The ancillary services are of immanent importance for secure and reliable network operation. As a result of the energy turnaround in Germany, conventional power plant capacities that have so far provided these ancillary services will significantly be reduced. Particularly with regard to frequency control and grid operation, it has already become apparent today that high costs can be expected if current practice and market conditions are maintained. The aim of this thesis is to investigate options for a cost-efficient transformation of the electricity system with a focus on the ancillary services frequency control and grid operation. In a first step, the ancillary services and their development in the recent past is addressed. In a second step, the effects of different cooperation between network operators on network operation are investigated. Here it is shown that in the medium term an intensified cooperation on transmission grid operator level has a positive impact on the operation of the grid. In the long term, it is necessary for distribution system operators to cooperate more closely in order to ensure cost-efficient and secure network operation. In a third step, options for the market design of balancing power markets are examined. The results show that it is necessary to make tendering times more flexible so that renewable energies can participate in the markets and, at the same time, more players can participate in these markets. With these adjustments it is possible to significantly reduce the cost of balancing power to levels below those of 2014. Finally, it is examined which market inefficiencies may occur in more flexible balancing markets due to strategic bidding behavior. Especially in the upward markets it can be seen that increasing market inefficiencies are to be expected, which, however, can be limited by increased international cooperation and the participation of renewable energies.

The goal of this study is to determine the economic implications of incorporating intermittent renewable energy into current power systems. The study also considers how to achieve an optimal mix of generating assets with renewable power, as well as the costs and advantages of using renewable energy sources to reduce CO2 emissions. Furthermore, this study examines how renewable energy exacerbates the "missing money" problem, which is a critical problem in electricity market design. The last part of this research is devoted to the calibration of the hybrid electricity grid model. We adopt positive mathematical programming (PMP) to calibrate the quadratic cost function for fossil fuel power plants. The calibrated model enables us to better analyze the impact of renewable energy on the electricity market. We find that due to the intermittency of wind and solar power, renewable energy could replace part of the peak load capacity like gas turbines but is not able to replace most of the base load capacity like coal capacities. The unintended consequences are that to eliminate the coal base load capacity, other forms of baseload capacities such as nuclear or hydropower capacity are necessary to incorporate the intermittent renewable power. Moreover, the capacity factors of remained peak load capacities and newly built base load capacities declined. Further support policies for maintaining the capacity adequacy standard are necessary for a reliable hybrid electricity market. / Graduate / 2023-09-26

The Texas ERCOT market is one of the most open, deregulated electricity markets in the world. This open market brought electricity costs down for Texas residents and businesses, creating a much more competitive economic climate. However, these low prices currently generate insufficient revenue for generators to finance construction of new or replacement generation assets. In the instance of combined cycle advanced natural gas, the Independent Market Monitor 2012 annual report estimated that a plant needed to generate 2.5 times as much as revenue it did in 2012 to incent new generation. This author argues that while the gap is still significant, the continuous changes to the ERCOT market since its inception make an historical examination like that used by the IMM less accurate. New market rules such as price caps or changes in fuel markets through new technologies like hydraulic fracturing create a very different valuation gap than a model based on historical activity alone. This analysis attempts to get a more accurate approximation of the gap through the use of publicly traded futures contracts for natural gas and electricity. Electricity futures reflect market expectations of revenue based on current and future market rules. Gas futures reflect price expectations in light of market changes like fracturing, potential LNG exports, and other changes. Financial positions can be maintained in both markets to give a fixed rate of return. Using this method, one can create a very conservative valuation model that still more accurately reflects market sentiment. This thesis starts with a brief history of ERCOT deregulation from the early 2000s to present in order to clarify for the reader the changes that have taken place in the market. It then demonstrates the futures-valuation model using an advanced combined cycle power plant as an example. / text

