Integrated retail and wholesale power system operation with smart-grid functionality

Our research team is developing an agent-based test bed for the integrated study of retail and wholesale power markets operating over transmission and distribution networks with smart-grid functionality. This test bed seams together two existing test beds, the AMES Wholesale Power Market Test Bed and the GridLAB-D distribution platform. As a first step, we have designed an integrated retail/wholesale market module specifically based on the ERCOT (Texas) energy region, and we are using simplified versions of this module to study potential retail consumer response to real-time-pricing contracts supported by advanced metering. This study reports on the latter work

Optimal Network Utility

ABSTRACT: The problem of scheduling for maximum throughput-utility in a network with random packet arrivals and time varying channel reliability, the network controller assesses the condition of its channels and selects a set of links for transmission. The success of each transmission depends on the collection of links selected and their corresponding reliabilities. The goal is to maximize a concave, non-decreasing function of the time, average through-put on each link. Such a function represents a utility function that acts as a measure of fairness for the achieved throughput vector

Essays on Energy Portfolio Management

Diese englischsprachige Dissertation behandelt ausgewählte Fragen zum Thema Portfoliomanagement in Energiemärkten. Im Kontext der modernen Portfoliotheorie werden theoretische Verteilungsannahmen untersucht, die einen optimalen Mittelwert-Varianz-Ansatz implizieren. Der Bereich zu Energiemärkten befasst sich einerseits mit Kurzfristprognosen von Day-Ahead-Preisen auf dem Strommarkt. Andererseits werden auf dem Erdgasmarkt die von komplexen Energiederivaten impliziten Volatilitäten analysiert. Einige interessante Beiträge, die diese Dissertation liefert, sind beispielsweise (i) die Erkenntnis, dass sich der Mittelwert-Varianz-Ansatz zur Bestimmung eines optimalen Portfolios von Vermögensgegenständen auch im Falle einer schiefen Renditeverteilung theoretisch rechtfertigen lässt, (ii) eine umfangreiche Vergleichsstudie mit verschiedenen Ansätzen zur Reduktion der Komplexität von multivariaten Strompreisprognosen und (iii) die Entwicklung eines theoretischen Rahmens und effizienten Algorithmus zur Übersetzung von Preisen für Swing-Optionen in implizite Volatilitäten

A study of bilateral contracts in a deregulated power system network

One of the main objectives of deregulating the electric power industry is to introduce competition in the electricity business and prevent monopolies. The introduction of deregulation has, however, led to confusions in the areas of transmission network loss sharing and the responsibility of generation of reactive power. Because, under deregulation, the business and economic decisions in a power system are made by each individual vendor/utility in a decentralized manner. Each power producing entity operates on the principle of profit maximization by optimizing its production cost of real power, reactive power and the spinning reserve margin. Two methods have been developed to determine a generator's share of transmission loss in a deregulated power system. They are: the Incremental Load Flow Approach (ILFA) and the Marginal Transmission Loss Approach (MTLA). The ILFA employs an iterative load flow technique. The MTLA finds the transmission loss share of a generator by utilizing the marginal rate of transmission loss. Both methods are very straightforward and can be implemented by an electric utility or an Independent System Operator (ISO) with little difficulty. Results obtained from both approaches agree well. The details of the two methods along with some numerical examples have been presented in this thesis. The profit maximization objectives of any generating entity or an IPP not only depends on transmission loss allocation but also on the production levels of real power, reactive power and spinning reserve. A model for profit maximization by a generating entity or an IPP who is interested to sell both real and reactive power is developed and presented in this thesis. In many jurisdictions, a power producer has the option for selling spinning reserve in addition to real and reactive power. A profit maximization model based on the forecasted market price of real power, reactive power and spinning reserve has been developed and presented in this thesis. The model would help a producer to decide the production levels of these three commodities in order to realize the maximum profit. Zero profit conditions have been considered along with the profit maximization model to determine the minimum acceptable price vectors of these three commodities. A small test network and the IEEE 24-Bus Reliability Test System (RTS) have been utilized to conduct studies and illustrate the concepts with numerical examples

