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At least 37 records · Page 2

Tri-Level Scheduling Model Considering Residential Demand Flexibility of Aggregated HVACs and EVs Under Distribution LMP

Residential loads, especially heating, ventilation and air conditioners (HVACs) and electric vehicles (EVs), have great potentials to provide demand flexibility which is an attribute of grid-interactive efficient buildings (GEB). Under this new paradigm, first, EV and HVAC aggregator models are developed in this paper to represent the fleet of GEBs, in which the aggregated parameters are obtained based on a new approach of data generation and least squares parameter estimation (DG-LSPE), which can deal with heterogeneous HVACs. Then, a tri-level bidding and dispatching framework is established based on competitive distribution operation with distribution locational marginal price (DLMP). Furthermore, the first two levels form a bilevel model to optimize the aggregators’ payment and to represent the interdependency between load aggregators and the distribution system operator (DSO) using DLMP, and the third level is to dispatch the optimal load aggregation to all residents by the proposed priority list-based demand dispatching algorithm. Finally, case studies on a modified IEEE 33-Bus system illustrate three main technical reasons of payment reduction due to demand flexibility: load shift, DLMP step changes, and power losses. They can be used as general guidelines for better decision-making for future planning and operation of demand response programs.

24 POWER TRANSMISSION AND DISTRIBUTION↗

The Effect of Prosumer Duality on Power Market: The Effect of Market Regulation

Electricity prosumers are energy subsystems that not only consume, but also produce electricity. They are present in distribution level networks as traditional utility customers who have installed distributed energy resources. They are also present in transmission level networks as large conglomerates own both generation assets and large industrial loads. Previous work on the economics of prosumers has demonstrated that prosumers in a market have incentives to behave more competitively compared to producers and consumers in traditional markets. This paper further explores the behavior of prosumers and their response to market policies including the allocation of network losses and the impact of net metering. We extend a Cournot model of a dual prosumer and find that prosumers respond with higher supply quantities if network losses are allocated to demand base. They respond with lower supply quantities if network losses are allocated to supply base. Allocating network losses to demand base also causes equilibrium prices to decline. Markets where prosumers first satisfy their own load and then sell the balance of electricity to the grid have lower quantities and higher prices compared to markets where prosumers buy and sell at locational marginal price.

Tsybina, Eve↗

Analysis of Distributed Energy Storage as a Core Grid Infrastructure via Production Cost Modeling

Energy storage plays a pivotal role in enabling power system operation with more flexibility and resilience. Unlike current practice that considers energy storages as attached ancillary devices, this paper focuses on storages as a core infrastructure by looking at their spatial distribution in the system. A sensitivity analysis based on production cost modeling is conducted to demonstrate the benefits of distributed energy storages. First, the modeling of energy storages in production cost modeling is presented. Second, potential optimal locations of distributed energy storages in a power system are discussed. Finally, multiple scenarios with various numbers and locations of additional distributed energy storages in the WECC 2030 model are created. The production cost modeling results of these scenarios show that distributed energy storages have higher utilization compared to the centralized ES units and therefore provide significantly more benefits in terms of reduction in generation cost, emission cost, and volatility of location marginal prices. A saturation effect is observed suggesting the selection of optimal locations will further improve the benefits.

Nguyen, Quan H.↗

A computationally efficient algorithm for computing convex hull prices

Electricity markets worldwide allow participants to bid non-convex production offers. While non-convex offers can more accurately reflect a resource's capabilities, they create challenges for market clearing processes. For example, system operators may be required to execute side payments to participants whose costs are not covered through energy sales as determined via traditional locational marginal pricing schemes. Convex hull pricing minimizes this and other types of side payments while providing uniform (i.e., locationally and temporally consistent) prices. Computing convex hull prices involves solving either a large-scale linear program or the Lagrangian dual of the corresponding non-convex scheduling problem. Further, the former approach requires explicit descriptions of market participants' convex hulls. While linear programs for computing convex hull prices are large, their structure is naturally decomposable by generators. Here, in this work, we propose and empirically analyze a Benders decomposition approach to computing convex hull prices that leverages recent advances in convex hull formulations for thermal generating units. We demonstrate across a large set of test instances that our decomposition approach only requires modest computational effort, obtaining solutions at least an order of magnitude faster than the equivalent large-scale linear programming approach. Overall, we provide a computationally feasible method for computing convex hull prices for industrial scale market clearing problems, enabling the possibility of practical adoption of this advanced pricing mechanism.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Average Incremental Cost Pricing for the AC Unit Commitment Problem [Rev. 1]

