Differentiated Pricing-Mechanism Design for Renewable Energy with Analytical Uncertainty Representation.
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| Title: | Differentiated Pricing-Mechanism Design for Renewable Energy with Analytical Uncertainty Representation. |
|---|---|
| Authors: | Liu, Xianzhuo1 (AUTHOR), Yuan, Xue2 (AUTHOR) xueyuanncepu@163.com, An, Qi1,2 (AUTHOR), Liu, Jiale1,2 (AUTHOR) |
| Source: | Energies (19961073). Sep2025, Vol. 18 Issue 18, p4922. 23p. |
| Subjects: | Renewable energy sources, Marginal pricing, Free-rider problem, Energy storage, Resource allocation, Time-based pricing, Energy industries, Measurement uncertainty (Statistics) |
| Abstract: | With the integration of high-penetration renewable energy, existing uniform marginal pricing mechanisms face critical challenges, including difficulty in recovering flexibility resource capacity costs and free-riding phenomena caused by renewable energy's variability. To address these issues, this paper proposes a differentiated pricing mechanism for renewable energy based on analytical uncertainty representation to avoid marginal price distortion and promote the rational allocation of ancillary service costs. Firstly, a joint clearing model for energy and reserve ancillary service is developed, incorporating a distributional robust chance constraint based on moment information to model the uncertainty of renewable energy. Then, the composition structure of the nodal marginal price for ancillary service demand is redefined, offering clearer and more explicit price signals compared with traditional uniform marginal pricing. After that, quantification of the impact of energy storage on renewable energy forecast errors and ancillary service pricing is conducted, with a systematic analysis of its role in reducing ancillary service costs and optimizing generation revenue. Simulation results on the modified IEEE 30-bus system demonstrate significant advantages over traditional uniform pricing: the proposed mechanism ensures fair cost allocation, effectively mitigates free-riding problems, and provides clear economic signals. With energy storage units regulating renewable power output, it could lead to a 12.9% reduction in ancillary service costs while increasing total generation revenue by 6.73%. [ABSTRACT FROM AUTHOR] |
| Copyright of Energies (19961073) is the property of MDPI and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.) | |
| Database: | Engineering Source |
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| Header | DbId: egs DbLabel: Engineering Source An: 188282375 AccessLevel: 6 PubType: Academic Journal PubTypeId: academicJournal PreciseRelevancyScore: 0 |
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| Items | – Name: Title Label: Title Group: Ti Data: Differentiated Pricing-Mechanism Design for Renewable Energy with Analytical Uncertainty Representation. – Name: Author Label: Authors Group: Au Data: <searchLink fieldCode="AR" term="%22Liu%2C+Xianzhuo%22">Liu, Xianzhuo</searchLink><relatesTo>1</relatesTo> (AUTHOR)<br /><searchLink fieldCode="AR" term="%22Yuan%2C+Xue%22">Yuan, Xue</searchLink><relatesTo>2</relatesTo> (AUTHOR)<i> xueyuanncepu@163.com</i><br /><searchLink fieldCode="AR" term="%22An%2C+Qi%22">An, Qi</searchLink><relatesTo>1,2</relatesTo> (AUTHOR)<br /><searchLink fieldCode="AR" term="%22Liu%2C+Jiale%22">Liu, Jiale</searchLink><relatesTo>1,2</relatesTo> (AUTHOR) – Name: TitleSource Label: Source Group: Src Data: <searchLink fieldCode="JN" term="%22Energies+%2819961073%29%22">Energies (19961073)</searchLink>. Sep2025, Vol. 18 Issue 18, p4922. 23p. – Name: Subject Label: Subjects Group: Su Data: <searchLink fieldCode="DE" term="%22Renewable+energy+sources%22">Renewable energy sources</searchLink><br /><searchLink fieldCode="DE" term="%22Marginal+pricing%22">Marginal pricing</searchLink><br /><searchLink fieldCode="DE" term="%22Free-rider+problem%22">Free-rider problem</searchLink><br /><searchLink fieldCode="DE" term="%22Energy+storage%22">Energy storage</searchLink><br /><searchLink fieldCode="DE" term="%22Resource+allocation%22">Resource allocation</searchLink><br /><searchLink fieldCode="DE" term="%22Time-based+pricing%22">Time-based pricing</searchLink><br /><searchLink fieldCode="DE" term="%22Energy+industries%22">Energy industries</searchLink><br /><searchLink fieldCode="DE" term="%22Measurement+uncertainty+%28Statistics%29%22">Measurement uncertainty (Statistics)</searchLink> – Name: Abstract Label: Abstract Group: Ab Data: With the integration of high-penetration renewable energy, existing uniform marginal pricing mechanisms face critical challenges, including difficulty in recovering flexibility resource capacity costs and free-riding phenomena caused by renewable energy's variability. To address these issues, this paper proposes a differentiated pricing mechanism for renewable energy based on analytical uncertainty representation to avoid marginal price distortion and promote the rational allocation of ancillary service costs. Firstly, a joint clearing model for energy and reserve ancillary service is developed, incorporating a distributional robust chance constraint based on moment information to model the uncertainty of renewable energy. Then, the composition structure of the nodal marginal price for ancillary service demand is redefined, offering clearer and more explicit price signals compared with traditional uniform marginal pricing. After that, quantification of the impact of energy storage on renewable energy forecast errors and ancillary service pricing is conducted, with a systematic analysis of its role in reducing ancillary service costs and optimizing generation revenue. Simulation results on the modified IEEE 30-bus system demonstrate significant advantages over traditional uniform pricing: the proposed mechanism ensures fair cost allocation, effectively mitigates free-riding problems, and provides clear economic signals. With energy storage units regulating renewable power output, it could lead to a 12.9% reduction in ancillary service costs while increasing total generation revenue by 6.73%. [ABSTRACT FROM AUTHOR] – Name: AbstractSuppliedCopyright Label: Group: Ab Data: <i>Copyright of Energies (19961073) is the property of MDPI and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract.</i> (Copyright applies to all Abstracts.) |
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| RecordInfo | BibRecord: BibEntity: Identifiers: – Type: doi Value: 10.3390/en18184922 Languages: – Code: eng Text: English PhysicalDescription: Pagination: PageCount: 23 StartPage: 4922 Subjects: – SubjectFull: Renewable energy sources Type: general – SubjectFull: Marginal pricing Type: general – SubjectFull: Free-rider problem Type: general – SubjectFull: Energy storage Type: general – SubjectFull: Resource allocation Type: general – SubjectFull: Time-based pricing Type: general – SubjectFull: Energy industries Type: general – SubjectFull: Measurement uncertainty (Statistics) Type: general Titles: – TitleFull: Differentiated Pricing-Mechanism Design for Renewable Energy with Analytical Uncertainty Representation. Type: main BibRelationships: HasContributorRelationships: – PersonEntity: Name: NameFull: Liu, Xianzhuo – PersonEntity: Name: NameFull: Yuan, Xue – PersonEntity: Name: NameFull: An, Qi – PersonEntity: Name: NameFull: Liu, Jiale IsPartOfRelationships: – BibEntity: Dates: – D: 15 M: 09 Text: Sep2025 Type: published Y: 2025 Identifiers: – Type: issn-print Value: 19961073 Numbering: – Type: volume Value: 18 – Type: issue Value: 18 Titles: – TitleFull: Energies (19961073) Type: main |
| ResultId | 1 |