In order to prevent power system blackout, and enhance system reliability, various forms of special protection systems (SPS) and defense plans have been implemented by utilities around the world. One of the main concerns in the design of an SPS is to assure whether the system could fit with the reliability specification requirements. The failure of SPS to detect the defined conditions and carry out the required actions, or to take unnecessary actions, could lead to serious and costly consequences. Thus, a quantitative reliability assessment for SPS is important and necessary. Using a single point value for the parameter to evaluate the reliability of SPS might give incomplete information about the system reliability due to the uncertainty of reliability model and input data. When a review study suggests that some modifications of the existing scheme are necessary, the sensitivity analysis techniques could provide the tools to do this investigation to identify the most significant components that have essential effects on the reliability of the SPS. In this dissertation, by incorporating an interval theory, a risk reduction worth importance concept, and a probabilistic risk-based index, a procedure is proposed to conduct parameter uncertainty analysis, identify critical factors in the reliability model, perform probabilistic risk assessments (PRA) and determine a better option for the refinement of the studied SPS decision process logic module. One of the existing SPSs of Taipower systems is used to illustrate the practicability and appropriation of the proposed design refinement procedure. With the advent of deregulation in the power industry, utilities have experienced a great pressure to fully utilize their current facilities to the maximum level. SPSs are often considered as a cost effective way in achieving this goal. This dissertation also presents a framework for quantitative assessment of the benefits and risks due to SPS implementation. Changes in energy, spinning reserve and customer interruption costs resulting from SPS operations are evaluated and risks of SPS operations and system security are assessed. The proposed methodologies are useful for power system planners and operators to evaluate the value and effectiveness of SPS for the remedy of transmission congestion and reliability problems.

The objective of the proposed research is to develop a cost-effective power flow controller to improve the utilization and reliability of the existing transmission, sub-transmission, and distribution networks. Over the last two decades, electricity consumption and generation have continually grown at an annual rate of around 2.5%. At the same time, investments in the Transmission and Distribution (T&D) infrastructure have steadily declined. Further, it has become increasingly difficult and expensive to build new power lines. As a result, the aging power-grid has become congested and is under stress, resulting in compromised reliability and higher energy costs. In such an environment it becomes important that existing assets are used effectively to achieve highest efficiency. System reliability is sacrosanct and cannot be compromised. Utility system planners are moving from radial towards networked systems to achieve higher reliability, especially under contingency conditions. While enhancing reliability, this has degraded the controllability of the network, as current flow along individual lines can no longer be controlled. The transfer capacity of the system gets limited by the first line that reaches the thermal capacity, even when majority of the lines are operating at a fraction of their capacity. The utilization of the system gets further degraded as the lines are operated with spare capacity to sustain overloads under contingencies. Market efficiency is also sub-optimal, with congestion on key corridors restricting the low-cost generators to connect to the end users, resulting in higher electricity prices for the consumers. The proposed technology offers the capability to realize a controllable meshed-network, with the ability to utilize static and dynamic capacity of the grid to provide system-wide benefits, including- increased line and system-capacity utilization, increased reliability, improved operation under contingencies, and rapid implementation. It would allow a broadening of the energy market, permitting owners to direct how energy flows on their wires, and making it easier to connect to new sources of generation.