Improving the resilience of cyber-physical systems under strategic adversaries

Renewable energy resources challenge traditional energy system operations by substituting the stability and predictability of fossil fuel based generation with the unreliability and uncertainty of wind and solar power. Rising demand for green energy drives grid operators to integrate sensors, smart meters, and distributed control to compensate for this uncertainty and improve the operational efficiency of the grid. Real-time negotiations enable producers and consumers to adjust power loads during shortage periods, such as an unexpected outage or weather event, and to adapt to time-varying energy needs. While such systems improve grid performance, practical implementation challenges can derail the operation of these distributed cyber-physical systems. Network disruptions introduce instability into control feedback systems, and strategic adversaries can manipulate power markets for financial gain. This dissertation analyzes the impact of these outages and adversaries on cyber-physical systems and provides methods for improving resilience, with an emphasis on distributed energy systems. First, a financial model of an interdependent energy market lays the groundwork for profit-oriented attacks and defenses, and a game theoretic strategy optimizes attack plans and defensive investments in energy systems with multiple independent actors. Then attacks and defenses are translated from a theoretical context to a real-time energy market via denial of service (DoS) outages and moving target defenses. Analysis on two market mechanisms shows how adversaries can disrupt market operation, destabilize negotiations, and extract profits by attacking network links and disrupting communication. Finally, a low-cost DoS defense technique demonstrates a method that energy systems may use to defend against attacks

Impact of optimally placed VAR support on electricity spot pricing

In view of deregulation and privatization processes, electricity pricing becomes one of the most important issues. The increases in power flows and environmental constraints are forcing electricity utilities to install new VAR equipment to enhance network operation. In this thesis a nonlinear multi-objective optimization problem has been formulated to maximize both social welfare and the maximum distance to collapse point in an open power market using reactive support like Static Var Compensator (SVC). The production and consumption costs of reactive power are intended to provide proper market signals to the electricity market agents. They are included in the multi-objective Optimal Power Flow (OPF) coupled with an (N-1) contingency criterion which is based on power flow sensitivity analysis.;Considering the cost associated with the investment of VAR support, placing them at the optimal location in the network is an important issue. An index to find the optimal site for VAR support considering various technical and economical parameters based on Cost Benefit Analysis (CBA) is proposed. The weights for these parameters are computed through an Analytic Hierarchy Process (AHP). A new approach of transmission pricing calculation taking VSC-OPF based multi-objective maximization as the objective and studied the impact of SVC on it. The integrated approach is illustrated on a 6-bus and a standard IEEE 14-bus test systems and shows promising results

Utility 2.0: A multi-dimensional review of New York’s Reforming the Energy Vision (REV) and Great Britain’s RIIO utility business models

A powerful confluence of architectural, technological, and socio-economic forces is transforming the U.S. electricity market. These trends and developments are placing tremendous pressure on utilities triggering changes in electricity production, transmission, and consumption. Increased democratized choice over energy usage, for instance, is empowering consumers to take key actions such as peak shaving, flexible loading, and installation of grid automation and intelligence solutions. A key step to achieving full benefits of these programs is repurposed Utility 2.0 concepts: the distributed grid, innovations in electric market design, real-time automated monitoring and verification, deployment of microgrids, increased uptake of ‘smart meters and smarter’ grids, and investment in data analytics in order to incentivize efficient market design and flexibility. Using a seven-part multi-dimensional framework, this paper examines the role of infrastructure network, revenue models, customer interface, business model resilience, organizational logic and mandate, risk management, and value proposition in improving communication with consumers and operational boundary of utilities in the new utility business model regime. The paper also assesses two prominent utility business models, the New York’s Reforming the Energy Vision (REV) and Great Britain’s ‘Revenue = Incentives + Innovation + Outputs” (RIIO) legislation in order to illustrate potential changes that await the energy utility actors. We conclude that positioning the ‘business model’ as the unit for analysis provides a robust and multi-dimensional tool for evaluating the suitability of new proposals for electric utilities and energy governance