Unit Commitment (UC) problems that consider the Alternating Current (AC) model of the transmission network have long been considered intractable to solve at scale by the power system community. Recently, the Grid-Optimization (GO) Competition held by the Advanced Research Project Agency-Energy (ARPA-E) has facilitated the development of the first algorithms to solve large-scale ACUC problems. This new capability opens a path towards the explicit consideration of the AC transmission network model in UC problems used to clear day-ahead electricity markets. This calls for the analysis of electricity market structures that accommodate both the continuous non-linearity of the AC transmission network and the discrete non-linearity of the UC problem simultaneously. This paper serves as an initial effort to do so by proposing an Average Incremental Cost (AIC) pricing structure that is designed around the ACUC problem. In particular, an AIC one-pass pricing problem is proposed that represents a continuously constrained variant of the ACUC problem and allows for the computation of Locational Incremental Prices (LIPs) for both real and reactive power as the local optimal Lagrange multipliers of the power balance constraints. To avoid degeneracy, the pricing problem includes a small parameter ϵ > 0. Under certain assumptions market participants are shown to realize profit that converges to a non-negative value as ϵ approaches zero, practically ensuring profitability for small values of ϵ. We additionally provide many simple and important examples that provide intuition and insights into the proposed prices. Examples illustrate the basic concept of AIC pricing, the derived profitability results, the existence of multiple LIPs, the importance of including reactive power in the dispatch and pricing problems, the need for reactive power prices, and the improved incentives exhibited by LIPs as compared to traditional Locational Marginal Prices (LMPs). We additionally indicate many directions for future work including analysis of larger test cases.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Market Pricing and Settlements Analysis Considering Capacity Sharing and Reserve Substitutions of Operating Reserve Products

Electricity market pricing and settlement are the key signals for real-time dispatch and long-term investment decisions. Regional transmission operators (RTOs) in the U.S. adopt uniform pricing scheme, which is based on the marginal costs of supplying an incremental MW of electric services. The marginal cost of an electric service is highly dependent on the constraints in the pricing models of RTOs. A slight difference in constraint modeling of pricing model on energy and ancillary services could result in drastically different market clearing prices (MCPs), cleared reserve quantities, and associated revenue. RTOs in the U.S. have various market designs and assumptions in ancillary services modeling in capacity sharing and reserve substitutes. This paper examines four combination models of capacity sharing and reserve substitutes and analyzes the associated market implications. The numerical results present that 1) cascading reserve requirements have direct impact on reserve pricing schemes 2) both cascading reserve requirements and sharing capacity have significant impact on reserve MCPs and locational marginal prices, and thus result in drastically different reserve revenue, energy revenue, generation cost, and generation profit.

ancillary services↗

Endogenous Interface Pricing for Consistent Transmission–Distribution Co-Optimization With Discrete Distribution Controls

This paper proposes an endogenous interface pricing model for day-ahead transmission–distribution co-optimization that co-determines the interface locational marginal price (LMP) and the transmission–distribution exchange, ensuring price–dispatch consistency while optimally scheduling discrete distribution controls. The formulation couples a DC optimal power flow (OPF) with a branch-flow AC OPF that schedules distributed energy resources (DERs), tap-changer settings, capacitor banks (CBs), and multi-period energy storage systems (ESSs) under feeder voltage and current limits, and is solved as a mixed-integer second-order cone program (MISOCP). In a T14–D33 system, coordinated device scheduling recovers about 90% of the distribution-to-transmission export achievable in a reference case that ignores distribution network (DN) limits, while satisfying a 1.05 p.u. voltage upper bound. In a T39–D34/D37/D123 system, a sequential decoupled benchmark produces interface LMP distortions up to 12.5% and a 7.28% mismatch in net export energy, whereas the proposed model removes these distortions and the associated settlement mismatches. Second-order cone (SOC) relaxation gaps remain below $10^{-3}$ in all cases.

