Applications of Probabilistic Forecasting in Smart Grids : A Review

This paper reviews the recent studies and works dealing with probabilistic forecasting models and their applications in smart grids. According to these studies, this paper tries to introduce a roadmap towards decision-making under uncertainty in a smart grid environment. In this way, it firstly discusses the common methods employed to predict the distribution of variables. Then, it reviews how the recent literature used these forecasting methods and for which uncertain parameters they wanted to obtain distributions. Unlike the existing reviews, this paper assesses several uncertain parameters for which probabilistic forecasting models have been developed. In the next stage, this paper provides an overview related to scenario generation of uncertain parameters using their distributions and how these scenarios are adopted for optimal decision-making. In this regard, this paper discusses three types of optimization problems aiming to capture uncertainties and reviews the related papers. Finally, we propose some future applications of probabilistic forecasting based on the flexibility challenges of power systems in the near future.© 2022 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (https://creativecommons.org/licenses/by/4.0/).fi=vertaisarvioitu|en=peerReviewed

Building and investigating generators' bidding strategies in an electricity market

In a deregulated electricity market environment, Generation Companies (GENCOs) compete with each other in the market through spot energy trading, bilateral contracts and other financial instruments. For a GENCO, risk management is among the most important tasks. At the same time, how to maximise its profit in the electricity market is the primary objective of its operations and strategic planning. Therefore, to achieve the best risk-return trade-off, a GENCO needs to determine how to allocate its assets. This problem is also called portfolio optimization. This dissertation presents advanced techniques for generator strategic bidding, portfolio optimization, risk assessment, and a framework for system adequacy optimisation and control in an electricity market environment. Most of the generator bidding related problems can be regarded as complex optimisation problems. In this dissertation, detailed discussions of optimisation methods are given and a number of approaches are proposed based on heuristic global optimisation algorithms for optimisation purposes. The increased level of uncertainty in an electricity market can result in higher risk for market participants, especially GENCOs, and contribute significantly to the drivers for appropriate bidding and risk management tasks for GENCOs in the market. Accordingly, how to build an optimal bidding strategy considering market uncertainty is a fundamental task for GENCOs. A framework of optimal bidding strategy is developed out of this research. To further enhance the effectiveness of the optimal bidding framework; a Support Vector Machine (SVM) based method is developed to handle the incomplete information of other generators in the market, and therefore form a reliable basis for a particular GENCO to build an optimal bidding strategy. A portfolio optimisation model is proposed to maximise the return and minimise the risk of a GENCO by optimally allocating the GENCO's assets among different markets, namely spot market and financial market. A new market pnce forecasting framework is given In this dissertation as an indispensable part of the overall research topic. It further enhances the bidding and portfolio selection methods by providing more reliable market price information and therefore concludes a rather comprehensive package for GENCO risk management in a market environment. A detailed risk assessment method is presented to further the price modelling work and cover the associated risk management practices in an electricity market. In addition to the issues stemmed from the individual GENCO, issues from an electricity market should also be considered in order to draw a whole picture of a GENCO's risk management. In summary, the contributions of this thesis include: 1) a framework of GENCO strategic bidding considering market uncertainty and incomplete information from rivals; 2) a portfolio optimisation model achieving best risk-return trade-off; 3) a FIA based MCP forecasting method; and 4) a risk assessment method and portfolio evaluation framework quantifying market risk exposure; through out the research, real market data and structure from the Australian NEM are used to validate the methods. This research has led to a number of publications in book chapters, journals and refereed conference proceedings

Long-Term Load Forecasting Considering Volatility Using Multiplicative Error Model

Long-term load forecasting plays a vital role for utilities and planners in terms of grid development and expansion planning. An overestimate of long-term electricity load will result in substantial wasted investment in the construction of excess power facilities, while an underestimate of future load will result in insufficient generation and unmet demand. This paper presents first-of-its-kind approach to use multiplicative error model (MEM) in forecasting load for long-term horizon. MEM originates from the structure of autoregressive conditional heteroscedasticity (ARCH) model where conditional variance is dynamically parameterized and it multiplicatively interacts with an innovation term of time-series. Historical load data, accessed from a U.S. regional transmission operator, and recession data for years 1993-2016 is used in this study. The superiority of considering volatility is proven by out-of-sample forecast results as well as directional accuracy during the great economic recession of 2008. To incorporate future volatility, backtesting of MEM model is performed. Two performance indicators used to assess the proposed model are mean absolute percentage error (for both in-sample model fit and out-of-sample forecasts) and directional accuracy.Comment: 19 pages, 11 figures, 3 table

Road Freight Transport Forecasting: A Fuzzy Monte-Carlo Simulation-Based Model Selection Approach

As important as the classical approaches such as Akaikeꞌs AIC information and Bayesian BIC criterion in model-selection mechanism are, they have limitations. As an alternative, a novel modeling design encompasses a two-stage approach that integrates Fuzzy logic and Monte Carlo simulations (MCSs). In the first stage, an entire family of ARIMA model candidates with the corresponding information-based, residual-based, and statistical criteria is identified. In the second stage, the Mamdani fuzzy model (MFM) is used to uncover interrelationships hidden among previously obtained modelsꞌ criteria. To access the best forecasting model, the MCSs are also used for different settings of weights loaded on the fuzzy rules. The obtained model is developed to predict the road freight transport in Slovenia in the context of choosing the most appropriate electronic toll system. Results show that the mechanism works well when searching for the best model that provides a well-fit to the real data

