Thesis
Energy Market Participation Strategies with Price and Demand Uncertainty for Microgrids with Excess Generation and Energy Storage
Washington State University
Master of Science (MS), Washington State University
2023
DOI:
https://doi.org/10.7273/000005354
Abstract
Until recent years, competitive energy markets were reserved for utilities and large-scale power plants, leaving smaller resources with minimal avenues for participation. As technology advances, the energy markets are evolving to accommodate these new, small-scale participants. With the global push for more clean energy options, microgrids are quickly becoming key players in wholesale energy markets. However, they currently lack an effective strategy to predict future bids while still optimizing their own dispatch.This thesis proposes a method to forecast market closing prices to inform bidding decisions within a microgrid’s existing control strategy. Through statistical analysis of the forecasting accuracy, it was found that there exists an ideal ratio in the bid distribution between scheduled and instantaneous markets. Systems with more accurate forecasting capabilities fare better from a binary decision between these two market types, while systems with less certain forecasting methods have similar success through a mix of the two.
The benefit of effective bidding strategies can be measured through the overall decrease in operation costs as well as the stability that results from having constant communication with the larger energy grid. In addition to the advantages seen by the individual microgrid operator, improving the way that small-scale participants can interact with energy markets encourages similar resource types to join and thus increases the stability of the grid as a whole. What’s more, the methodology established in this project provides a baseline for future sensitivity studies to investigate its broader applications beyond this test case.
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Details
- Title
- Energy Market Participation Strategies with Price and Demand Uncertainty for Microgrids with Excess Generation and Energy Storage
- Creators
- Haley Shea Mikeska
- Contributors
- Dustin McLarty (Advisor)John P Swensen (Committee Member)Soumik Banerjee (Committee Member)
- Awarding Institution
- Washington State University
- Academic Unit
- Mechanical and Materials Engineering, School of
- Theses and Dissertations
- Master of Science (MS), Washington State University
- Publisher
- Washington State University
- Number of pages
- 105
- Identifiers
- 99901031140401842
- Language
- English
- Resource Type
- Thesis