Noh, Seung-Gil↗

A Computationally Efficient Algorithm for Computing Convex Hull Prices

Electricity markets worldwide allow participants to bid non-convex production offers. While non-convex offers can more accurately reflect a resource's capabilities, they create challenges for market clearing processes. For example, system operators may execute side payments when a participant’s cost is not covered through energy sale settlements from locational marginal pricing schemes, or when a participant incurs lost opportunity costs to follow the dispatch signal. Convex hull pricing minimizes these and other types of side payments while providing uniform (i.e., locationally and temporally consistent) prices. However, computing convex hull prices involves solving either a large-scale linear program - which in turn requires explicit descriptions of market participants’ convex hulls -or the Lagrangian dual of the corresponding non-convex scheduling problem. Here, we propose a computationally feasible and industrially scalable Benders decomposition approach to computing convex hull prices at least an order of magnitude faster than the current state-of-the-art while leveraging recent advances in convex hull formulations for thermal generating units.

61 RADIATION PROTECTION AND DOSIMETRY↗

DSO+T: Transactive Energy Coordination Framework (DSO+T Study: Volume 3)

This report describes a transactive energy coordination scheme designed to integrate into existing day-ahead and real-time wholesale energy markets. This scheme was evaluated in the Distribution System Operator with Transactive (DSO+T) study to assess the engineering and economic performance of the transactive energy coordination of a large-scale deployment of distributed energy resources (DER). Transactive agents were developed for a range of DERs (heating, ventilation, and air conditioning units, water heaters, batteries, and electric vehicles) that optimize flexibility over a 48-hour horizon and adjust their strategy in response to changes in real-time prices. A transactive energy coordination scheme, executed by a DSO retail market operator, aggregates these DER bids from participating customers and clears them against a DSO supply curve using a double auction market mechanism. The process of constructing the price-quantity DSO supply curve includes distribution-level transportation constraints (for example, substation congestion limits) and forecast locational marginal price of the DSO’s connected transmission node. The resulting day-ahead and real-time quantities are then bid into a competitive wholesale market operated by an independent system operator. This report also details additional capabilities for proper marketplace simulation such as wholesale price, weather, and load forecasting. The report concludes with a discussion of lessons learned and key design features required to ensure successful operation.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Stochastic Continuous-time Flexibility Scheduling and Pricing in Wholesale Electricity Markets

Large-scale integration of intermittent renewable energy sources (RES) is calling for additional flexibility resources as well as more advanced modeling and optimization techniques to account for the increasing uncertainty and variability in power systems operation. As the RES integration gains momentum, the magnitude and frequency of their variations increase, which may trigger ramping scarcity events in real-time power systems operation. This necessitates revisiting the present definition of power systems flexibility and reserve services to reflect their robustness and adequacy towards sub-interval variations of the load and RES, as well as adjusting the operation models to accommodate the new reserve services. This project took a fundamental approach and aimed at developing continuous-time scheduling and pricing model that accurately models the continuous-time variations of load and RES and efficiently deploys the ramping capability of flexible resources to compensate the sources of variability and uncertainty in the market. In this regard, this project pursued the following goals: Developing stochastic multi-fidelity continuous-time optimization models for scheduling of energy storage (ES) systems and flexible loads in wholesale energy markets; Developing the theory and practices of continuous-time locational marginal pricing for valuating energy storage systems and flexible loads in wholesale energy markets; Developing function space solution approach to convert the proposed stochastic multi-fidelity continuous-time optimization models into tractable mixed-integer linear optimization models; and Defining flexibility reserve as a new type of reserve in markets that would enable ultimate participation of energy storage devices in provision of services to compensate the variability and uncertainty of RES in electricity markets. This project successfully completed all five major tasks defined in the SOPO, and produced 8 high-impact journal papers, 6 conference papers, 3 published U.S. patents, and one web-based software for continuous-time operation optimization of power systems. The application of the proposed flexibility reserve and the stochastic multi-fidelity continuous-time operation scheduling models would modify the forward commitment and schedule of generating units, ES devices and flexible loads, and would line up the resources in such a way that the composition of available resources is better prepared to respond to the sub-hourly variations of the load and renewable resources in real-time operation. Therefore, this project paves the way to sustainable, reliable, and economic integration of renewable energy resources in power system, supporting the progress towards reaching the national targets on energy independence. Even if the proposed models offers a radically different point of view as compared to existing models, it does not alter fundamentally the architecture of power systems operations, nor the complexity of the scheduling problem, so the integration of this project in power systems is extremely practical.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Estimating Energy Market Schedules using Historical Price Data

