On a Market Design of Emergency DSR in Poland - Valuation and Optimal Acquisition of Services

Abstract

In pursuit of the security of Power System, TSOs acknowledge the importance of activating demand side. However, any efficient design a DSR framework faces a trade-off between simplicity of a sharp definition of the service and the number of participants meeting the stringent entry requirements. In this work a different paradigm is presented by employing the techniques of operational optimization to settle a tender. The potential service providers are asked to list their available capacity, economic evaluation and other technical qualities in a form of offer. Next, the TSO assesses the offers and constructs a suitable subset of offers using a selection algorithm comparable to those solving Knapsack or Unit Commitment problems. Consequently, a competitive market for curtailment services is created. We prove it by case studies based on real offers for the Polish Emergency DSR.