Durch den Ausbau insbesondere wetterabhängiger erneuerbarer Energien steigen zukünftig die Anforderungen an die Bereitstellung von Flexibilität im Stromsektor. Wärmespeicher und Power-to-Heat-Anlagen in der Fernwärmeversorgung können einen großen Beitrag zur Bereitstellung von Flexibilität an der Schnittstelle von Strom- und Wärmesektor liefern. Die vorliegende Arbeit untersucht vor dem Hintergrund von unterschiedlichen regulatorischen Rahmenbedingungen, an welchen Märkten der Einsatz der Power-to-Heat-Anlagen aus Systemsicht den größten Mehrwert zur Integration von erneuerbaren Energien liefern kann. Mithilfe des Strommarktmodells MICOES-Europe wird der stündliche Kraftwerkseinsatz aller europäischen Kraftwerke vor dem Hintergrund des Ausbaus der erneuerbaren Energien untersucht. Ziel der gemischt-ganzzahligen Optimierung, die insbesondere techno-ökonomische Charakteristika thermischer Kraftwerke berücksichtigt, ist die kostenminimale Deckung des Strombedarfs im Großhandelsmarkt bei gleichzeitiger Erfüllung der Leistungsvorhaltung für Regelenergie. In Deutschland werden die größten Fernwärmenetze mit ihren zugehörigen Erzeugungsanlagen (Kraft-Wärme-Kopplungsanlagen, Heizwerke, Wärmespeicher) abgebildet und stündlich die optimale Deckung des Wärmebedarfs berechnet. In einem Szenario für das Jahr 2025 wird die Verfügbarkeit von 1.000 MW an Elektrokesseln in großen deutschen Fernwärmenetzen angenommen. Hierbei wird deren Einsatz nur am Spotmarkt oder nur für negative Sekundärregelleistung dem Fall gegenübergestellt, dass die Anlagen auf beiden Märkten agieren und sich situationsabhängig zwischen ihnen entscheiden können. Es werden dabei die Fälle verglichen, bei denen Elektrokessel entweder Abgaben auf den Stromverbrauch zahlen oder keine zusätzlichen Abgaben tragen müssen. Der Einsatz der Elektrokessel in Verbindung mit Wärmespeichern in der Fernwärmeversorgung kann den Einsatz der KWK-Anlagen so flexibilisieren, dass sich deren Stromerzeugung stärker an die Einspeisesituation der erneuerbaren Energien anpassen kann. Auf diese Weise kann in allen betrachteten Szenarien die marktbedingte Abregelung von erneuerbaren Energien verringert werden. Dabei sinken die CO2-Emissionen der Strom- und Wärmeversorgung ebenfalls in allen Szenarien. Die größten Reduktionen sowohl bei CO2-Emissionen als auch bei den variablen Kosten der Strom- und Wärmeerzeugung werden dabei in den Szenarien mit Teilnahme der Elektrokessel am Regelleistungsmarkt erreicht. Stellen Elektrokessel negative Sekundärregelleistung bereit, kann hierdurch die Must-run-Erzeugung thermischer Kraftwerke in Stunden mit hoher Einspeisung von erneuerbaren Energien deutlich gesenkt werden. Hierdurch ergibt sich ein großer Hebel für die Integration von Strom aus erneuerbaren Energien. / The requirements for the provision of flexibility in the power sector will increase in the future due to the expansion of the usage of weather-dependent renewable energy sources. Heat storage and power-to-heat-plants (electric boilers) in the district heating supply can provide flexibility at the interface of the power and heat sector. At the moment the use of power-to-heat plants is only cost-effective on the control power market due to the current regulation. High charges for the direct use of electricity impede a use on the spot market. The present work examines from a system perspective on which market the use of electric boilers can provide the largest benefits for the integration of renewable energies considering different regu-latory frameworks. The year 2025 is considered where Germany aims to reach a share of 40 to 45 % renewable energy generation in the gross power consumption. For this purpose the hourly power plant dispatch of all European power plants is examined using the electricity market model MICOES-Europe. The model describes the wholesale electricity market and the control power market (secondary and tertiary reserve). The aim of the mixed-integer optimization is the calculation of the cost-minimal coverage of the electricity demand in the wholesale market while at the same time fulfilling the provision of control power. The optimization takes into account in particular the techno-economic characteristics of thermal power plants. In Germany, the largest district heating grids with their associated generation plants (combined heat and power plants, fossil-fuel and electric boilers, heat storage) are modelled and the optimal coverage of the heat demand is calculated for every hour. With the assumed payment of high electricity charges the use of electric boilers on the spot market is no business case in 2025. The situation changes in the scenario without electricity charges. Here, electric boilers reach between 1,050 and 2,140 full load hours. If the electric boilers provide negative secondary control power, the must-run generation of thermal power plants in hours with a high feed-in of renewable energies can be reduced significantly. This results in a large lever for the integration of renewable energies. Electric boilers reach up to 1,800 full load hours by providing control energy, if they provide control power all year round and without payment of electricity charges. The use of the electric boilers in combination with heat storages in the district heating system can make the dispatch of combined heat and power plants more flexible, so that their electricity generation can be better adapted to the feed-in situation of renewable energies. In this way, the market-dependent curtailment of renewable energies can be reduced in all scenarios. The CO2-emissions of the electricity and heat supply can be reduced by this technology in Germany. Furthermore, CO2-emissions in other European countries can be reduced as well due to effects of the power trade. The highest reductions in both CO2-emissions and variable costs of electricity and heat generation are achieved in the scenarios with electric boilers participating in the control power market.

