Load forecasting and risk assessment for energy market with renewable based distributed generation

This paper projects the risk associated with social benefit gained by Independent System Operator (ISO) due to unpredictability of load demand and intermittent nature of Renewable Energy Sources (RES). The hybrid method i.e. Wavelet Transform-Auto Regression Integrated Moving Average (WT-ARIMA) is used for forecasting the load in day-ahead market. The load demand for 24 hours is forecasted using the historical hourly data of 2 months. The mean absolute percentage error (MAPE) is calculated for both classical ARIMA and WT-ARIMA model. When compared to the ARIMA model, the WT-ARIMA model has a better fit to the time series data. This paper relates the load forecasting with energy market and shows the impact of forecasting error on market parameters. The system parameters like generation cost, social benefit and power loss are analyzed in day-ahead and real-time market. This work also elaborates the effect of intermittent nature of RES on the system parameters. The optimal location of RES based distributed generation is identified by higher Locational Marginal Price (LMP) based ranking method. The optimal energy management problem is formulated with the aim to minimize the total generation cost taking into account the variability in wind power and solar power. The uncertainty modeling of wind and solar is projected by the Rayleigh and Beta distribution respectively. The risk associated with social benefit of ISO due to uncertainty of wind and solar is calculated using indices, Value at Risk and Conditional Value at Risk. The proposed approach is implemented on IEEE 30 bus system. (c) 2022 Elsevier Ltd. All rights reserved.