ReEDS against comparable simulations in PLEXOS, finding that the improved formulation is different but yields results that are holistically similar to those in production cost modeling. In this presentation we also investigate the impact of different reserve options in the model (e.g., allowing wind and solar to provide operating reserves) on the solution. The results thus far indicate that most switches related to operating reserves exert little influence on the outcome on the results. Future work will continue to explore operating reserves in capacity expansion models, particularly for models with different temporal resolution.

14 SOLAR ENERGY↗
DOE OSTI2022

An Analysis of PNM's Renewable Reserve Requirements to Meet New Mexico's Decarbonization Goals

Over the next three years, the Public Service Company of New Mexico (PNM) plans to increase utility-scale solar photovoltaic (PV) capacity from today’s roughly 330MW to about 1600MW. This massive increase in variable generation—from about 15% to 75% of peak load—will require changes in how PNM operates their system. We characterize the 5 and 30-minute solar and wind forecast errors that the system is likely to experience in order to determine the level of reserves needed to counteract such events. Our focus in this study is on negative forecast error (in other words, shortfalls relative to forecast) – whereas excess variable generation can be curtailed if needed, a shortfall must be compensated for to avoid loss of load. Calculating forecast error requires the use of the same forecasting methods that PNM uses or a reasonable approximation thereof. For wind, we use a persistence forecast on actual 5-minute 2019 wind output data (scaled up to reflect the amount of wind capacity planned for 2025). For solar, we use a formula incorporating the clear sky index (CSI) for the forecast. As the solar on the grid now is a small fraction of what is planned for 2025, we generated 5-minute solar data using 2019 weather inputs. We find that to handle 99.9% of the 5-minute negative forecast errors, a maximum of 275MW of variable generation reserve during daylight hours, and a maximum of 75MW during non-daylight hours, should be sufficient. Note that this variable generation reserve is an additional reserve category that specifies reserves over and above what are currently carried for contingency reserve. This would require a significant increase in reserve relative to what PNM currently carries or can call upon from other utilities per reserve sharing agreements. This variable generation reserve specification may overestimate the actual level needed to deal with PNM’s planned variable generation in 2025. The forecasting methodologies used in this study likely underperform PNM’s forecasting – and better forecasting allows for less reserve. To obtain more precise estimates, it is necessary to consider load and use the same forecasting inputs and methods used by PNM.

14 SOLAR ENERGY↗
DOE OSTI2024

Solar and Wind Forecast Error Reserve Sharing in a Multi-Utility Region

As electricity systems transition to higher levels of solar and wind generation, electric system operators will likely need to hold additional reserves to manage solar and wind forecast error. Because solar and wind forecast errors tend to be weakly correlated across space, system operators can reduce their reserve requirements by sharing reserves. This paper examines the benefits of forecast error reserve sharing among balancing areas in the Southeastern United States, in scenarios in which solar and wind generation ranges from 34% to 65% of total generation. It finds that day-ahead forecast error reserve requirements increase linearly with growth in solar and wind generation capacity (6%-10% of total capacity), but that reserve sharing can significantly reduce these requirements (by 6%-29%). It finds that, in economic terms, the value of forecast error reserve sharing ($\$$0.09-$\$$1.24 billion per year, $\$$0.12-$\$$1.68/MWh of load across scenarios) tends to decline with higher levels of solar and wind generation, due to lower reserve and energy prices. Even with declines in reserve prices, forecast error reserve sharing can still provide substantial value, though with higher levels of solar, wind, and electricity storage this value is increasingly tied to avoiding scarcity prices.

14 SOLAR ENERGY↗
DOE OSTI2023

NREM sleep as a novel protective cognitive reserve factor in the face of Alzheimer's disease pathology

