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At least 19 records

Clustering representative days for power systems generation expansion planning: Capturing the effects of variable renewables and energy storage

Decision makers rely on models to make important regulatory, policy, and investment decisions. For power systems, these models must capture (i) the future challenges introduced by the integration of large quantities of variable renewable energy sources and (ii) the role that energy storage technologies should play. In this paper, we explore several different approaches to selecting representative days for generation expansion planning models, focusing on capturing these dynamics. Further, we propose a new methodology for adjusting the outputs of clustering algorithms that provides three advantages: the targeted level of net demand is captured, the underlying net demand shapes that define ramping challenges are accurately represented, and the relationship between annual energy and peak demand is captured. This weighting methodology reduces the magnitude of the error in the representative day based generation expansion planning models estimation of costs by 61% on average. The results also demonstrate the importance of carefully performing the clustering of representative days for both system costs and technology mix. In most cases improvements to the total cost of different representative day based expansion plans are realised where conventional generation capacity is substituted for energy storage. Based on the energy storage technology selected we conclude this capacity is being used to address ramping challenges as opposed to shifting renewable generation from off to on peak periods, reinforcing the importance of capturing detailed intraday dynamics in the representative day selection process.

Clustering↗

IDAES Enterprise: Generation Expansion Planning with Enhanced Requirements for Capacity Adequacy Under Renewable Intermittency

Achieving net zero carbon emissions likely requires future power systems to integrate new, flexible energy technologies to accommodate higher levels of capacity from variable renewable energy sources. To determine the optimal deployment of new electricity capacity and to study the likelihood of deployments of new energy technologies, an expansion planning model has been developed as part of the IDAES-Enterprise suite of grid models. The Generation Expansion Planning (GEP) model is a multi-period model in which investment decisions occur yearly, and a Unit Commitment (UC) problem is examined on an hourly timescale. To reduce computational complexity of the GEP model, the UC problem is solved for average “representative days” which leaves out extreme, but relatively common, scenarios in which low renewable generation occurs, leaving the system with inadequacy in capacity. The IDAES-Enterprise GEP model has been modified to include these extreme scenarios while keeping the model reasonably tractable. Specifically, a lazy constraint technique was implemented to check for capacity adequacy on an hourly basis over a large data set of aligned load-wind-solar profiles. As a vast majority of the capacity constraints will not be violated, the technique lowers computational expense by searching for violated capacity constraints over an “iterative manner,” adding those infeasible constraints back into the model. Results on a test case of the Southwest Power Pool shows that the lazy constraint technique significantly reduces retirements and increases installments of natural gas combined cycles and flexible natural gas units. It also reduces some retirements of coal units. These modifications provide a more reasonable estimation of required dispatchable power generation capacity to ensure feasibility during peak net load.

Liu, Peng↗

High temporal resolution generation expansion planning for the clean energy transition

As power systems integrate increasing quantities of wind, solar and energy storage resources, it is important to revisit power system capacity expansion modeling methods and assumptions that have been utilized in thermal- dominated systems. We conduct a series of case study analyses using a simplified representation of the Electric Reliability Council of Texas (ERCOT) system to demonstrate how least-cost capacity expansion outcomes are impacted by changes in model resolution across two temporal dimensions: 1) the number of considered representative periods, and 2) the system dispatch interval. First, we find that the least-cost generation portfolio can differ significantly for small changes in the number of representative days, but largely converges to the 365-day result once 104 representative days are considered. Furthermore, systems with wind, solar and storage resources were more sensitive to changes in the number of representative days than a thermal-dominated system. Second, we find that considering five-minute dispatch resolution consistently results in least-cost generation portfolios with less solar capacity and more energy storage capacity than corresponding scenarios with hourly dispatch intervals. This suggests that hourly dispatch representation fails to capture the intra-hour volatility of solar generation, and therefore also overlooks opportunities for storage resources to provide system value by balancing this volatility. Collectively these results indicate that capacity expansion modelers should revisit conventional approaches to temporal representation when conducting analyses of deeply decarbonized power systems to ensure that such analyses are robust and actionable. To our knowledge, this is the first study to analyze capacity expansion outcomes with five-minute dispatch resolution in this manner.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

The impact of market design and clean energy incentives on strategic generation investments and resource adequacy in low-carbon electricity markets