The global climate crisis is expected to reshape the energy generation landscape in the coming decades. Increasing integration of non-dispatchable renewable energy resources into energy infrastructures and markets creates uncertainty as well as new opportunities for flexible energy systems. To conduct proper economic evaluation of flexible energy systems, such as integrated energy systems (IES), advancements in modelling of market interactions, such as bidding, is crucial. This work presents a shortcut algorithm which uses two mixed integer linear programs to compute dispatch schedules (e.g., hourly power production targets) that are constrained by the resource's bid information and characteristics (e.g., minimum up and down times) based on historical locational marginal price (LMP) data. The proposed algorithm is approximately 100 times faster and uses orders of magnitude less data than a full production cost model (PCM). We find the shortcut simulator recapitulates generator dispatch signals for the Prescient PCM with approximately 4% error for the RTS-GMLC test system.

electricity generation↗

Estimating Energy Market Schedules Using Historical Price Data: Preprint

The global climate crisis is expected to reshape the energy generation landscape in the coming decades. Increasing integration of non-dispatchable renewable energy resources into energy infrastructures and markets increases uncertainty and creates new opportunities for flexible energy systems. To conduct proper economic evaluation of flexible energy systems, such as integrated energy systems (IES), advancements in modelling of market interactions, such as bidding, is crucial. This work presents a shortcut algorithm which uses two mixed integer linear programs to compute dispatch schedules (e.g., hourly power production targets) that are constrained by the resource's bid information and characteristics (e.g., minimum up and down times) based on historical locational marginal price (LMP) data. This is orders of magnitude less data than required for a market clearing calculation with a full production cost model (PCM). We find the shortcut simulator recapitulates generator dispatch signals for the Prescient PCM with approximately 4% error for the RTS-GMLC test system.

electricity generation↗

Progressing Analysis of Variable Electric Rates (PAVER) Study

The Progressing Analysis of Variable Electric Rates (PAVER) study analyzed the impact of a range of time-varying electric rates on the performance of a regional electric grid and the resulting costs for participating and non-participating customers. This analysis leveraged and extended the work of PNNL’s Distribution System Operator with Transactive (DSO+T) study. Five different rate designs were included: a flat volumetric energy charge, a typical Time of Use (TOU) rate, a dynamic energy (DE) rate (based on wholesale locational marginal prices), a dynamic energy and capacity (DE+C) rate, and, finally, a Block and Swing (B&S) rate that billed customers based on their average load profile at constant pricing, but used the DE+C dynamic price for load deviations from their average profile. These rates were analyzed in a large-scale co-simulation of an entire regional grid with a customer population representative of the current state. A large fraction (80%) of residential and commercial customers were assumed to participate in these time-varying rates with automatically controlled HVAC, water heaters, electric vehicles, and batteries. This study assumed no industrial sector participation. The DE and DE+C rates saw system peak loads reduced by 6-7%, while the large participation in the TOU rate case saw a significant rebound effect and a resulting peak load increase of >5%. The impacts to the annual and peak system demand impacted system wholesale prices and the overall grid operating costs. This cost structure determined the revenue needed to be collected from customers by each rate design. Participating customers on the DE and DE+C rates (located in one of the modeled DSOs) saw reductions in average annual electricity bills of 11-17% with average increases in monthly bill variation of no more than 13%. At such high participation levels, TOU customers saw 10% higher average annual bills (due to system-wide rebound effects) and average increased monthly bill variation of 16%. Residential owners of large flexible loads (such as electric vehicles) saw larger bill savings (17-20%) when on a fully dynamic rate. The presence of on-site generation (such as rooftop solar) did not appear to appreciably change customer outcomes. Customers on the Block and Swing rate did see 6% lower monthly bill variation (as intended) than the flat rate case, but at the expense of appreciable bill savings, which were only 3%, comparable to the savings seen by non-participants. Given this finding we recommend that additional research be conducted into how best various bill protection mechanisms can balance minimizing customer bill variation with providing financial incentives commensurate with the flexibility customers provide. We also recommend that customer outcomes be explored across a range of regions using current actual customer and system cost data.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Net Present Value Optimization of a Natural Gas Combined Cycle Plant with CO 2 Capture using a Water-Lean Solvent Considering Transient Electricity Price for Multiple Regions