Alzheimer’s disease (AD) pathology impairs cognitive function. Yet some individuals with high amounts of AD pathology suffer marked memory impairment, while others with the same degree of pathology burden show little impairment. Why is this? One proposed explanation is cognitive reserve i.e., factors that confer resilience against, or compensation for the effects of AD pathology. Deep NREM slow wave sleep (SWS) is recognized to enhance functions of learning and memory in healthy older adults. However, that the quality of NREM SWS (NREM slow wave activity, SWA) represents a novel cognitive reserve factor in older adults with AD pathology, thereby providing compensation against memory dysfunction otherwise caused by high AD pathology burden, remains unknown. Here, we tested this hypothesis in cognitively normal older adults (N = 62) by combining 11 C-PiB (Pittsburgh compound B) positron emission tomography (PET) scanning for the quantification of β-amyloid (Aβ) with sleep electroencephalography (EEG) recordings to quantify NREM SWA and a hippocampal-dependent face-name learning task. We demonstrated that NREM SWA significantly moderates the effect of Aβ status on memory function. Specifically, NREM SWA selectively supported superior memory function in individuals suffering high Aβ burden, i.e., those most in need of cognitive reserve (B = 2.694, p = 0.019). In contrast, those without significant Aβ pathological burden, and thus without the same need for cognitive reserve, did not similarly benefit from the presence of NREM SWA (B = -0.115, p = 0.876). This interaction between NREM SWA and Aβ status predicting memory function was significant after correcting for age, sex, Body Mass Index, gray matter atrophy, and previously identified cognitive reserve factors, such as education and physical activity (p = 0.042). These findings indicate that NREM SWA is a novel cognitive reserve factor providing resilience against the memory impairment otherwise caused by high AD pathology burden. Furthermore, this cognitive reserve function of NREM SWA remained significant when accounting both for covariates, and factors previously linked to resilience, suggesting that sleep might be an independent cognitive reserve resource. Beyond such mechanistic insights are potential therapeutic implications. Unlike many other cognitive reserve factors (e.g., years of education, prior job complexity), sleep is a modifiable factor. As such, it represents an intervention possibility that may aid the preservation of cognitive function in the face of AD pathology, both present moment and longitudinally.

60 APPLIED LIFE SCIENCES↗
DOE OSTI2023

Revising the dynamic energy budget theory with a new reserve mobilization rule and three example applications to bacterial growth

Dynamic energy budget (DEB) theory has been applied to model a wide range of organisms, including microbes. In the standard DEB model, biomass is partitioned into reserve and structural compartments, where reserve biomass is mobilized in a pseudolinear manner (while the reserve biomass density, defined as the ratio between reserve and structural biomass, decays linearly) to drive maintenance and the growth of structural biomass (and extracellular enzyme production if it is considered). However, the linear dynamics of the reserve biomass density makes the standard DEB model incapable of explaining the slowdown of microbial growth at high reserve density that is caused by macromolecular crowding effect which reduces biochemical reaction rates (a typical situation occurs when microbes are experiencing severe moisture stress) and is inconsistent with the observation that intracellular enzymatic reactions generally follow non-linear kinetics. By partitioning biomass into reserve, kinetic, and structural compartments, we show here that the Equilibrium Chemistry Approximation (ECA) kinetics can be used to represent enzymatically catalyzed reserve biomass mobilization that can then drive the kinetic and structural biomass synthesis. This revised DEB model better represents the tradeoff in ribosome allocation for structural growth and internal enzyme production, is structurally compatible with metabolic models of cell individuals, and includes the standard DEB model and the popular compromise model as special cases for representing population growth. We then applied the revised DEB model to interpret components of bacterial respiration, their dependence on substrate availability, and emergent microbial carbon use efficiency dynamics for an exponentially growing population. We found that the revised DEB model enables a better understanding of bacterial substrates use (carbon in our examples) than that can be derived from a few other models in the literature. In particular, the revised DEB model explains why carbon use efficiency may first increase, then plateau, and finally decrease with growth rate (and substrate uptake rate), as a function of proteomics. Additionally, the revised DEB model explains why the kinetic biomass compartment needs to be divided to reasonably incorporate proteomic control of microbial growth.

