journal article·2026-02-22Open access

Coordinated Energy–Reserve Market Clearing and Pricing Mechanism for Regional Power Systems with High Wind Penetration

Peng Zou, Xiaotao Luo, Xueting Cheng, Yizhao Liu, Jianbin Fan, Jian Le, Zheng Fang

Applied Sciences· Volume 16· Issue 4

Abstract

Addressing the challenges of insufficient reserve capacity allocation and wind power uncertainty-induced security and economic concerns under high wind power penetration, this paper develops an integrated energy–reserve market clearing model for regional electricity markets. Firstly, a comprehensive day-ahead market clearing mechanism is designed, encompassing market participant bidding, security-constrained unit commitment (SCUC), security-constrained economic dispatch (SCED), nodal marginal price calculation, and market settlement. Secondly, a SCUC model targeting the minimization of total system operating costs and a SCED model targeting the minimization of energy and reserve procurement costs are established, comprehensively incorporating constraints, such as power balance, unit output and ramping limits, reserve requirements, and network power flows, with nodal marginal prices calculated using the Lagrangian multiplier method. Finally, simulation verification is conducted using a modified IEEE 30-bus system as a case study. Results demonstrate that the proposed model effectively coordinates wind power integration with system reserve requirements, achieving economically optimal dispatch while ensuring grid security and stability. Thermal units obtain substantial market revenues by providing reserve ancillary services, while wind units achieve high revenues through zero marginal cost advantages, fully validating the model’s effectiveness and economic efficiency under high wind power penetration conditions. The research findings provide theoretical foundations and practical guidance for constructing electricity spot market mechanisms adapted to large-scale renewable energy integration.
Source: crossref · Quality: baseline

Research context

OpenAlex topics: Electric Power System Optimization · Integrated Energy Systems Optimization · Energy Load and Power Forecasting

SciVX discovery tags are terminology-based. OpenAlex topics are source-provided classifications.

Affiliations

Shanxi Power Exchange Center Co., Ltd., Taiyuan 030025, China

Institute of Next Generation Power Systems and International Standards, Wuhan University, Wuhan 430072, China

State Grid Shanxi Electric Power Research Institute, Taiyuan 030024, China

Funding

Science and Technology Project of State Grid Shanxi Electric Power Co., Ltd. “Capacity Adequacy Mechanism Design and Key Technologies for New Power System”

References (30)

Show source-provided references
1. Valuva, C., Chinnamuthu, S., Khurshaid, T., and Kim, K.-C. (2023). A Comprehensive Review on the Modelling and Significance of Stability Indices in Power System Instability Problems. Energies, 16.10.3390/en16186718 ↗
2. Impacts of terminal voltage control on stability of power synchronization control in grid-forming converter connected to low-impedance grid10.1109/TPEL.2025.3620140 ↗
3. Chance-Constrained Peer-to-Peer Joint Energy and Reserve Market Considering Renewable Generation Uncertainty10.1109/TSG.2020.3019603 ↗
4. Huang, Z., Fang, Z., Fu, J., Wang, Z., Zhang, Y., Xue, Y., Fan, Y., and Shu, Y. (2025). Analytical evaluation of voltage stability based on stability region boundary and probability transformation method. IEEE Trans. Sustain. Energy, 1–14.10.1109/TSTE.2025.3633590 ↗
5. Reserve Model of Energy Storage in Day-Ahead Joint Energy and Reserve Markets: A Stochastic UC Solution10.1109/TSG.2020.3009114 ↗
6. Wang, C., Ni, M., Shi, Y., Zhang, L., Li, W., and Li, X. (2023). Optimizing Power Market Clearing with Segmented Electricity Prices: A Bilevel Model. Sustainability, 15.10.3390/su151813575 ↗
7. Chen, L., Hao, W., and Cheng, Z. (2024, January 24). A Co-Optimization Method for Energy Storage Participating Day-Ahead Energy and Reserve Market. Proceedings of the 2024 4th Power System and Green Energy Conference (PSGEC), Shanghai, China.10.1109/PSGEC62376.2024.10721180 ↗
8. Liu, Y., Chen, M., Fan, Y., Ying, L., Cui, X., and Zou, X. (2024). Design of a Stochastic Electricity Market Mechanism with a High Proportion of Renewable Energy. Energies, 17.10.3390/en17123044 ↗
9. (2025, December 26). National Energy Administration Releases National Power Industry Statistics for January–August 2025, Available online: https://www.nea.gov.cn/20250926/2e8ea0184702461f8531527b015964d5/c.html.
10. Liang, J., Liu, D., Shi, L., Zhao, X., Zhang, C., Meng, Q., Hao, Z., and Wang, C. (2025). Design of Medium- and Long-term Reserve Capacity Market Mechanisms to Accommodate the Participation of New Types of Entities. Power Syst. Technol., 1–16.
11. Irregular distribution of wind power prediction10.1007/s40565-018-0446-9 ↗
12. Design and Practice of Power Reserve Ancillary Service Market Mechanism of Shanxi in China
13. Typical foreign ancillary service market products and enlightenment to China
14. Analysis of reserve relaxations in electric energy markets10.1016/j.epsr.2016.08.006 ↗
15. European Union electricity markets: Current practice and future view10.1109/MPE.2018.2871739 ↗
16. Implementation of scarcity pricing without co-optimization in European energy-only balancing markets10.1016/j.jup.2022.101488 ↗
17. Research on Interconnection Mechanism Between Reserve and Spot Power Markets
18. Co-optimization Model of Energy and Reserve Auxiliary Service for Regional Interconnected Power Grid
19. Bidding Strategy for Independent Energy Storage Participating in The Day-Ahead Energy and Reserve Joint Market
20. Analysis on Coupling Mechanism of Joint Clearing Electricity Prices in Electric Power Energy and Ancillary Service Markets
21. Chen, W., and Yuan, S. (2025). Analysis of Bidding Strategies in Joint Energy-Ancillary Service Markets Considering Participation of Virtual Power Plants with Concentrated Solar Power. Integr. Intell. Energy, 1–11. Available online: https://link.cnki.net/urlid/41.1461.TK.20251124.1606.008.
22. Design of color-coded pricing for electric vehicle aggregators participating in energy-reserve markets
23. A joint clearing model of power energy and reserve ancillary service market considering flexible load
24. SCED model and interval optimization considering uncertain wind power
25. Day-ahead optimized economic dispatch of CCHP microgrid considering wind power uncertainty
26. An enhanced contingency-based model for joint energy and reserve markets operation by considering wind and energy storage systems10.1109/TII.2020.3009105 ↗
27. Mi, Z., Jia, Y., Wang, J., and Zheng, X. (2018). Optimal Scheduling Strategies of Distributed Energy Storage Aggregator in Energy and Reserve Markets Considering Wind Power Uncertainties. Energies, 11.10.3390/en11051242 ↗
28. Joint clearing model of the power spot market considering wind power uncertainty
29. Ma, Y. (2025). Research on Day-Ahead Market Clearing Model Considering Inertia Demand. [Master’s Thesis, Donghua University].
30. Yang, F., and Yang, Z. (2025). Inter-Provincial Energy-Reserve Co-Optimization Clearing Method Considering Tie-Line Capacity Reservation for Reserve. Trans. China Electrotech. Soc., ahead of print.