ABSTRACT
In recent years, electricity network integration and renewables have been at the center of the transition to less carbon-intensive and more sustainable energy systems. By expanding the concept of multiple electricity markets to ancillary service markets, the present study aims to analyze the arbitrage strategy of power plants in various electricity markets in the context of the asymmetric development of renewable energy sources. In addition, the impact of arbitrage opportunities on the price and cost of markets and the revenue sufficiency of the power plants are analyzed. To do so, several objective functions regarding the multiple electricity markets are modeled in an agent-based simulation framework. According to the results, the external capacity arbitrage increases by increasing energy price share on market price. Comparing the case studies reveals that the cost of energy and reserve within multiple electricity markets is higher than independent markets, indicating a new circumstance of gaming in the multiple electricity markets.
Disclosure statement
No potential conflict of interest was reported by the author(s).
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