Joint Energy and Frequency Regulation Market Clearing Considering Wind Power Uncertainty

Efficient integration of renewable power such as wind energy in electricity markets is among the highest priorities. However, the deterministic market designs may not effectively adapt to the uncertainty of renewable power. In this paper, we investigate a joint energy and frequency regulation market clearing considering wind power uncertainty. By introducing the chance-constrained market design, we propose a joint market-clearing strategy for both conventionally deterministic units and uncertain wind farms. By the simulation based on real market data, we show that as the confidence level increases, system stability improves, but this comes at the expense of increased wind abandonment losses and higher operating costs in the market. Simultaneously, a higher penetration of wind power leads to lower market operating costs and energy shadow prices.