This thesis consists of 7 chapters and 3 appendices.
Chapter 2 provides relevant context on power systems and power system operation, and an overview of the literature on the challenges with and the desirable outcomes of designing operational practices in electricity markets with growing penetrations of VRE.
-Chapter 3 outlines the motivating research question, the research objectives and research methods of this thesis in detail
-Chapter 4 first provides an overview of typical frequency control arrangements, with a focus on restructured electricity industries in North America and Europe, and the main challenges faced in their design. I then describe the NEM, its frequency control arrangements and the specific challenges posed by increasing penetrations of VRE. Based on an analysis of the performance of the NEM’s frequency control arrangements in responding to these challenges, I conclude by offering four key insights to policy-makers.
-Chapter 5 provides an overview of how balancing flexibility is enabled and procured in the NEM before describing a methodology to quantify available reserves and footroom across deployment horizons for various resource types. In a case study, I then quantify the available reserves and footroom in two regions of the NEM for existing resource mixes in 2020 and potential resources mixes in 2025, with two scenarios for the latter. From the findings of this case study, I explore the role of reserve products in securing balancing flexibility. Appendix 8 outlines the sources for key input data and assumptions, and provides further details regarding how these data were used in the analysis.
-Chapter 6 is the information and storage paper. Appendix 8 outlines the assumptions for the modelling in Chapter 5. Appendix 9 presents the mixed-integer linear program formulations used in the storage modelling in Chapter 6, and Appendix 10 describes the methodology used to model a storage scheduler discounting price forecasts (one of the formulations used in the storage modelling in Chapter 6 and described in Appendix 9).
+Chapter 3 outlines the motivating research question, the research objectives and research methods of this thesis in detail.
+Chapter 4 considers the question of how frequency control arrangements should be designed with growing penetrations of VRE. In this chapter, I first provide an overview of typical frequency control arrangements, with a focus on restructured electricity industries in North America and Europe, and the main challenges faced in their design. I then describe the NEM’s frequency control arrangements and the specific challenges posed by increasing penetrations of VRE. Based on an analysis of the performance of the NEM’s frequency control arrangements in responding to these challenges, I conclude this chapter by offering four key insights to policy-makers.
+Chapter 5 focuses on understanding balancing flexibility capabilities available in scheduling timeframes as VRE and storage become a larger part of system resource mixes. In this chapter, I first provide an overview of how balancing flexibility is enabled and procured in the NEM before describing a methodology to quantify available reserves and footroom across deployment horizons for various resource types. I then quantify the available reserves and footroom in two regions of the NEM for existing resource mixes in 2020 and potential resources mixes in 2025, with two scenarios for the latter. From the findings of this case study, I explore the role of reserve products in securing balancing flexibility. Appendix 8 outlines the sources for key input data and assumptions, and provides further details regarding how these data were used in the analysis.
+Chapter 6 explores how future pricing information and market participant operational strategies affect the deployability of balancing flexibility from energy storage resources. In this chapter, I first summarise market information, participation and clearing processes in the NEM in addition to providing context on grid-scale energy storage resource deployment, operation and market participation to date. Then, in a case study of the NEM, I examine errors in the NEM’s centralised price forecasts, propose a hypothesis to explain increasing divergence and the occurrence of price swings in these forecasts, and then use the same centralised price forecasts to schedule a variety of battery energy storage systems for wholesale energy market arbitrage to assess the impact of imperfect foresight on arbitrage revenues. I conclude by discussing changes to market participant scheduling and market design that could maximise the balancing value of resources such as battery energy storage systems. Appendix 9 presents the mixed-integer linear program formulations used in the storage modelling in Chapter 6, and Appendix 10 describes the methodology used to model a storage scheduler discounting price forecasts (one of the formulations used in the storage modelling in Chapter 6 and described in Appendix 9).
+Finally, Chapter 7 concludes the thesis. In this chapter, I summarise the contributions of this thesis and highlight avenues for further work.
