The Effects of Spinning Reserve Uncertainty and Demand Response Programs on Transmission-Constrained Bidding Strategy

Document Type : Research Article


1 Isfahan University of Technology

2 Amirkabir University of Technology

3 Islamic Azad University


In electricity market, generation company attempts to maximize their profit in bidding strategy approach. As the transactions of power and spinning reserve are done in a transmission network, consideration of transmission constraints and spinning reserve uncertainties become necessary. In bidding strategy problem, there are various demand uncertainties. Usually, electricity markets consider a fixed spinning reserve with fixed request probability to sure that demand is met. However, actual spinning reserve is stochastic in quantity and request hours that should be modelled and simulated. Another demand uncertainty is demand response programs include various stochastic types. One of the most famous demand response programs is electric vehicles parking with stochastic charging/discharging amount and hours. The objection of this study is solving bidding strategy problem considering transmission constraints, spinning reserve uncertainty, and electric vehicles parking as demand response program based on a heuristic approach. An actual spinning reserve model using normal distribution is proposed and three case studies are presented. In the first case, improvement in profit of generation company by 4.15-47.95% and 20.84-31.30% under single and double-sided auctions are reached, respectively. Where transmission constraints and spinning reserve uncertainty are considered, optimal bidding strategy problem is solved in energy and spinning reserve market for three generation companies in IEEE 6-bus network where transmission constraints are satisfied at all scenarios of spinning reserve requests. When electric vehicles parking is considered, it is shown that demand response programs have direct effects of bidding parameters such as market clearing price, generation companies power awarded and profits.


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