Risk-Based Capacity Accreditation of Resource-Colocated Large Loads in Capacity Markets

Abstract: We study capacity accreditation of resource-colocated large loads, defined as large demands such as data center and manufacturing loads colocated with behind-the-meter generation and storage resources, synchronously connected to the bulk power system, and capable of participating in the wholesale electricity market as an integrated unit. Because the qualified capacity of a resource portfolio is not equal to the sum of its individual resources' qualified capacities, we propose a novel risk-based capacity accreditation framework that evaluates the collective contribution to system reliability. Grounded in the effective load carrying capability (ELCC) metric, the proposed capacity accreditation employs a convex optimization engine that jointly dispatches colocated resources to minimize reliability risk. We apply the developed methodology to a hydrogen manufacturing facility with colocated renewable generation, storage, and fuel cell resources.