This research project is exploring a proposed change in market design (and a corresponding business model) aimed at mobilizing the available flexibility of certain loads through proper incentives, and an aggregation scheme which will provide flexible resources to mitigate the uncertainty of variable energy resources (VERs)—allowing VERs to internalize the cost of uncertainty by contracting with responsive load (DR).
This project was designed to address several emerging issues for the Western US and the context of the WECC: (1) Will multiple concurrent market-based policies necessarily benefit renewable producers at the expense of consumers and coal-based producers? (2) What is the relationship among prices of electric energy, emissions permits, and renewable energy credits (RECs)? (3) Will multiple concurrent market-based policies grant a greater magnitude of incentive for companies to manipulate markets in their favor (i.e., market power)?
This project was designed to explore the potential saving in economic dispatch cost from simultaneous economic dispatch of generation resources and switching off lines in a smart grid environment.