skip to main content

Title: Coordinating Distribution System Resources for Co-optimized Participation in Energy and Ancillary Service Transmission System Markets
his work investigates the potential of using aggregate controllable loads and energy storage systems from multiple heterogeneous feeders to jointly optimize a utility's energy procurement cost from the real-time market and their revenue from ancillary service markets. Toward this, we formulate an optimization problem that co-optimizes real-time and energy reserve markets based on real-time and ancillary service market prices, along with available solar power, storage and demand data from each of the feeders within a single distribution network. The optimization, which includes all network system constraints, provides real/reactive power and energy storage set-points for each feeder as well as a schedule for the aggregate system's participation in the two types of markets. We evaluate the performance of our algorithm using several trace-driven simulations based on a real-world circuit of a New Jersey utility. The results demonstrate that active participation through controllable loads and storage significantly reduces the utility's net costs, i.e., real-time energy procurement costs minus ancillary market revenues.
Authors:
; ; ;
Award ID(s):
1711188 1752362
Publication Date:
NSF-PAR ID:
10106062
Journal Name:
American Control Conference
Page Range or eLocation-ID:
1315 to 1322
Sponsoring Org:
National Science Foundation
More Like this
  1. This paper presents one of the first real-life demonstrations of coordinated and distributed resource control for secondary frequency response in a power distribution grid. A series of tests involved up to 69 heterogeneous active distributed energy resources consisting of air handling units, unidirectional and bidirectional electric vehicle charging stations, a battery energy storage system, and 107 passive distributed energy resources consisting of building loads and solar photovoltaic systems. The distributed control setup consists of a set of Raspberry Pi end-points exchanging messages via an ethernet switch. Actuation commands for the distributed energy resources are obtained by solving a power allocation problem at every regulation instant using distributed ratio-consensus, primal-dual, and Newton-like algorithms. The problem formulation minimizes the sum of distributed energy resource costs while tracking the aggregate setpoint provided by the system operator. We demonstrate accurate and fast real-time distributed computation of the optimization solution and effective tracking of the regulation signal over 40 min time horizons. An economic benefit analysis confirms eligibility to participate in an ancillary services market and demonstrates up to $53k of potential annual revenue for the selected population of distributed energy resources.
  2. Electricity bill constitutes a significant portion of operational costs for large scale data centers. Empowering data centers with on-site storages can reduce the electricity bill by shaping the energy procurement from deregulated electricity markets with real-time price fluctuations. This work focuses on designing energy procurement and storage management strategies to minimize the electricity bill of storage-assisted data centers. Designing such strategies is challenging since the net energy demand of the data center and electricity market prices are not known in advance, and the underlying problem is coupled over time due to evolution of the storage level. Using competitive ratio as the performance measure, we propose an online algorithm that determines the energy procurement and storage management strategies using a threshold based policy. Our algorithm achieves the optimal competitive ratio of as a function of the price fluctuation ratio. We validate the algorithm using data traces from electricity markets and data-center energy demands. The results show that our algorithm achieves close to the offline optimal performance and outperforms existing alternatives.%
  3. Power grids are evolving at an unprecedented pace due to the rapid growth of distributed energy resources (DER) in communities. These resources are very different from traditional power sources as they are located closer to loads and thus can significantly reduce transmission losses and carbon emissions. However, their intermittent and variable nature often results in spikes in the overall demand on distribution system operators (DSO). To manage these challenges, there has been a surge of interest in building decentralized control schemes, where a pool of DERs combined with energy storage devices can exchange energy locally to smooth fluctuations in net demand. Building a decentralized market for transactive microgrids is challenging because even though a decentralized system provides resilience, it also must satisfy requirements like privacy, efficiency, safety, and security, which are often in conflict with each other. As such, existing implementations of decentralized markets often focus on resilience and safety but compromise on privacy. In this paper, we describe our platform, called TRANSAX, which enables participants to trade in an energy futures market, which improves efficiency by finding feasible matches for energy trades, enabling DSOs to plan their energy needs better. TRANSAX provides privacy to participants by anonymizing their tradingmore »activity using a distributed mixing service, while also enforcing constraints that limit trading activity based on safety requirements, such as keeping planned energy flow below line capacity. We show that TRANSAX can satisfy the seemingly conflicting requirements of efficiency, safety, and privacy. We also provide an analysis of how much trading efficiency is lost. Trading efficiency is improved through the problem formulation which accounts for temporal flexibility, and system efficiency is improved using a hybrid-solver architecture. Finally, we describe a testbed to run experiments and demonstrate its performance using simulation results.« less
  4. This paper proposes a market mechanism for multi-interval electricity markets with generator and storage participants. Drawing ideas from supply function bidding, we introduce a novel bid structure for storage participation that allows storage units to communicate their cost to the market using energy cycling functions that map prices to cycle depths. The resulting market-clearing process--implemented via convex programming--yields corresponding schedules and payments based on traditional energy prices for power supply and per-cycle prices for storage utilization. We illustrate the benefits of our solution by comparing the competitive equilibrium of the resulting mechanism to that of an alternative solution that uses prosumer-based bids. Our solution shows several advantages over the prosumer-based approach. It does not require a priori price estimation. It also incentivizes participants to reveal their truthful costs, thus leading to an efficient, competitive equilibrium. Numerical experiments using New York Independent System Operator (NYISO) data validate our findings.
  5. Uwe Sauer, Dirk (Ed.)
    A B S T R A C T The probabilistic and intermittent output power of Wind Turbines (WT) is one major inconsistency of these Renewable Energy Sources (RES). Battery Energy Storage Systems (BESS) are a suitable solution to mitigate this intermittency by smoothening WT’s output power. Although the main benefit of BESSs mentions as peak shaving and load-shifting, but in this research, it will verify that optimal placement and sizing them jointly with WTs can lead to more benefits like compensating the required system’s reactive power support from WTs. The reactive power size of WTs and BESSs will be derived from the result of the joint sizing and placement in this study, as well as their active power output to meet the load demand. This can facilitate WTs and BESSs contribution to cover the system’s required reactive power and their participation in the reactive power market and ancillary services. This paper also proposes new cost functions for both WTs and BESSs and minimizes their cost while ensuring minimal total loss (active and reactive) in the power distribution system. This can benefit both WTs’ and BESSs’ owners as well as system operators. Suitable placement and sizing of the WTs and BESSsmore »can also improve the load bus voltage profiles, which can benefit the end-users, and will verify using the proposed optimization by different case studies on the 33 bus distribution system. The results of case studies ascertain the consistency of the proposed formulation for placement and sizing BESSs and WTs jointly, as well as other benefits to the power system, the power plant owners, and system operators.« less