Agent-based valuation of wind uncertainty in electricity markets

To achieve decarbonization goals, the grid will need to integrate large amounts of renewable energy and manage the uncertainties associated with their generation forecasts. These uncertainties could either be managed through the central system operator or by the generation agents themselves (or a mix of the two). Part I of this talk will discuss some of the conceptual tradeoffs associated with centralized vs. decentralized uncertainty management in bulk power systems. Part II will present a framework for agents to price their own uncertainty and examine some preliminary results on a small-scale power system with synthetic wind forecasts.