59 BASIC BIOLOGICAL SCIENCES↗
DOE OSTI2023

A 30% reduction in switchgrass rhizome reserves did not decrease biomass yield

Abstract A long‐standing question in perennial grass breeding and physiology is whether yield improvement strategies could compromise winter survival. Since perennial grasses rely on stored carbohydrates for winter maintenance and spring regrowth, yield improvement strategies could reduce winter survival if they increase biomass and grain yields at the expense of carbon allocation to storage. Therefore, it is crucial to comprehend the dependence of regrowth on storage reserves. We experimentally depleted switchgrass ( Panicum virgatum L.) rhizome reserves by storing rhizomes for 2 weeks at 5°C (control treatment) and 25°C (reserve‐depleted treatment). During the storage period rhizome respiration was 5.3× higher at 25°C (0.010 μmol CO 2 g −1 min −1 at 5°C vs. 0.054 μmol CO 2 g −1 min −1 at 25°C; p < 0.0001) and the starch content was depleted by 30% by the end of storage. Surprisingly, reserve‐depleted switchgrass had 60% larger leaf area (LA; LA control = 149 cm 2 pot −1 vs. LA depleted = 239 cm 2 pot −1 ; p = 0.013) and produced ~40% more aboveground biomass than control plants (9.46 g pot −1 vs. 6.63 g pot −1 ; p = 0.112). In addition, reserve‐depleted switchgrass restored its rhizome starch reserves to pre‐storage levels. Switchgrass showed a large plasticity among its source‐sink components to buffer the imposed reserve depletion. It increased plant photosynthesis by increasing the photosynthetic leaf area while keeping photosynthesis constant on a leaf area basis and readjusted the timing and activity of sink organs. These results suggest that switchgrass, and potentially other perennial grasses, largely over‐invest in storage reserves. Therefore, current breeding strategies in perennial grasses aimed to extend the aboveground growing season should not compromise crop persistence. Our study also has implications on long‐term yield dynamics as it highlights sink limitations as potential driver of the yield decline commonly observed in perennial grasses 5+ years after cultivation.

Tejera‐Nieves, Mauricio↗
DOE OSTI2022

Association of AK4 Protein From Stem Cell–Derived Neurons With Cognitive Reserve

Background and Objectives: Identifying protein targets that provide cognitive reserve is a strategy to prevent and treat Alzheimer disease and Alzheimer disease related dementias (AD/ADRD). Previous studies using bulk human brain tissue reported 12 proteins associated with cognitive reserve. This study examined whether the same proteins from induced neurons (iNs) are associated with cognitive reserve of their human donors. Methods: Here, induced pluripotent stem cell (iPSC) lines were generated from cryopreserved peripheral blood mononuclear cells of older adults who were autopsied as part of the Religious Orders Study or Rush Memory and Aging Project. Neurons were induced from iPSCs using a standard neurogenin2 protocol. Tandem mass tag proteomics analyses were conducted on iNs day 21. Cognitive reserve of their human donors was measured as person-specific slopes of cognitive change not accounted for by common neuropathologies. Results: The 53 human donors died at a mean age of 91 years, all were non-Latino White, and 36 (67.9%) were female. Eighteen were diagnosed with Alzheimer dementia proximate to death, and 34 had pathologic AD diagnosis at autopsy. Approximately 60% of the donors had above-average cognitive reserve such that their cognition declined slower than an average person with comparable burdens of neuropathologies. Eight of the 12 candidate proteins were quantified in iNs proteomics analyses. Higher adenylate kinase 4 (AK4) expression in iNs was associated with lower cognitive reserve, consistent with the previous report for brain AK4 expression. Discussion: By replicating cortical protein associations with cognitive reserve in human iNs, these data provide a valuable molecular readout for studying complex clinical phenotypes such as cognitive reserve in a dish.

59 BASIC BIOLOGICAL SCIENCES↗
DOE OSTI2022

Machine Learning Derived Dynamic Operating Reserve Requirements in High-Renewable Power Systems

Accurately forecasting wind and solar power output poses challenges for deeply decarbonized electricity systems. Grid operators must commit resources to provide reserves to ensure reliable operations in the face of forecast errors, a process which can increase fuel consumption and emissions. We apply neural network-based machine learning to expand the usefulness of median point forecast data by creating probabilistic distributions of short-term uncertainty in demand, wind, and solar forecasts that adapt to prevailing grid conditions. Machine learning derived estimates of forecast errors compare favorably to estimates based on incumbent methods. Reserves derived from machine learning are usually smaller than values derived using incumbent methods, which enables fuel savings during most hours. Machine learning reserves are generally larger than incumbent reserves during times of higher forecast error, potentially improving system reliability. Performance is tested using multi-stage production simulation modeling of the California Independent System Operator (CAISO) system. Machine learning reserves provide production cost and greenhouse gas (GHG) emission reductions of approximately 0.3% relative to historical 2019 requirements. Savings in the 2030 timeframe are highly dependent on battery storage capacity. At lower levels of battery capacity, savings of 0.4% from machine learning reserves are shown. Significant quantities of battery storage are expected to be added to meet California's resource adequacy needs and GHG reduction targets. Addition of these batteries saturate reserve needs and results in minimal within-hour balancing costs in 2030.

