Integration of Contracted Renewable Energy and Spot Market Supply to Serve Flexible Loads

We present a contract for integrating renewable energy supply and electricity spot markets for serving deferrable electric loads in order to mitigate renewable energy intermittency. The contract which we describe results in a stochastic optimal control problem for minimizing the cost of serving flexible load. We solve the optimal control problem by using a recombinant lattice for modeling renewable power supply and electricity spot price uncertainty. We compare various control policies, and we analyze the sensitivity of our results with respect to various problem parameters.