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Redefining the Merit Order of Stochastic Generation in Forward Markets

This letter proposes a new merit order for the dispatch of stochastic production in forward markets (e.g., day-ahead markets). The proposed merit order considers not only the marginal cost of the stochastic generating unit, which is often very low or zero, but also the projected cost of balancing its energy deviations during the real-time operation of the power system. We show, through an illustrative example, that the proposed merit order leads to increased market efficiency as the penetration of stochastic generation in the electricity market grows.
- Technical University of Denmark Denmark
- IT University of Copenhagen Denmark
- University of Copenhagen Denmark
- University of Copenhagen Denmark
Renewable energy, Merit order, Stochastic programming, renewable energy, merit order, stochastic programming, Stochastic generation, Bilevel programming, stochastic generation
Renewable energy, Merit order, Stochastic programming, renewable energy, merit order, stochastic programming, Stochastic generation, Bilevel programming, stochastic generation
citations This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).17 popularity This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.Top 10% influence This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).Top 10% impulse This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.Top 10%
