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Incentivizing Flexibility in System Operations

  • Erik Ela
  • Michael Milligan
  • Aaron Bloom
  • Audun Botterud
  • Aaron Townsend
  • Todd Levin
Chapter
Part of the Studies in Systems, Decision and Control book series (SSDC, volume 144)

Abstract

Defining flexibility has been a challenge that a number of industry members and researchers have attempted to address in recent years. With increased variability and uncertainty of variable generation (VG), the resources on the system will have to be more flexible to adjust output, so that power output ranges, power ramp rates, and energy duration sustainability are sufficient to meet the needs of balancing supply with demand at various operational timescales. This chapter discusses whether existing market designs provide adequate incentives for resources to offer their flexibility into the market to meet the increased levels of variability and uncertainty introduced by VG in the short-term operational time frame. It presents a definition of flexibility and discusses how increased levels of VG require increased needs for flexibility on power systems. Following this introductory material, the chapter examines how existing market designs ensure that resources have the right incentives to provide increased flexibility, and then discusses a number of emerging market design elements that impact flexibility incentives.

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Copyright information

© Springer International Publishing AG 2018

Authors and Affiliations

  • Erik Ela
    • 1
  • Michael Milligan
    • 2
  • Aaron Bloom
    • 2
  • Audun Botterud
    • 3
  • Aaron Townsend
    • 2
  • Todd Levin
    • 3
  1. 1.Electric Power Research InstitutePalo AltoUSA
  2. 2.National Renewable Energy LaboratoryGoldenUSA
  3. 3.Argonne National LaboratoryArgonneUSA

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