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Machine Learning Derived Dynamic Operating Reserve Requirements in High-Renewable Power Systems

Accurately forecasting wind and solar power output poses challenges for deeply decarbonized electricity systems. Grid operators must commit resources to provide reserves to ensure reliable operations in the face of forecast errors, a process which can increase fuel consumption and emissions. We apply neural network-based machine learning to expand the usefulness of median point forecast data by creating probabilistic distributions of short-term uncertainty in demand, wind, and solar forecasts that adapt to prevailing grid conditions. Machine learning derived estimates of forecast errors compare favorably to estimates based on incumbent methods. Reserves derived from machine learning are usually smaller than values derived using incumbent methods, which enables fuel savings during most hours. Machine learning reserves are generally larger than incumbent reserves during times of higher forecast error, potentially improving system reliability. Performance is tested using multi-stage production simulation modeling of the California Independent System Operator (CAISO) system. Machine learning reserves provide production cost and greenhouse gas (GHG) emission reductions of approximately 0.3% relative to historical 2019 requirements. Savings in the 2030 timeframe are highly dependent on battery storage capacity. At lower levels of battery capacity, savings of 0.4% from machine learning reserves are shown. Significant quantities of battery storage are expected to be added to meet California's resource adequacy needs and GHG reduction targets. Addition of these batteries saturate reserve needs and results in minimal within-hour balancing costs in 2030.