@inproceedings{51a057b0dacd416e9131e025ed36590b,
title = "Packaging energy and reserves bids through risk penalties for enhanced reliability in co-optimized markets",
abstract = "With increasing proportion of windpower, an important concern is that of maintaining the reliability of the electric grid in the face of higher supply-side volatility. In this paper, we examine the role of risk-based penalties in developing alternate designs in which firms combine energy bids associated with uncertain real-time availability with stable reserves bids. Such a study is carried out in a regime where firms have access to a day-ahead market, an uncertain real-time energy market and a reserves market. The resulting game-theoretic problem is a two-period stochastic Nash game with risk-based objectives and the associated equilibrium conditions are given by a complementarity problem. Preliminary numerical results on a 6-firm problem provide insights regarding the impact of reserves prices and risk penalties on wind-based generation, particularly in the face of high variability.",
author = "Michael Roytman and Shanbhag, {Uday V.} and Cardell, {Judith B.} and Anderson, {C. Lindsay}",
year = "2012",
doi = "10.1109/HICSS.2012.463",
language = "English (US)",
isbn = "9780769545257",
series = "Proceedings of the Annual Hawaii International Conference on System Sciences",
publisher = "IEEE Computer Society",
pages = "1915--1922",
booktitle = "Proceedings of the 45th Annual Hawaii International Conference on System Sciences, HICSS-45",
address = "United States",
note = "2012 45th Hawaii International Conference on System Sciences, HICSS 2012 ; Conference date: 04-01-2012 Through 07-01-2012",
}