Market based procurement of energy and ancillary services from Renewable Energy Sources in deregulated environment

An increasing utilization of Renewable Energy Sources (RES) in electricity generation increases the need of Ancillary Services (AS) in power system. This paper proposes a market based approach for participation of Renewable Power Producers (RPP) to clear both energy and AS in day-ahead market under disaggregated framework. This approach is based on sequential clearing of Energy Market (EM) and Ancillary Service Market (ASM) such that the cost of procuring these services is minimized and feasible solution is obtained. This optimization problem is formulated and solved using Optimal Power Flow (OPF) technique which considers all transmission constraints and power flow limits. The AS considered in the present work is limited to Reserves Market (RM) such as Ten Minute Spinning Reserve (TMSR) and Thirty Minute Replacement Reserves (TMRR) only. The ability of RPPs like Wind Power Plant (WPP) and Photo-Voltaic Plant (PVP) with conventional power producers to provide both energy and AS has been demonstrated by considering a modified 7 unit test system. (C) 2016 Elsevier Ltd. All rights reserved.