Financial opportunities for LSE under scarcity price environment

Zhaohao Ding, Piampoom Sarikprueck, Lyndon Lee, Wei Jen Lee, Jie Shi, Heng Lu

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

1 Scopus citations

Abstract

To compensate for 'missing money', the Electric Reliability Council of Texas (ERCOT) has continued to increase the offer price cap since the nodal market opened in 2010. This provides financial opportunities for Load Serving Entities (LSE) to deploy demand response. This paper proposes a quasi-real time incentive based demand response (IBDR) scheme for LSE to take advantage of scarcity prices. Combined with the scheme is a hybrid spike price forecasting model also presented by this paper. Numerical case studies are conducted based on the realistic ERCOT load zone price data. The results illustrate the financial benefits achieved by this proposed IBDR scheme.

Original languageEnglish
Title of host publication2014 North American Power Symposium, NAPS 2014
PublisherInstitute of Electrical and Electronics Engineers Inc.
ISBN (Electronic)9781479959044
DOIs
StatePublished - Nov 21 2014
Event2014 North American Power Symposium, NAPS 2014 - Pullman, United States
Duration: Sep 7 2014Sep 9 2014

Publication series

Name2014 North American Power Symposium, NAPS 2014

Conference

Conference2014 North American Power Symposium, NAPS 2014
Country/TerritoryUnited States
CityPullman
Period09/7/1409/9/14

Keywords

  • demand response
  • load serving entity
  • mixed integer quadratic programming
  • price forecasting
  • scarcity price

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