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Publication type: Article in scientific journal
Type of review: Peer review (publication)
Title: Economically efficient design of market for system services under the web-of-cells architecture
Authors: Bobinaite, Viktorija
Obusevs, Artjoms
Oleinikova, Irina
Morch, Andrei
DOI: 10.21256/zhaw-4049
Published in: Energies
Volume(Issue): 11
Issue: 4
Page(s): 729
Issue Date: Mar-2018
Publisher / Ed. Institution: MDPI
ISSN: 1996-1073
Language: English
Subjects: Market design; Market design elements; Web-of-Cells; Procurement scheme; Remuneration scheme; Pricing scheme; Cascading procurement
Subject (DDC): 333.79: Energy
Abstract: Significant power sector developments beyond 2020 will require changing our approach towards electricity balancing paradigms and architectures. Presently, new electricity balancing concepts are being developed. Implementation of these in practice will depend on their timeliness, consistency and adaptability to the market. With the purpose of tailoring the concepts to practice, the development of a balancing market is of crucial importance. This article deals with this issue. It aims at developing of a high-level economically efficient market design for the procurement of system balancing products within the Web-of-Cells architecture. Literature and comparative analysis methods are applied to implement the aim. The analysis results show that a more efficient balancing capacity allocation process should be carried out in a competitive way with closer allocation time to real-time, especially with increased penetration of renewable energy sources. Bid time units, the timing of the market, procurement and remuneration schemes as well pricing mechanisms are the most decisive elements of the market. Their respective advantages and disadvantages are analyzed in the article, as well as their analysis is done against the selected assessment criteria. The results of the analysis show that seeking to improve the operational efficiency of the market, the sequential approach to the market organization should be selected and short-term market time units should be chosen. It is expected that price efficiency could be improved by establishing an organized market where standardized system balancing products should be traded. The balance service providers, who own capital expenditures (CAPEX) sensitive production units, should be remunerated both for the availability of balancing capacities and for their utilization. Uniform pricing rule and cascading procurement principal should be applied to improve the utilization efficiency.
Fulltext version: Published version
License (according to publishing contract): CC BY 4.0: Attribution 4.0 International
Departement: School of Engineering
Organisational Unit: Institute of Energy Systems and Fluid Engineering (IEFE)
Appears in collections:Publikationen School of Engineering

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