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A New Swing-Contract Design for Wholesale Power Markets
Specialization Codes: 11 - Energy and the Economy, 12 - Energy Access, 13.7 - Regional Analysis (North America), 14.1 - Public and Private Risks, Risk Management, 15.1 - Energy Data, Modeling, and Policy Analysis, 6.7 - Markets and Prices, 7 - Renewables, 8 - Energy and the Environment, 9 - Energy Efficiency,
Authors: Leigh Tesfatsion
Publication Date: c. 2021, John Wiley & Sons, Inc. (IEEE Press Series on Power Engineering)
Description: "A New Swing-Contract Design for Wholesale Power Markets," by Leigh Tesfatsion, proposes a linked swing-contract market design for centrally-managed wholesale power markets to facilitate increased reliance on renewable energy and demand-side participation. The proposed swing contracts are firm or option two-part pricing contracts permitting resources to offer the future availability of dispatchable power paths (reserve) with broad types of flexibility in their power attributes. The first three chapters cover: goals for wholesale power market design; history, operations, and conceptual concerns for current U.S. RTO/ISO-managed wholesale power markets; and related literature review. The next eight chapters cover: a general swing-contract formulation for centrally-managed wholesale power markets; illustrative swing-contract reserve offers; inclusion of reserve offers with price swing; inclusion of price-sensitive reserve bids; and extension to a linked collection of swing-contract markets. Operations in current U.S. RTO/ISO-managed markets are reviewed in the following four chapters, and conceptual and practical advantages of the linked swing-contract market design are carefully considered. The concluding four chapters consider how current markets might gradually transition to a swing-contract market design, and how swing contracts could be used to facilitate FERC Order 2222 (September 2020) calling for participation of grid-edge resource aggregators in wholesale power markets.
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