Global CO 2 emissions are increasing at about a 1.5% rate per year. Fossil fuel-based plants are one of the main contributors to this rise. In the power generation industry, fossil fuel plants are dominant, and many plants are under development. In this study, a natural gas combined cycle (NGCC) power plant with postcombustion capture using a leading water-lean solvent is considered. For optimal design and operating schedule, large-scale dynamic optimization is undertaken for net present value (NPV) optimization. The first principle dynamic model of NGCC is developed, including a model of the highly efficient H-class gas turbines. For computational tractability of the dynamic optimization problem, a reduced-order model is developed by using the Hankel singular value decomposition. A waterlean solvent, N-(2-ethoxyethyl)-3-morpholinopropan-1-amine, is used for carbon capture. A model of the capture system is developed in Aspen Plus, which is used to develop a reduced-order model by using ALAMO, a machine learning software. In addition, a reduced model of the CO 2 compression system with a dehydration unit is also considered. The integrated system is used for NPV optimization by using the Python-based PYOMO platform. The PCC process is analyzed for three configurations-conventional packed bed, rotating packed bed (RPB), and a combination of RPB and direct contact cooler. The NPV optimization is performed for 14 regional markets by considering year-long clustered and continuous locational marginal price data with a 1 h interval. Optimization results show that the PCC can achieve 90% CO 2 capture with a positive NPV for six regions. Sensitivity studies conducted by using the PCC configurations indicate that the process is economically feasible for 9 regions out of 14 regional electricity markets with NPV values in the range of 33−540 $MM.

cabon capture↗

An ERCOT test system for market design studies

An open source test system is developed that permits the dynamic modeling of centrally-managed wholesale power markets operating over highvoltage transmission grids. In default mode, the test system models basic operations in the Electric Reliability Council of Texas (ERCOT): namely, centrally-managed day-ahead and real-time markets operating over successive days, with congestion handled by locational marginal pricing. These basic operational features characterize all seven U.S. energy regions organized as centrally-managed wholesale power markets. Modeled participants include dispatchable generators, load-serving entities, and non-dispatchable generation such as unrmed wind and solar power. Users can congure a broad variety of parameters to study basic market and grid features under alternative system conditions. Users can also easily extend the test system's Java/Python software classes to study modied or newly envisioned market and grid features. Finally, the test system is integrated with a high-level simulation framework that permits it to function as a software component within larger systems, such as multi-country systems or integrated transmission and distribution systems. Finally, detailed test cases with 8-bus and 200-bus transmission grids are reported to illustrate these test system capabilities.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Opportunities for wave energy in bulk power system operations

