Reserve prices under scarcity conditions improve with a dynamic ORDC, new research finds

Historically, most electric transmission system operators have used heuristics (rules based on experience) to hold sufficient reserves to guard against unforeseen large outages and maintain system reliability. However, the expansion of competitive wholesale electricity markets has led to efforts to translate reserve heuristics into competitively procured services. A common approach constructs an administrative demand curve for valuing and procuring least cost reserve supply offers. The technical term for this is the operating reserve demand curve (ORDC). A new paper quantifies how better accounting for the temperature-dependent probability of large generator contingencies with time-varying dynamic ORDC construction improves reserve procurement.

from Energy & Green Tech News - Energy Sciences News, Green Tech, Energy, Energy Science https://ift.tt/3u7or1F

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