If you want the energy price to be independent of the reserves, then you cannot 
co-optimize energy and reserves. By co-optimizing, you link the energy and 
reserves, so the energy prices cannot be independent of the reserve costs, 
allocations and prices.

I suppose you could *define* the energy price in your market to be something 
else, independent of reserves, but this will not be a real price in the 
traditional sense, reflecting a sensitivity in the problem you are actually 
solving.

-- 
Ray Zimmerman
Senior Research Associate
419A Warren Hall, Cornell University, Ithaca, NY 14853
phone: (607) 255-9645




On Jul 5, 2012, at 6:13 PM, Santiago Chamba wrote:

> Prof Zimmerman, thanks for your response
> I am using runopf_w_res. I agree with you, but I want to decouple the energy 
> prices and reserve prices, because the reserve market is "pay as bid", i.e. 
> the reserve payment doesn't depend on the reserve prices, only depend on the 
> reserve cost. For this cause, the reserve prices must not be affected to 
> energy prices.
>  
> Therefore, I want to formed the energy price independently of the reserve 
> price.
>  
> Best regards
> Santiago,
>  
>  
>  
> De: [email protected] 
> [mailto:[email protected]] En nombre de Ray Zimmerman
> Enviado el: jueves, 05 de julio de 2012 15:40
> Para: MATPOWER discussion forum
> Asunto: Re: Energy price
>  
> I'm not sure I fully understand your question ... but, if you are using the 
> runopf_w_res function in MATPOWER, I believe the LAM_P column in the bus 
> matrix should give you the correct energy price. I'm not sure what you mean 
> by forming the energy price "independently of reserve prices". When 
> co-optimizing, by definition the allocation of energy and reserves (and 
> therefore energy prices) are interdependent. That is, the amount of required 
> reserves and the relative reserve costs will affect the energy dispatch and 
> the nodal marginal price of energy.
>  
> -- 
> Ray Zimmerman
> Senior Research Associate
> 419A Warren Hall, Cornell University, Ithaca, NY 14853
> phone: (607) 255-9645
> 
> 
> 
> 
>  
> On Jun 29, 2012, at 11:16 AM, Santiago Chamba wrote:
> 
> 
> Hello Matpower community,
>  
> I am working with joint optimization of the energy and reserve markets. The 
> energy market is based in marginal cost, and the reserve market is "pays as 
> bid". When I simulated a case with  scarcity generating power, the all 
> capacity of power units are dispatched for energy and reserves. In this case, 
> the nodal price  reflect of multipliers of the power unit capacity 
> constraints, i.e. the price is modified with regard to the reserves 
> constraints.
> How can I formed the energy price independently of reserves price.   ?
>  
> Best regards,
>  
> Santiago
>  

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