Wave energy resources have high, yet largely untapped potential as candidate generation technology. In this paper, we perform a data-driven analysis to characterize the impact of wave energy integration on bulk-scale power systems and market operations. Through data-driven sensitivity studies centered on an optimization-based production cost modeling formulation, our work characterizes the inflection point beyond which wave integration starts impacting power system operations, considering present day transmission infrastructure. Furthermore, our analysis also considers the joint effects of wave energy integration and system-wide transmission expansion. Finally, potential resilience scenarios such as wildfire-driven transmission contingencies and heat wave events are investigated, whereby the contributions of grid-integrated wave energy in alleviating the effects of the resilience events are analyzed. As our demonstration test bed, we consider a reduced-order network topology for the U.S. Western Interconnection with wave energy generation integrated at carefully selected sites across the coastal areas of Washington, Oregon, and northern California. Our results indicate that over a representative year of operations, wave energy integration systematically reduces locational marginal prices (LMPs) of energy and price volatility, especially during periods of high wave resource availability (winter months for the U.S. west coast). Average, maximum, and minimum of hourly LMPs over a typical year of operation was reduced by 2.95, 51.28, and 1.13 $\$$/MWh respectively (over a baseline scenario with no wave energy integration), when the selected network model had a total of 5000 MW wave power installed capacity during the representative year of study. The effects of wave energy integration can remain localized with existing transmission infrastructure (identified to be most pronounced in the Pacific Northwest region in the example we studied). However, with concurrent transmission expansion, the impacts of wave energy integration are likely to have a higher geographical spread. Our results also indicate that wave energy may be able to assist power system operations during resilience events such as major transmission contingencies and heat wave events, although such benefits might be dependent on factors such as proximity of affected area to wave resources, availability of adequate resource potential and adequate transmission capacity.

16 TIDAL AND WAVE POWER↗

Economic viability of using thermal energy storage for flexible carbon capture on natural gas power plants

Fossil fuel-based power plants generate 80% of the electricity in the United States and provide a reliable generation source for both base and peak power demands. These plants are expected to adapt to changes in environmental policies that will require carbon management with carbon capture and storage (CCS) representing a possible solution. Current solvent-based CCS has a detrimental impact on a power plant's performance due to large heat loads required for carbon capture solvent regeneration. This parasitic load restricts the power plant's output and operation flexibility. Therefore, this study evaluates the feasibility of using thermal storage technologies for natural gas combined cycle (NGCC) power plants coupled with CCS to minimize the impact of solvent regeneration and enable the plant to operate at peak power output. Thermal storage can minimize the impact of CCS on the power plant by providing the heat load required for solvent regeneration during times of peak demand which will allow the plant to operate unrestricted and at full power. In total, fifteen unique thermal storage configurations were evaluated from three thermal storage categories: Brayton cycle heat pump, vapor compression heat pump, and heat recovery steam generator steam extraction for storage. The viability of these systems was determined by evaluating each configuration on thousands of real-world Locational Marginal Pricing (LMP) profiles from the New York Independent System Operator and California Independent System Operator electricity markets using a techno-economic analysis. Afterwards, results were compared to the performance of a base power plant (NGCC with CCS and no thermal storage) to determine the impact of thermal storage on power plant economics. Overall, six of the thermal storage configurations performed better than base CCS enabled power plant on between 11.5% and 38.7% of the LMP signals evaluated. The best performing configuration was a vapor compression heat pump that used flue gas as the working fluid and had both hot and cold thermal storage units. This configuration performed better than the base CCS power plant on 38.7% of the LMP profiles. The results of this study show thermal storage can mitigate the economic impact of carbon capture solvent regeneration on NGCC power plants. Discussion focuses on the impact of electricity pricing on the optimal thermal storage system, the advantages and disadvantages of the systems evaluated, and identifies limitations with the study.

25 ENERGY STORAGE↗

Analysis of Energy Justice and Equity Impacts from Replacing Peaker Plants with Energy Storage

Transitions to low-carbon energy systems are essential to mitigating and adapting to climate change. Energy storage systems are a key component in achieving a viable decarbonized electric grid. However, decarbonization alone does not guarantee a fairer, more inclusive, or socially just energy system. Energy equity and justice should be integrated in energy system transitions to ensure benefits and burdens are shared equitably. In this paper, we discuss the relationship between energy storage and social equity by assessing the use of energy storage to replace natural gas-fired (NG) peaker plants. Peaker plants are disproportionately located near disadvantaged communities and tend to be older and high emitters of health-affecting fine particulate matter and other pollutants. This paper investigates the equity implications of NG peaker plant replacements with battery energy storage in the context of Washington State’s peaker plants to highlight the human-centered values of retiring the plants. The study performed production cost simulations using the latest Western Electric Coordinating Council Anchor Dataset 2030 case and found that total generation cost, locational marginal price, and total annual emissions were reduced with the replacements. These reductions will have equity benefits on local communities including access to clean air, enhanced health outcomes, and energy burden reductions.

Tarekegne, Bethel W.↗