Electricity Market-Clearing With Extreme Events
<|reference_start|>Electricity Market-Clearing With Extreme Events: Extreme events jeopardize power network operations, causing beyond-design failures and massive supply interruptions. Existing market designs fail to internalize and systematically assess the risk of extreme and rare events. With the increasing deployment of renewable generation, electric power systems become increasingly dependent on weather changes. Efficiently maintaining the reliability of renewable-dominant power systems during extreme weather events requires co-optimizing system resources, while differentiating between large/rare and small/frequent deviations from forecast conditions. To address this research and practice gap, we propose efficiently managing the uncertainties associated with extreme weather events through the integration of large deviation theory into chance constraints (LDT-CC). We integrate extreme event statistics into market-clearing, via including LDT-CC to model and price reserve to cope with extreme events, and use weighted chance constraints (WCC) to reduce solution conservatism. We prove that the proposed market design is capable of producing a competitive equilibrium. Numerical experiments on an illustrative system and a modified 8-zone ISO New England system demonstrate the usefulness of the proposed pricing mechanism.<|reference_end|>
@article{tapia2024electricity,
    title={Electricity Market-Clearing With Extreme Events},
    author={Tomas Tapia, Zhirui Liang, Charalambos Konstantinou, Yury Dvorkin},
    journal={arXiv preprint arXiv:2408.03409},
    year={2024},
    archivePrefix={arXiv},
    eprint={2408.03409},
    primaryClass={eess.SY cs.SY}
}