Valuation of Distributed Wind Turbines Providing Multiple Market Services

The role of wind turbines has traditionally been limited to providing energy capacity to the grid, but the availability of smart inverters and recent regulatory changes provide the technical and policy capability for wind turbines to also provide ancillary services. However, in contrast to the techn...

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Bibliographic Details
Main Authors: Bhatti, Bilal Ahmad, Reiman, Andrew P., Boff, Daniel S., Barrows, Sarah E., Orrell, Alice C.
Format: Conference Proceeding
Language:English
Subjects:
Distributed energy resources
optimization methods
power markets
Regulation
Reliability
Sensitivity analysis
Smart grids
Spinning
valuation
Wind speed
Wind turbines
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Summary:The role of wind turbines has traditionally been limited to providing energy capacity to the grid, but the availability of smart inverters and recent regulatory changes provide the technical and policy capability for wind turbines to also provide ancillary services. However, in contrast to the technical and policy aspects, the valuation of distributed wind turbines providing such services has not been thoroughly studied. This paper presents an optimal market-participation method for distributed wind turbines and valuates different strategies in California Independent System Operator's balancing area. The services include energy capacity, regulation up and down, and reserves. An optimization problem is formulated to determine optimal power output for each service and demonstrated using historical data for one complete year. The revenues from multiple services are quantified, and a sensitivity analysis is performed to relate market prices with revenues. It is found that the optimal strategy generates 6% more revenue compared to the revenue from participating in the energy market only. Also, the reduced energy prices in future scenarios increase the relative importance of market participation in ancillary services.
ISSN:2472-8152
DOI:10.1109/ISGT51731.2023.10066377