Economic impact of forecasting errors in residual reserve curves in the day-ahead scheduling of pumped storage plants

M. Chazarra, J.I. Pérez-Díaz, J. García-González, A. Helseth

12th IEEE PowerTech Conference - PowerTech 2017, Manchester (United Kingdom). 18-22 junio 2017

Summary:

The economic impact of forecasting errors in the residual demand curves of the secondary regulation reserve market is analysed in the context of the operation of a closed-loop and daily-cycle pumped-storage hydropower plant. The plant participates in the day-ahead energy market as a price-taker and in the secondary regulation reserve market as a price-maker. The secondary regulation energy due to the real-time use of the committed reserves is also considered in the optimization model. The results show that profit is significantly more sensitive to forecast errors in the day-ahead energy market prices than in the residual demand curves of the secondary regulation reserve market.

Keywords: Pumped-Storage Plant, Secondary Regulation Service, Residual Reserve Curve Forecasting, Value of PerfectInformation.

DOI: 10.1109/PTC.2017.7980795

Publication date: June 2017.

Citation:
Chazarra, M., Pérez-Díaz, J.I., García-González, J., Helseth, A., Economic impact of forecasting errors in residual reserve curves in the day-ahead scheduling of pumped storage plants, 12th IEEE PowerTech Conference - PowerTech 2017, Manchester (United Kingdom). 18-22 June 2017.

IIT-17-126A