Stochastic Nodal Adequacy Platform: Spot Pricing of Adequacy

Abstract

The modern power system is becoming significantly more reliant on weather-dependent generation technologies. Existing resource adequacy metrics are not adequate for systems with a high penetration of weather-dependent, stochastically behaving renewable resources. This paper provides an overview of the Stochastic Nodal Adequacy Platform (SNAP), a novel approach for evaluating the adequacy of a large-scale electrical grid at the nodal level while accounting for the stochastic nature of weather-dependent system components, the physical operation of the system, and the economics and market design governing unit commitment and dispatch. The output of a SNAP analysis is a set of metrics that quantify the adequacy of the system and the physical contribution and economic value that each individual system component contributes towards overall system adequacy. The latter metric – the SNAP value – is an hourly marginal resource adequacy price at every node in the system that can be integrated into existing power market design.