Well-designed electricity markets play a crucial role in maintaining reliable electric power systems, which are critical in modern society. Here, this study examines the impact of different electricity market designs and clean energy incentive schemes on supporting renewable energy integration and achieving clean energy goals. To this end, we utilize a game-theoretical generation expansion planning model where generation companies make investment and retirement decisions to maximize their expected profit. The model is structured as an equilibrium problem with equilibrium constraints (EPEC) and solved using a diagonalization approach combined with progressive hedging. We analyze three types of electricity market designs: an energy-only market, a capacity market, and a clean energy market, and consider a wide range of market parameters resulting in 14 total scenarios. Wind and solar capacity comprise the majority of new investments in all considered scenarios, but the resultant system planning reserve margin (PRM) can differ significantly depending on market parameters. We also find that profit-driven investments lead to lower PRMs than a traditional system cost minimization approach. These individual scenario results further demonstrate how different market designs and clean energy incentive schemes may influence investor decision-making and impact resource adequacy throughout the clean energy transition.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

IDAES GTEP 0.1 Release

The Institute for the Design of Advanced Energy Systems (IDAES) Generation and Transmission Expansion Planning (GTEP) package provides a Pyomo-based implementation of a modular, flexible, Generalized Disjunctive Programming (GDP) formulation for power infrastructure planning problems. This package is designed with the following goals in mind: - Abstract GTEP modeling away from any particular case study or fixed modeling assumptions (e.g., technologies, temporal resolution, spatial resolution, policy implications, etc.) - Admit flexible decision sets and heterogeneous parameterization - Allow high-level modeling options to be understood easily, chosen modularly, and changed rapidly

AS↗

Recent advances and challenges in optimization models for expansion planning of power systems and reliability optimization

Optimization models for expansion planning of power systems aim to determine capacities, investment timing, and location of power systems to satisfy the power demands while minimizing the total cost. The models have become complex in recent years to reflect both regulations on conventional energy sources and the increasing penetration of renewable energy sources (RES). This paper reviews the basic concepts and optimization models for expansion planning of power systems. We first explain the definition and features of generation expansion planning (GEP), transmission expansion planning (TEP), and generation and transmission expansion planning (GTEP). To address the computational challenges of large-scale expansion planning problems, we review several simplifications including temporal and spatial aggregation, and decomposition methods. This paper also addresses power system reliability defined as the probability of satisfying the load demand while withstanding failures of components. Finally, the goal of this paper is to provide a research overview, discuss trends in expansion planning of power systems, and suggest directions for future research.

37 INORGANIC, ORGANIC, PHYSICAL, AND ANALYTICAL CH↗

Assessing the benefits of capacity payment, feed‐in‐tariff and time‐of‐use programme on long‐term renewable energy sources integration

Recently, demand response programmes (DRPs) have captured great attention in electric power systems. DRPs such as time‐of‐use (ToU) programme can be efficiently employed in the power system planning to reform the long‐term behaviour of the load demands. The composite generation expansion planning (GEP) and transmission expansion planning (TEP) known as composite GEP–TEP is of high significance in power systems to meet the future load demand of the system and also integrate renewable energy sources (RESs). In this regard, this study presents a dynamic optimisation framework for the composite GEP–TEP problem taking into consideration the ToU programme and also, the incentive‐based and supportive programmes. Accordingly, the performances of the capacity payment and feed‐in tariff mechanisms and the ToU programme in integrating RESs and reducing the total cost have been evaluated in this study. The problem has been formulated and solved as a standard two‐stage mixed‐integer linear programming model aimed at minimising the total costs. In this model, the ToU programme is applied and the results are fed into the expansion planning problem as the input. The proposed framework is simulated on the IEEE Reliability Test System to verify the effectiveness of the model and discuss the results obtained from implementing the mentioned mechanisms to support the RESs integration.

Javadi, Mohammad Sadegh↗

Disjunctive optimization model and algorithm for long-term capacity expansion planning of reliable power generation systems

This paper proposes a new optimization model and algorithm for long-term capacity expansion planning of reliable power generation systems. The model optimizes both investment decisions (e.g., size, location, and time to install, retire and decommission facilities) and operation decisions (e.g., on/off status, operating capacity, and expected power output). It is also able to optimize reserve systems (or backup systems), as well as the main systems, to improve power systems reliability. An impact of operational strategies of generators (i.e., participating in electricity production vs. remaining as idle units during operation) on power systems reliability is considered. Probability of equipment failures and capacity failure states are used to rigorously estimate the power systems reliability depending on design and operation strategies. The optimization model is formulated with Generalized Disjunctive Programming (GDP), which is reformulated as a mixed-integer linear programming (MILP) model using the Hull relaxation. Two reliability-related penalties, such as downtime penalty and unmet demand penalty, are included in the objective function to maximize reliability while minimizing the total net present cost. Furthermore, a bilevel decomposition with tailored cuts is developed to reduce computational times of the multi-scale optimization model. The effectiveness of the proposed model is shown by comparing the results with the results obtained from the expansion planning models that do not explicitly consider reliability. In conclusion, we also show that the proposed bilevel decomposition is computationally efficient for solving large scale problems through 5-years and 10-years planning case studies.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Method for Spatiotemporal Solar Power Profile Estimation for a Proposed U.S.–Caribbean–South America Super Grid under Hurricanes

