Daily Unit Commitment Optimization under Uncertainty in Market Price of Electricity and Reserve

Abstract

Discussions are underway to make the reserve market to a day-ahead market starting in 2026. When it is realized, power producers need to make three types of plans for the next day: a unit commitment, bids for electricity market, and bids for reserve market. In a free competition, power producer needs to make these plans ensuring a stable earning. In this study, we present a practical method to plan a risk-averse unit commitment along with bids for electricity market, and reserve market. The numerical results show that a proposed method improves CVaR of a revenue from 1.40 to 5.14% within one hour of calculation time.