A proposed hedge-based energy market model to manage renewable intermittency

• DOI: 10.1016/j.renene.2023.03.017
• Publication Date: 2023-03-06T02:54:43Z
• Authors: Chris Johnathon; Ashish Prakash Ag...; Chayne Planiden; Joel Kennedy
• Keywords: Hedge; Intermittency; Energy market; Demand Response

Renewable energy power producers are exposed to significant volatility in revenue due intermittency associated with wind and solar energy. Moreover, higher penetration of variable renewable the electric grids is significantly increasing cost procuring reserves, resulting electricity costs consumers. Hence, a market that can appropriately distribute reserves whilst ensuring stability for crucial. In this work, authors propose novel hedge-based model allows generators secure hedge contracts from flexible generating technologies as insurance against weather-driven deficits. The proposed supplements representative day-ahead maximizes participants diminishing investment signals green projects. A mathematical formulated determine equilibrium based on Karush Kuhn Tucker (KKT) optimality conditions. Simulation studies carried out demonstrate efficacy test network using MATLAB. theoretical results verified by simulation provide feasible region which mutually acceptable result overall revenues. show be deployed manage address risk management needs producers.