Solar photovoltaic (PV) generation technology stands out as a scalable and cost-effective solution to enable the transition toward decarbonization. However, PV solar output, beyond the daily solar irradiance variability and unavailability during nights, is very sensitive to weather events like hurricanes. Hurricanes nucleate massive amounts of clouds around their centers, shading hundreds of kilometers in their path, reducing PV power output. This research proposes a spatiotemporal method, implemented in MATLAB R2023b coding, to estimate the shading effect of hurricanes over a wide distribution of PV solar plants connected to a high-voltage power infrastructure called the U.S.–Caribbean–South America super grid. The complete interconnection of the U.S., the Caribbean, and South America results in the lowest power valley levels, i.e., an overall percentual reduction in PV power output caused by hurricane shading. The simulations assess the impact of hurricanes in 10 synthetic trajectories spanning from Texas to Florida. The Caribbean would also experience lower power valleys with expanded interconnectivity schemes. The U.S.–Caribbean–South America super grid reduces Caribbean variability from 37.8% to 8.9% in the case study. The proposed spatiotemporal method for PV power profile estimation is a valuable tool for future solar power generation expansion, transmission planning, and system design considering the impact of hurricanes.

14 SOLAR ENERGY↗

The Effect of Clean Energy Generation Targets on the Portfolio of Electric Grid Generation Technologies

A least-cost generation and transmission expansion planning model is used to optimize the U.S. generation portfolio in 2030 under a range of Clean Energy Generation Target (CEGT) policy goals. As reference cases for comparison, the model is used to optimize the generation portfolio for the future electric grid with and without the Investment and Production Tax Credits (ITC and PTC). Next, the model is used to optimize the generation portfolio with a CEGT ranging from 10% to 70%. The results show that due to the ITC and PTC extensions by the 2022 Inflation Reduction Act, there is little additional investment in renewable energy generation assets at low CEGT levels. Significant additional installations of both renewable energy generation and energy storage systems – both batteries and pumped storage hydro – become important at CEGT levels above approximately 30%.

Aldeman, Matthew↗

Climate Influences on Capacity Expansion Planning with Application to the Western U.S

Electric power system planners utilize a variety of planning tools to inform decisions concerning generation and transmission additions to the electric grid, the need for operational changes, and to evaluate potential stressors on the system. Numerous factors contribute to the planning process including projected fuel and technology costs, policy and load profiles. There is also a growing recognition of the interdependency of the electric grid with other natural and engineered systems. Here we explore how future climate change and hydropower operability might influence decisions related to electricity capacity expansion planning and operations. To do so we assemble a multi-model framework. Specifically, water resource modeling is used to simulate climate impacts on future water supply for thermoelectric and hydropower generation. Separately, temperature impacts on electricity load are evaluated. Together, these climate factors spatially constrain a capacity expansion model that projects generation and transmission additions to the grid. The projected new capacity-builds are then evaluated on their operations, reliability, and cost under average and extreme climate conditions using production cost modeling. This coupled framework is demonstrated on the electric grid in the Western U.S., supporting capacity expansion planning by WECC, the North American Electric Reliability Corporation (NERC) regional entity responsible for reliability assurance of the Western Interconnection. This region was selected in part because the West is unique in that it has high potential for renewable penetrations and is experiencing large retirements/displacements of baseload resources, primarily coal, leading to possible operational challenges in terms of changing resource mix and the need for resource flexibility. Toward this challenge, planning scenarios encompass a range of alternative energy, climate and drought futures. In this context we explore answers to two strategic questions: 1) How does changing climate influence electricity expansion planning (generation and transmission) and future operations, including type and capacity of new builds, system reliability, cost and environmental impacts? 2) How does the representation of hydropower in the modeling framework influence the evaluation of bulk power system operations? Results indicate that climate has a measurable influence on recommendations concerning the capacity, type and location of new generation and transmission additions, with up to 17 GW additional capacity needed by 2038 to meet peak loads (~6.6% increase over capacity-builds based on historical climate). The extent of additional infrastructure needs is strongly influenced by future water availability for hydropower and the potential deployment of demand response technologies. Systems designed for future climate conditions were found to maintain high system reliability under a range of electricity and water availability scenarios (including significant drought), with minimal system curtailments. Additional capacity needs due to higher load tend to increase cumulative 20-year investment and operating costs by $\$$5-$\$$17 billion and generation costs increase by 9 to 19%. Finally, changing the representation of hydropower flexibility has a relatively small influence on capacity expansion in the Western Interconnection through 2038, but hydropower flexibility impacts generation costs to a similar extent as climate.

