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1. A Data-Driven Study to Discover, Characterize, and Classify Convergence Bidding Strategies in California ISO Energy Market

   https://doi.org/10.1109/ISGT49243.2021.9372191  

   Samani, Ehsan ; Mohsenian-Rad, Hamed ( February 2021 , IEEE Power & Energy Society Innovative Smart Grid Technologies Conference (ISGT))

   null (Ed.)

   Convergence bidding, has been adopted in recent years by most Independent System Operators (ISOs) in the United States as a relatively new market mechanism to enhance market efficiency. Convergence bidding affects many aspects of the operation of the electricity markets and there is currently a gap in the literature on understanding how the market participants strategically select their convergence bids in practice. To address this open Problem, in this paper, we study three years of real-world market data from the California ISO energy market. First, we provide a data - driven overview of all submitted convergence bids (CBs) and analyze the performance of each individual convergence bidder based on the number of their submitted CBs, the number of locations that they placed the CBs, the percentage of submitted supply or demand and CBs, the amount of cleared CBs, and their gained profit or loss. Next, we scrutinize the bidding strategies of the 13 largest market players that account for 75 % of all CBs in. the California ISO market. We identify quantitative features to characterize and distinguish their different convergence bidding strategies. This analysis results in revealing three different classes of CB strategies that are used in practice. We identify the differences between. these strategic bidding classes and compare their advantages and disadvantages. We also explain how some of the most active market participants are using bidding strategies that do not any of the strategic bidding methods that currently exist in the literature. 

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2. A Pool Strategy of Microgrid in Power Distribution Electricity Market

   https://doi.org/10.1109/TPWRS.2019.2916144  

   Wu, Yiwei ; Barati, Masoud ; Lim, Gino ( June 2019 , IEEE Transactions on Power Systems)

   This paper discusses a market-based pool strategy for a microgrid (MG) to optimally trade electric power in the distribution electricity market (DEM). The increasing penetration levels of distributed energy resources (DERs) and MGs in distribution system (DS) stress distribution system operator (DSO) and require higher levels of coordinated control strategies. The distribution system operator has limited visibility and control over such distributed resources. To reduce the complexity of the system and improve the efficiency of the electricity market operation, we propose a decentralized pool strategy for an MG to integrate with a distribution system through a market mechanism. A market-based interactions procedure between MGs and DS is developed for MGs as price-makers to find an optimal bidding/offering strategy efficiently. To achieve a market equilibrium among all entities, we initially cast this problem as a bi-level programming problem, in which the upper level is an MG optimal scheduling problem and the lower level presents a DEM clearing mechanism. The proposed bi-level model is converted to a single mix-integer model which is easier to solve. Uncertainties associated with MG's rivals' offers and demands' bids are considered in this problem. The solution results from a modified IEEE 33-Bus distribution system are presented and discussed. Finally, some conclusions are drawn and examined. 

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3. Equilibrium analysis of electricity markets with day-ahead market power mitigation and real-time intercept bidding

   https://doi.org/10.1145/3538637.3538839  

   Bansal, Rajni Kant ; Chen, Yue ; You, Pengcheng ; Mallada, Enrique ( June 2022 , Proceedings of the Thirteenth ACM International Conference on Future Energy Systems (e-Energy))

   Electricity markets are cleared by a two-stage, sequential process consisting of a forward (day-ahead) market and a spot (real-time) market. While their design goal is to achieve efficiency, the lack of sufficient competition introduces many opportunities for price manipulation. To discourage this phenomenon, some Independent System Operators (ISOs) mandate generators to submit (approximately) truthful bids in the day-ahead market. However, without fully accounting for all participants' incentives (generators and loads), the application of such a mandate may lead to unintended consequences. In this paper, we model and study the interactions of generators and inelastic loads in a two-stage settlement where generators are required to bid truthfully in the day-ahead market. We show that such mandate, when accounting for generator and load incentives, leads to a {generalized} Stackelberg-Nash game where load decisions (leaders) are performed in day-ahead market and generator decisions (followers) are relegated to the real-time market. Furthermore, the use of conventional supply function bidding for generators in real-time, does not guarantee the existence of a Nash equilibrium. This motivates the use of intercept bidding, as an alternative bidding mechanism for generators in the real-time market. An equilibrium analysis in this setting, leads to a closed-form solution that unveils several insights. Particularly, it shows that, unlike standard two-stage markets, loads are the winners of the competition in the sense that their aggregate payments are less than that of the competitive equilibrium. Moreover, heterogeneity in generators cost has the unintended effect of mitigating loads market power. Numerical studies validate and further illustrate these insights. 

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4. Pricing flexibility of shiftable demand in electricity markets

   https://doi.org/10.1145/3447555.3464847  

   Werner, Lucien ; Wierman, Adam ; Low, Steven H. ( June 2021 , ACM International Conference on Future Energy Systems)

   Enabling participation of demand-side flexibility in electricity markets is key to improving power system resilience and increasing the penetration of renewable generation. In this work we are motivated by the curtailment of near-zero-marginal-cost renewable resources during periods of oversupply, a particularly important cause of inefficient generation dispatch. Focusing on shiftable load in a multi-interval economic dispatch setting, we show that incompatible incentives arise for loads in the standard market formulation. While the system's overall efficiency increases from dispatching flexible demand, the overall welfare of loads can decrease as a result of higher spot prices. We propose a market design to address this incentive issue. Specifically, by imposing a small number of additional constraints on the economic dispatch problem, we obtain a mechanism that guarantees individual rationality for all market participants while simultaneously obtaining a more efficient dispatch. Our formulation leads to a natural definition of a uniform, time-varying flexibility price that is paid to loads to incentivize flexible bidding. We provide theoretical guarantees and empirically validate our model with simulations on real-world generation data from California Independent System Operator (CAISO). 

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5. Uncertainty Cost of Stochastic Producers: Metrics and Impacts on Power Grid Flexibility

   https://doi.org/10.1109/TEM.2020.2970729  

   Pourahmadi, F. ; Hosseini, S.H. ; Dehghanian, P. ; Shittu, E. ; Fotuhi-Firuzabad, M. ( February 2021 , IEEE transactions on engineering management)

   null (Ed.)

   The widespread presence of contingent generation, when coupled with the resulting volatility of the chronological net-load (i.e., the difference between stochastic generation and uncertain load) in today's modern electricity markets, engender the significant operational risks of an uncertain sufficiency of flexible energy capacity. In this article, we address several operational flexibility concerns that originate from the increase in generation variability captured within a security-constrained unit commitment (SCUC) formulation in smart grids. To quantitatively assess the power grid operational flexibility capacity, we first introduce two reference operation strategies based on a two-stage robust SCUC, one through a fixed and the other via an adjustable uncertainty set, for which the state-of-the-art techniques may not be always feasible, efficient, and practical. To address these concerns and to account for the effects of the uncertainty cost resulting from dispatch limitations of flexible resources, a new framework centered on the adjustable penetration of stochastic generation is proposed. Our hypothesis is that if the SCUC is scheduled with an appropriate dispatch level of stochastic generation, the system uncertainty cost will decrease, and subsequently, the system's ability to accommodate additional uncertainty will improve. Numerical simulations on a modified IEEE 73-bus test system verify the efficiency of the suggested assessment techniques. 

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