Pricing Multi-Interval Dispatch Under Uncertainty Part I: Dispatch-Following Incentives

Pricing multi-interval economic dispatch of electric power under operational uncertainty is considered in this two-part paper. Part I investigates dispatch-following incentives profit-maximizing generators and shows that, mild conditions, no uniform-pricing scheme for the rolling-window provides that avoid discriminative out-of-the-market uplifts. A nonuniform pricing mechanism, referred to as temporal locational marginal (TLMP), proposed. As an extension standard (LMP), TLMP takes into account both generation ramping-induced opportunity costs. It eliminates need uplifts guarantees full regardless accuracy demand forecasts used dispatch. also shown TLMP, a price-taking market participant has bid truthfully with its cost generation. II paper extends theoretical results developed more general network settings. broader set performance measures, including truthful revelation ramping limits, revenue adequacy operator, consumer payments, generator profits, price volatility model forecast errors.