In the rapidly evolving energy landscape, the integration of distributed wind power has presented both opportunities and challenges. As power systems strive to accommodate these intermittent resources, the demand for flexible demand-side resources has surged. However, the fragmented nature of these resources—often small in capacity and geographically dispersed—has hindered their effective utilization within existing market mechanisms. A recent study published in *Power Construction* (Dianli jianshe) by researchers from Sichuan University and State Grid Sichuan Electric Power Company offers a promising solution to this conundrum.
The research, led by SHI Wenjie and colleagues, introduces a day-ahead combined electricity-flexible resource market trading mechanism based on the Nash negotiation model. This innovative approach aims to optimize the participation of diverse demand-side resources in the energy market, ultimately enhancing system flexibility and market efficiency.
“Our goal was to create a mechanism that not only addresses the challenges posed by the integration of distributed wind power but also fosters a more rational pricing mechanism for flexible resources,” said SHI Wenjie, the lead author of the study. The proposed mechanism operates in two stages: the electricity-trading stage and the flexibility trading stage. In the first stage, market participants determine their initial electricity-trading plans using a Nash negotiation model. The supply-demand balance of flexible resources is then assessed to determine if flexibility trading is necessary. In the second stage, bidding quantity and pricing principles for flexibility resources are proposed, and the corresponding trading plans are derived using the Nash negotiation model. Finally, considering the capacity-coupling relationship between electricity and flexible resources, electricity trading plans are updated to form the final combined market trading schedule.
The study’s case study involving multiple types of demand-side resources demonstrated the effectiveness of the proposed mechanism. It not only enhanced and coordinated the benefits for multiple market participants but also achieved a reasonable allocation of market benefits after the introduction of flexible resources. “The results show that our mechanism can provide a more rational pricing mechanism for flexible resources compared to conventional methods,” added SHI.
The implications of this research are significant for the energy sector. As the integration of renewable energy sources continues to grow, the need for flexible demand-side resources will only increase. The proposed mechanism offers a viable solution to the trading challenges posed by the small capacity and scattered distribution of these resources. By increasing the enthusiasm of demand-side resources to participate in the market, it paves the way for the market-oriented development of flexible resources.
“This research is a step forward in addressing the increased flexibility demands caused by the integration of distributed wind power,” said SHI. “It provides theoretical support for the market-oriented development of flexible resources and could shape future developments in the field.”
As the energy sector continues to evolve, innovative solutions like the one proposed by SHI and colleagues will be crucial in ensuring a stable, efficient, and flexible power system. The study’s findings offer valuable insights for policymakers, market operators, and energy companies looking to harness the full potential of demand-side resources in the transition to a more sustainable energy future.