Intraday Market Design in the U.S. for Wind Power Integration

Increasing penetration of intermittent renewable energy sources poses a challenge to the two-settlement energy market structure adopted in the United States because renewable production forecasts become less accurate as the forecast horizon increases. This may lead to inefficient scheduling and dispatch of the conventional generation fleet, and increase the need for uplift payments. Could efficiency in U.S. power system operations be improved through a multi-settlement market structure where production schedules and commitment decisions are adjusted as updated renewable production forecasts become available? We investigate whether intraday markets lead to more efficient scheduling and dispatch of the generation fleet and lower uplift payments in the U.S., relative to the current two-settlement design. Simulations of power market outcomes for a two-settlement structure are found using a 36-bus, 755-generator test system based on the Northeastern U.S. and Canada. Non-public data from ISO New England is used to create multiple wind production forecast scenarios, allowing for wind forecast uncertainty in the simulations. Day-ahead and real-time system price, cost, and uplift results are presented for a representative year.