13 HYDRO ENERGY↗

Parallel computing for power system climate resiliency: Solving a large-scale stochastic capacity expansion problem with mpi-sppy

Here we propose a nodal stochastic generation and transmission expansion planning model that incorporates the output from high-resolution global climate models through load and generation availability scenarios. We implement our model in Pyomo and perform computational studies on a realistically-sized test case of the California electric grid in a high performance computing environment. We propose model reformulations and algorithm tuning to efficiently solve this large problem using a variant of the Progressive Hedging Algorithm. We utilize the parallelization capabilities and overall versatility of mpi-sppy, exploiting its hub-and-spoke architecture to concurrently obtain inner and outer bounds on an optimal expansion plan. Initial results show that instances with 360 representative days on a system with over 8,000 buses can be solved to within 5% of optimality in under 4 h of wall clock time, a first step towards solving a large-scale power system expansion planning problem across a wide range of climate-informed operational scenarios.

24 POWER TRANSMISSION AND DISTRIBUTION↗

The long-term impacts of carbon and variable renewable energy policies on electricity markets

We present a computationally-efficient optimization model that finds the least-cost generation unit expansion, commitment, and dispatch plan to serve hourly electricity demand and ancillary service requirements. We apply the model to a case study based on data from the electricity market in Texas (ERCOT) to analyze the market and investment impacts of several incentive mechanisms that support variable renewable energy (VRE) investments and carbon emission reductions. In contrast to many previous studies, the model determines least-cost VRE investments under different cost and incentive assumptions rather than analyzing scenarios where VRE expansion is pre-determined. We find that electricity prices can vary significantly under different incentive mechanisms, even when comparable generation portfolios result. Therefore, the preferred incentive mechanism depends on stakeholder objectives as well as the prevailing electricity market framework. Our results indicate that a carbon tax is more system cost-efficient for reducing emissions, while production and investment tax credits are more system cost-efficient for increasing VRE investments. Similarly, incentive mechanisms that reduce electricity prices may increase the need for separate revenue sufficiency mechanisms (e.g. a capacity market) more than a policy that increases electricity prices. Moreover, the impacts on consumer payments are not always aligned with changes in system costs. Overall, the analysis illustrates the importance of considering electricity market impacts in assessing the economic efficiency of VRE and carbon incentive mechanisms.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Framework for optimization of long-term, multi-period investment planning of integrated urban energy systems

In order to achieve stringent greenhouse gas emission reductions, a transition of our entire energy system from fossil to renewable resources needs to be designed. Such an energy transition brings two main challenges: most renewables generate variable electric energy, yet most demand is currently not electric (carrier mismatch) and does not always manifest at the same time as supply (temporal mismatch). Integrating multiple energy infrastructures can address both challenges by using the synergy between different energy carriers; building on existing infrastructure, while allowing a robust and flexible integration of the new. This paper proposes an optimization framework for long-term, multi-period investment planning of urban energy systems in an integrated manner. We formulate it as a mixed-integer linear program, combining a capacitated facility location with a multi-dimensional, capacitated network design problem. It includes generation and network expansion planning as well as interconnections between networks and storage infrastructure for each energy system. It can incorporate pathway effects like techno-economic developments, policy measures, and weather variations. The intended use is to support urban decision makers with long-term investment planning, though it can be tailored to fit other geographical or temporal scales. We demonstrate the model using two cases based on an average city in The Netherlands, which wants to reduce its CO 2 -emissions with 95% by 2050. In the first case, we include explicit carbon-emission constraints to study the effects of the carrier mismatch. In the second case, we implement interannual weather variations to analyze the temporal mismatch. The results give valuable insights into the energy transition design strategy for urban decision makers. They also show the future potential, as well as the computational challenges of the optimization framework.

24 POWER TRANSMISSION AND DISTRIBUTION↗