Controllable Demand for Electricity Systems with High Wind Penetrations

The objective of this paper is to analyse the design of market mechanisms that provide support for the adoption of renewable energy sources (RES) into the electricity system. Once RES become a significant share of the generation portfolio, the reliable and secure operation of the electricity system is threatened. The underlying question is how to better manage the uncertainty of these RES, specifically wind, in an equitable way, so social planners can optimally operate and contract for energy and ancillary services, and make use of the available network resources, such as energy storage systems (ESS) and deferrable demand (DD). While using storage collocated with wind farms is a supply side mechanism that allows reducing the variability in outputs from RES, the use of deferrable demands actively engages the demand side of the market, , thus bringing benefits in terms of the transmission congestion observed and other system metrics, such as the amount of capacity needed to reliably cover the demand.