Market implications of wind reserve margin

Mojgan Hedayati-Mehdiabadi, Pranavamoorthy Balasubramanian, Kory Hedman, Junshan Zhang

Research output: Contribution to journalArticlepeer-review

14 Scopus citations


The level of uncertainty, which the power system operators should account for, increases as more renewables are integrated in the system. Additional operating reserves needs to be scheduled within security constrained economic dispatch to ensure reliability. Existing practices rely on conventional generators for providing operational flexibility required to mitigate the uncertainty introduced by renewables. However, with the increased share of renewables in the generation mix, such intermittent resources would be expected to take part in the balancing tasks, too. Providing a reserve margin allows wind generators to hedge against uncertainty. This paper examines the market implications of wind reserve margin policies used to mitigate uncertainty from wind resources. The market implications of the recently proposed optimized reserve margin policy factors are studied. Analysis on the Reliability Test System 1996 shows that reserve margin policy factors along with the proposed compensation scheme help in allocating payments toward renewable resources that present a good quality of service.

Original languageEnglish (US)
Article number8320862
Pages (from-to)5161-5170
Number of pages10
JournalIEEE Transactions on Power Systems
Issue number5
StatePublished - Sep 2018


  • Electric energy markets
  • flexibility
  • power generation dispatch
  • power system economic assessment
  • power system reliability
  • quality of reserve
  • quality of service
  • renewable energy
  • reserve payments
  • reserve policy
  • reserve requirements
  • reserve scheduling
  • spinning reserve
  • stochastic optimization
  • stochastic reserve
  • uncertainty modeling
  • wind generation integration

ASJC Scopus subject areas

  • Energy Engineering and Power Technology
  • Electrical and Electronic Engineering


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