24 POWER TRANSMISSION AND DISTRIBUTION↗
DOE OSTI2022

Operating Dynamic Reserve Dimensioning Using Probabilistic Forecasts

The rapid integration of variable energy sources (VRES) into power grids increases variability and uncertainty of the net demand, making the power system operation challenging. Operating reserve is used by system operators to manage and hedge against such variability and uncertainty. Traditionally, reserve requirements are determined by rules-of-thumb (static reserve requirements, e.g., NERC Reliability Standards), and more recently, dynamic reserve requirements from tools and methods which are in the adoption process (e.g., DynADOR, DRD, and RESERVE, among others). While these methods/tools significantly improve the static rule-of-thumb approaches, they rely exclusively on deterministic data (i.e., best guess only). Consequently, these methods disregard the probabilistic uncertainty thresholds associated with specific days and their weather conditions (i.e., best guess plus probabilistic uncertainty). This work presents practical approaches to determine the operating reserve requirements leveraging the wealth information from probabilistic forecasts. Proposed approaches are validated and tested using actual data from the CAISO system. Furthermore, results show the benefits in terms of risk reduction of considering the probabilistic forecast information into the dimensioning process of operating reserve requirements.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗
DOE OSTI2022

Geothermal Reserve Pits: Considerations for Installation on BLM-Administered Lands

Reserve pits, also known as sumps, are a common aspect of geothermal drilling operations. This paper describes the Bureau of Land Management's regulatory authorities and key environmental considerations associated with geothermal reserve pits. Reserve pit design, the need for environmental compliance measures, and reclamation approaches will vary depending on site-specific conditions. Groundwater and wildlife impacts are the most common environmental considerations related to reserve pits. In some cases, regulations or groundwater or soil conditions necessitate the use of a synthetic liner. However, the chemical composition of most geothermal drilling fluids and muds, completion fluids, and produced fluids that are discharged to reserve pits does not warrant pit liners. The potential for hazardous fluids, high water temperatures, and entrapment are concerns for wildlife. Common wildlife impact avoidance and mitigation measures include fencing, netting, and escape ramps. The need for these measures depends on localized site and environmental conditions. There are requirements to reclaim reserve pits following geothermal drilling operations. Reserve pits often remain in place to accommodate multiple phases of drilling and well testing. They are eventually backfilled and decommissioned.

BLM↗
DOE OSTI2022

Allocating Reserves in Active Distribution Systems for Tertiary Frequency Regulation

This paper proposes a cooperative game theory-based approach for reserve optimization to enable distributed energy resources (DERs) participate in tertiary frequency regulation. Tertiary frequency regulation schemes ensure that reserve requirements of primary and secondary frequency regulation are fulfilled with a minimum cost. While the available reserve from a single distribution system may not suffice tertiary frequency regulation, stacked reserve from several distribution systems can enable them participate in tertiary frequency regulation at scale. In this paper, a two-stage strategy is proposed to effectively and precisely allocate spinning reserve requirement from each DER in distribution systems. In the first stage, two types of characteristic functions are computed: worthiness index (WI) and power loss reduction (PLR). In the second stage, the equivalent Shapley values are computed based on the characteristic functions, which are used to determine distribution factors for reserve allocation among DERs. The effectiveness of the proposed method for allocating reserves among DERs is demonstrated through several case studies on modified versions of the IEEE 13-node and 33-node distribution systems.

Gautam, Mukesh↗
DOE OSTI2024

An empirical analysis of supply offers in the ERCOT operating reserves markets

Here, this paper seeks to improve theoretical and empirical understanding of supplier dynamics in wholesale markets for operating reserves, which have been understudied compared to energy markets. We begin by identifying several economic factors that unit owners may consider when submitting offers into operating reserves auctions in two-stage, co-optimized markets common across much of North America. Next, we analyze historical offer data from the Electric Reliability Council of Texas (ERCOT) market to assess whether actual reserve market behavior aligns with expectations based on economic theory, as well as with commonly used assumptions in electricity market modeling efforts. We find that the aggregate supply of operating reserves in ERCOT varies meaningfully over time, becoming more expensive during summer afternoons, which is consistent with theoretical expectations but contradicts the typical modeling assumption of temporally invariant reserve offers. Analysis of offers made by individual units uncovers additional insights, such as the existence of large offer pattern differences by unit owner and the tendency of battery storage units to submit very low offer prices. We conclude by discussing how our findings can be integrated into electricity market modeling assumptions to improve alignment with observed operating reserve offer inputs and pricing outcomes.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