In this chapter, I provide relevant context and a brief overview of the literature that tackles the challenge of designing operational practices in electricity markets with growing penetrations of variable renewable energy (VRE).
diff --git a/output/thesis.docx b/output/thesis.docx index 124b38f..e61001b 100644 Binary files a/output/thesis.docx and b/output/thesis.docx differ diff --git a/output/thesis.pdf b/output/thesis.pdf index 3cb580d..95ef4da 100644 Binary files a/output/thesis.pdf and b/output/thesis.pdf differ diff --git a/output/thesis.tex b/output/thesis.tex index 9e4ff3f..21f44eb 100644 --- a/output/thesis.tex +++ b/output/thesis.tex @@ -797,39 +797,60 @@ \section{Structure of the thesis}\label{structure-of-the-thesis}} \textbf{Chapter \ref{sec:research_framework}} outlines the motivating research question, the research objectives and research methods of this -thesis in detail +thesis in detail. -\textbf{Chapter \ref{sec:fcs}} first provides an overview of typical -frequency control arrangements, with a focus on restructured electricity +\textbf{Chapter \ref{sec:fcs}} considers the question of how frequency +control arrangements should be designed with growing penetrations of +VRE. In this chapter, I first provide an overview of typical frequency +control arrangements, with a focus on restructured electricity industries in North America and Europe, and the main challenges faced in -their design. I then describe the NEM, its frequency control -arrangements and the specific challenges posed by increasing -penetrations of VRE. Based on an analysis of the performance of the -NEM's frequency control arrangements in responding to these challenges, -I conclude by offering four key insights to policy-makers. - -\textbf{Chapter \ref{sec:reserves}} provides an overview of how -balancing flexibility is enabled and procured in the NEM before -describing a methodology to quantify available reserves and footroom -across deployment horizons for various resource types. In a case study, -I then quantify the available reserves and footroom in two regions of -the NEM for existing resource mixes in 2020 and potential resources -mixes in 2025, with two scenarios for the latter. From the findings of -this case study, I explore the role of reserve products in securing -balancing flexibility. \textbf{Appendix +their design. I then describe the NEM's frequency control arrangements +and the specific challenges posed by increasing penetrations of VRE. +Based on an analysis of the performance of the NEM's frequency control +arrangements in responding to these challenges, I conclude this chapter +by offering four key insights to policy-makers. + +\textbf{Chapter \ref{sec:reserves}} focuses on understanding balancing +flexibility \emph{capabilities} available in scheduling timeframes as +VRE and storage become a larger part of system resource mixes. In this +chapter, I first provide an overview of how balancing flexibility is +enabled and procured in the NEM before describing a methodology to +quantify available reserves and footroom across deployment horizons for +various resource types. I then quantify the available reserves and +footroom in two regions of the NEM for existing resource mixes in 2020 +and potential resources mixes in 2025, with two scenarios for the +latter. From the findings of this case study, I explore the role of +reserve products in securing balancing flexibility. \textbf{Appendix \ref{sec:appendix-reserves_assumptions}} outlines the sources for key input data and assumptions, and provides further details regarding how these data were used in the analysis. -Chapter \ref{sec:info} is the information and storage paper. Appendix -\ref{sec:appendix-reserves_assumptions} outlines the assumptions for the -modelling in Chapter \ref{sec:reserves}. Appendix -\ref{sec:appendix-milps} presents the mixed-integer linear program -formulations used in the storage modelling in Chapter \ref{sec:info}, -and Appendix \ref{sec:appendix-discounting} describes the methodology -used to model a storage scheduler discounting price forecasts (one of -the formulations used in the storage modelling in Chapter \ref{sec:info} -and described in Appendix \ref{sec:appendix-milps}). +\textbf{Chapter \ref{sec:info}} explores how future pricing information +and market participant operational strategies affect the +\emph{deployability} of balancing flexibility from energy storage +resources. In this chapter, I first summarise market information, +participation and clearing processes in the NEM in addition to providing +context on grid-scale energy storage resource deployment, operation and +market participation to date. Then, in a case study of the NEM, I +examine errors in the NEM's centralised price forecasts, propose a +hypothesis to explain increasing divergence and the occurrence of price +swings in these forecasts, and then use the same centralised price +forecasts to schedule a variety of battery energy storage systems for +wholesale energy market arbitrage to assess the impact of imperfect +foresight on arbitrage revenues. I conclude by discussing changes to +market participant scheduling and market design that could maximise the +balancing value of resources such as battery energy storage systems. +\textbf{Appendix \ref{sec:appendix-milps}} presents the mixed-integer +linear program formulations used in the storage modelling in Chapter +\ref{sec:info}, and \textbf{Appendix \ref{sec:appendix-discounting}} +describes the methodology used to model a storage scheduler discounting +price forecasts (one of the formulations used in the storage modelling +in Chapter \ref{sec:info} and described in Appendix +\ref{sec:appendix-milps}). + +Finally, \textbf{Chapter \ref{sec:conclusion}} concludes the thesis. In +this chapter, I summarise the contributions of this thesis and highlight +avenues for further