Integrating wind and solar power into the grid requires dispatching various types of reserve generation to compensate for the randomness of renewable power. The dispatch is usually determined by a system operator (SO) or an aggregator who `firms' variable energy by bundling it with conventional power. The optimal dispatch is formulated as the solution to a stochastic control problem and shown to have a closed form that can be quickly computed. Different objectives and risk constraints can be included in the formulation and trade-offs can be evaluated. In particular one can quantify the influence of sequential forecasts on the total integration cost and the choice of dispatched generation. When the forecast error is Gaussian, the optimal dispatch policy can be precomputed.

10aCERTS10areliability and markets10areserve generation10arisk-limiting dispatch10aRM11-00610awind power1 aRajagopal, Ram1 aBitar, Eilyan1 aWu, Felix1 aVaraiya, Pravin uhttps://certs.lbl.gov/publications/risk-limiting-dispatch-wind-power01409nas a2200265 4500008003900000020002200039245002400061210002400085260003300109300001600142520068700158653001000845653002400855653001600879653002800895653002700923653001300950100001800963700002200981700002801003700001901031700002001050700001401070856005901084 2012 d a978-1-4577-1925-700aSelling Random Wind0 aSelling Random Wind aMaui, HI, USAbIEEEc01/2012 a1931 - 19373 aWind power is inherently random, but we are used to 100 percent reliable or 'firm' electricity, so reserves are used to convert random wind power into firm electricity. The cost of these reserves is frequently a hidden subsidy to wind power producers. We propose an alternative: package random wind power into electricity with different levels of reliability and sell them at different prices. This variable-reliability market is more efficient than the current firm-electricity market, and may require lower subsidy. However, we have to think of electricity differently. We also explore interesting differences between the variable-reliability and related real-time markets.

10aCERTS10aelectricity markets10areliability10areliability and markets10arenewables integration10aRM11-0061 aBitar, Eilyan1 aPoolla, Kameshwar1 aKhargonekar, Pramod, P.1 aRajagopal, Ram1 aVaraiya, Pravin1 aWu, Felix uhttps://certs.lbl.gov/publications/selling-random-wind