Year 2040 the goal is to have a 100 % renewable Swedish energy system. Svenska kraftnät (Svk) predicts fully decommissioned nuclear power plants and an increased amount of connected wind power plants, especially offshore, year 2045. These kind of renewable power plants are non-synchronous and do not provide the grid with the same system stability services naturally as synchronous generators, such as nuclear power plants. With the increased number of renewables connected, one future challenge is to maintain the stability of the power grid. Grid stability can be divided into voltage-, frequency- and rotor angle stability.This thesis has investigated how large-scale offshore wind power plants (OWPPs) can contribute with reactive power compensation and in turn voltage stability to a nearby onshore power grid in Sweden. The evaluation has been done from the perspective of the TSO and the OWPP owner interests, with a focus on grid codes, economic incentives and technical capabilities.This project has been made in three parts. First, a comparison of voltage stability control requirements in different European grid codes was made. Secondly, static power flow simulations of a case study of a 1000 MW OWPP have been performed in PowerWorld Simulator, testing the OWPP’s reactive power outputs under different circumstances. Thirdly, a market opportunity analysis has been completed, analyzing reactive power market opportunities for OWPPs as well as for TSOs.The study shows that the reactive power capabilities of the simulated OWPP is considerable higher than the Swedish grid codes requires. Thus, an opportunity is to make the grid codes stricter, in combination with economic incentives. The case study showed that the distance offshore has an impact of the reactive power reaching the grid onshore. Though, the OWPP’s contribution to local voltage stability onshore is considered as good. Finally, with short- and long-term contracts, a reactive power market can be favorable for both the OWPP owner and the TSO.

Since the financial crisis of 2008, the risk awareness has increased in the -financial sector. Companies are regulated with regards to risk exposure. These regulations are driven by the Basel Committee that formulates broad supervisory standards, guidelines and recommends statements of best practice in banking supervision. In these regulations companies are regulated with own funds requirements for market risks. This thesis constructs an internal model for risk management that, according to the "Capital Requirements Regulation" (CRR) respectively the "Fundamental Review of the Trading Book" (FRTB), computes the regulatory capital requirements for market risks. The capital requirements according to CRR and FRTB are compared to show how the suggested move to an expected shortfall (ES) based model in FRTB will affect the capital requirements. All computations are performed with data that have been provided from a power trading company to make the results fit reality. In the results, when comparing the risk capital requirements according to CRR and FRTB for a power portfolio with only linear assets, it shows that the risk capital is higher using the value-at-risk (VaR) based model. This study shows that the changes in risk capital mainly depend on the different methods of calculating the risk capital according to CRR and FRTB respectively and minor on the change of risk measure. / I samband med finanskrisen 2008 har riskmedvetenheten ökat i den finansiella sektorn. Företag regleras mot riskexponering av föreskrifter som drivs av Baselkommittén, de utformar tillsynsstandarder och riktlinjer samt rekommenderar åtgärder av bästa praxis. I dessa föreskrifter regleras företag av kapitalbaskrav mot marknadsrisker. I det här examensarbetet beskrivs processen för att ta fram en intern riskmodell, enligt "Capital Requirements Regulation"(CRR) respektive Fundamental Review of the Trading Book"(FRTB), för att beräkna de lagstadgade kapitalkraven mot marknadsrisker. Kapitalbaskraven enligt regelverken jämförs för att förstå hur det föreslagna bytet till en expected shortfall (ES) baserad modell i FRTB kommer att påverka kapitalbaskraven. I alla beräkningar anv änds data från ett elhandelsföretag för att göra resultaten mer intressanta och verklighetsanpassade. I resultatdelen, vid jämförelse av riskkapitalkraven enligt CRR och FRTB för en energiportfölj med endast linjära tillgångar kan det ses att riskkapitalet blir högre med en value-at-risk (VaR) baserad modell. Den viktigaste upptäckten med detta är att skillnaden i riskkapitalkraven inte främst beror på de olika riskmåtten utan snarare de olika metoderna för att beräkna riskkapitalet enligt CRR och FRTB.