work. \hypertarget{sec:lit_review}{% \chapter{Context and literature review}\label{sec:lit_review}} diff --git a/source/09_intro.md b/source/09_intro.md index e1a16f5..10cd06c 100644 --- a/source/09_intro.md +++ b/source/09_intro.md @@ -59,15 +59,13 @@ This thesis consists of 7 chapters and 3 appendices. **[Chapter @sec:lit_review]** provides relevant context on power systems and power system operation, and an overview of the literature on the challenges with and the desirable outcomes of designing operational practices in electricity markets with growing penetrations of VRE. -**[Chapter @sec:research_framework]** outlines the motivating research question, the research objectives and research methods of this thesis in detail +**[Chapter @sec:research_framework]** outlines the motivating research question, the research objectives and research methods of this thesis in detail. -**[Chapter @sec:fcs]** first provides an overview of typical frequency control arrangements, with a focus on restructured electricity industries in North America and Europe, and the main challenges faced in their design. I then describe the NEM, its frequency control arrangements and the specific challenges posed by increasing penetrations of VRE. Based on an analysis of the performance of the NEM's frequency control arrangements in responding to these challenges, I conclude by offering four key insights to policy-makers. - -**[Chapter @sec:reserves]** provides an overview of how balancing flexibility is enabled and procured in the NEM before describing a methodology to quantify available reserves and footroom across deployment horizons for various resource types. In a case study, I then quantify the available reserves and footroom in two regions of the NEM for existing resource mixes in 2020 and potential resources mixes in 2025, with two scenarios for the latter. From the findings of this case study, I explore the role of reserve products in securing balancing flexibility. **[Appendix @sec:appendix-reserves_assumptions]** outlines the sources for key input data and assumptions, and provides further details regarding how these data were used in the analysis. +**[Chapter @sec:fcs]** considers the question of how frequency control arrangements should be designed with growing penetrations of VRE. In this chapter, I first provide an overview of typical frequency control arrangements, with a focus on restructured electricity industries in North America and Europe, and the main challenges faced in their design. I then describe the NEM's frequency control arrangements and the specific challenges posed by increasing penetrations of VRE. Based on an analysis of the performance of the NEM's frequency control arrangements in responding to these challenges, I conclude this chapter by offering four key insights to policy-makers. +**[Chapter @sec:reserves]** focuses on understanding balancing flexibility *capabilities* available in scheduling timeframes as VRE and storage become a larger part of system resource mixes. In this chapter, I first provide an overview of how balancing flexibility is enabled and procured in the NEM before describing a methodology to quantify available reserves and footroom across deployment horizons for various resource types. I then quantify the available reserves and footroom in two regions of the NEM for existing resource mixes in 2020 and potential resources mixes in 2025, with two scenarios for the latter. From the findings of this case study, I explore the role of reserve products in securing balancing flexibility. **[Appendix @sec:appendix-reserves_assumptions]** outlines the sources for key input data and assumptions, and provides further details regarding how these data were used in the analysis. +**[Chapter @sec:info]** explores how future pricing information and market participant operational strategies affect the *deployability* of balancing flexibility from energy storage resources. In this chapter, I first summarise market information, participation and clearing processes in the NEM in addition to providing context on grid-scale energy storage resource deployment, operation and market participation to date. Then, in a case study of the NEM, I examine errors in the NEM's centralised price forecasts, propose a hypothesis to explain increasing divergence and the occurrence of price swings in these forecasts, and then use the same centralised price forecasts to schedule a variety of battery energy storage systems for wholesale energy market arbitrage to assess the impact of imperfect foresight on arbitrage revenues. I conclude by discussing changes to market participant scheduling and market design that could maximise the balancing value of resources such as battery energy storage systems. **[Appendix @sec:appendix-milps]** presents the mixed-integer linear program formulations used in the storage modelling in [Chapter @sec:info], and **[Appendix @sec:appendix-discounting]** describes the methodology used to model a storage scheduler discounting price forecasts (one of the formulations used in the storage modelling in [Chapter @sec:info] and described in [Appendix @sec:appendix-milps]). - -[Chapter @sec:info] is the information and storage paper. [Appendix @sec:appendix-reserves_assumptions] outlines the assumptions for the modelling in [Chapter @sec:reserves]. [Appendix @sec:appendix-milps] presents the mixed-integer linear program formulations used in the storage modelling in [Chapter @sec:info], and [Appendix @sec:appendix-discounting] describes the methodology used to model a storage scheduler discounting price forecasts (one of the formulations used in the storage modelling in [Chapter @sec:info] and described in [Appendix @sec:appendix-milps]). - +Finally, **[Chapter @sec:conclusion]** concludes the thesis. In this chapter, I summarise the contributions of this thesis and highlight avenues for further work.