Este trabalho aborda a inserção das fontes incentivadas de energia - PCHs, Biomassa, Eólica e Solar - no ambiente de comercialização de energia elétrica do setor elétrico brasileiro, mais especificamente na CCEE. Apesar de a legislação ter criado o consumidor especial em 1998, a falta de definição do processo de comercialização das fontes incentivadas impediu, durante anos, o crescimento deste mercado. Porém, para propor uma solução para esta implementação, é importante conhecer as atuais regras que regem a comercialização de energia, identificando, assim, as possibilidades de adequação. Por se tratar de um problema atual, várias propostas de solução foram apresentadas por agentes do setor através da Audiência Pública 33/05. Essas propostas também são analisadas no trabalho, de forma que a solução apresentada considera as vantagens e desvantagens do que foi discutido pelo mercado. Por fim, a simulação da solução proposta indica a sua viabilidade de implantação e permite uma análise crítica do mercado de fontes incentivadas e das Regras de Comercialização da CCEE. / This work approaches the insertion of the renewable energy sources - SHP, Biomass, Wind and Solar - in the Brazilian power trading environment, more specifically in Wholesale Market Administrator. Although the legislation created the special consumer in 1998, the lack of definition in the renewable energy trading process hindered this market development during years. However, to consider a solution for this implementation, it is important to know the current rules that conduct the power trading, therefore, identifying the possibilities of adjustment. Since this is a current subject, some proposals had been presented by sector agents through the Public Hearing 33/05. In this work, these proposals are also analyzed, so the presented solution considers the advantages and disadvantages of what was discussed by the market agents. Finally, the simulation of the proposed solution indicates its implementation viability and allows a critical analysis of the renewable energy sources market and the Trading Rules of the Wholesale Market Administrator.

Este trabalho aborda a inserção das fontes incentivadas de energia - PCHs, Biomassa, Eólica e Solar - no ambiente de comercialização de energia elétrica do setor elétrico brasileiro, mais especificamente na CCEE. Apesar de a legislação ter criado o consumidor especial em 1998, a falta de definição do processo de comercialização das fontes incentivadas impediu, durante anos, o crescimento deste mercado. Porém, para propor uma solução para esta implementação, é importante conhecer as atuais regras que regem a comercialização de energia, identificando, assim, as possibilidades de adequação. Por se tratar de um problema atual, várias propostas de solução foram apresentadas por agentes do setor através da Audiência Pública 33/05. Essas propostas também são analisadas no trabalho, de forma que a solução apresentada considera as vantagens e desvantagens do que foi discutido pelo mercado. Por fim, a simulação da solução proposta indica a sua viabilidade de implantação e permite uma análise crítica do mercado de fontes incentivadas e das Regras de Comercialização da CCEE. / This work approaches the insertion of the renewable energy sources - SHP, Biomass, Wind and Solar - in the Brazilian power trading environment, more specifically in Wholesale Market Administrator. Although the legislation created the special consumer in 1998, the lack of definition in the renewable energy trading process hindered this market development during years. However, to consider a solution for this implementation, it is important to know the current rules that conduct the power trading, therefore, identifying the possibilities of adjustment. Since this is a current subject, some proposals had been presented by sector agents through the Public Hearing 33/05. In this work, these proposals are also analyzed, so the presented solution considers the advantages and disadvantages of what was discussed by the market agents. Finally, the simulation of the proposed solution indicates its implementation viability and allows a critical analysis of the renewable energy sources market and the Trading Rules of the Wholesale Market Administrator.