A novel ensemble method for electric vehicle power consumption forecasting: Application to the Spanish system

The use of electric vehicle across the world has become one of the most challenging issues for environmental policies. The galloping climate change and the expected running out of fossil fuels turns the use of such non-polluting cars into a priority for most developed countries. However, such a use has led to major concerns to power companies, since they must adapt their generation to a new scenario, in which electric vehicles will dramatically modify the curve of generation. In this paper, a novel approach based on ensemble learning is proposed. In particular, ARIMA, GARCH and PSF algorithms' performances are used to forecast the electric vehicle power consumption in Spain. It is worth noting that the studied time series of consumption is non-stationary and adds difficulties to the forecasting process. Thus, an ensemble is proposed by dynamically weighting all algorithms over time. The proposal presented has been implemented for a real case, in particular, at the Spanish Control Centre for the Electric Vehicle. The performance of the approach is assessed by means of WAPE, showing robust and promising results for this research field.Ministerio de Economía y Competitividad Proyectos ENE2016-77650-R, PCIN-2015-04 y TIN2017-88209-C2-R

Deep Learning Techniques for Power System Operation: Modeling and Implementation

The fast development of the deep learning (DL) techniques in the most recent years has drawn attention from both academia and industry. And there have been increasing applications of the DL techniques in many complex real-world situations, including computer vision, medical diagnosis, and natural language processing. The great power and flexibility of DL can be attributed to its hierarchical learning structure that automatically extract features from mass amounts of data. In addition, DL applies an end-to-end solving mechanism, and directly generates the output from the input, where the traditional machine learning methods usually break down the problem and combine the results. The end-to-end mechanism considerably improve the computational efficiency of the DL.The power system is one of the most complex artificial infrastructures, and many power system control and operation problems share the same features as the above mentioned real-world applications, such as time variability and uncertainty, partial observability, which impedes the performance of the conventional model-based methods. On the other hand, with the wide spread implementation of Advanced Metering Infrastructures (AMI), the SCADA, the Wide Area Monitoring Systems (WAMS), and many other measuring system providing massive data from the field, the data-driven deep learning technique is becoming an intriguing alternative method to enable the future development and success of the smart grid. This dissertation aims to explore the potential of utilizing the deep-learning-based approaches to solve a broad range of power system modeling and operation problems. First, a comprehensive literature review is conducted to summarize the existing applications of deep learning techniques in power system area. Second, the prospective application of deep learning techniques in several scenarios in power systems, including contingency screening, cascading outage search, multi-microgrid energy management, residential HVAC system control, and electricity market bidding are discussed in detail in the following 2-6 chapters. The problem formulation, the specific deep learning approaches in use, and the simulation results are all presented, and also compared with the currently used model-based method as a verification of the advantage of deep learning. Finally, the conclusions are provided in the last chapter, as well as the directions for future researches. It’s hoped that this dissertation can work as a single spark of fire to enlighten more innovative ideas and original studies, widening and deepening the application of deep learning technique in the field of power system, and eventually bring some positive impacts to the real-world bulk grid resilient and economic control and operation

Quantum Monte Carlo simulations for estimating FOREX markets: A speculative attacks experience

The foreign exchange markets, renowned as the largest financial markets globally, also stand out as one of the most intricate due to their substantial volatility, nonlinearity, and irregular nature. Owing to these challenging attributes, various research endeavors have been undertaken to effectively forecast future currency prices in foreign exchange with precision. The studies performed have built models utilizing statistical methods, being the Monte Carlo algorithm the most popular. In this study, we propose to apply Auxiliary-Field Quantum Monte Carlo to increase the precision of the FOREX markets models from different sample sizes to test simulations in different stress contexts. Our findings reveal that the implementation of Auxiliary-Field Quantum Monte Carlo significantly enhances the accuracy of these models, as evidenced by the minimal error and consistent estimations achieved in the FOREX market. This research holds valuable implications for both the general public and financial institutions, empowering them to effectively anticipate significant volatility in exchange rate trends and the associated risks. These insights provide crucial guidance for future decision-making processes

Saudi Arabia’s Solar and Wind Energy Penetration:Future Performance and Requirements

Saudi Arabia fully depends on fossil fuels such as oil and natural gas to generate its electricity. Fossil fuels may have limited life and a history of fluctuating costs, which will lead to multiple issues that can affect the energy security of this country in the long-term. Critical Infrastructure Protection (CIP) is a concept different to “energy security”, which must consider the solar and wind energy as basic sources of energy supplies in Saudi Arabia. Monte Carlo Simulation (MCS) and Brownian Motion (BM) approaches were employed to predict the future behaviour of solar and wind energy, along with long-term temperature performance, based on 69 years of historical daily data. MCS and BM were employed to provide a wide range of options for future prediction results. A validation exercise showed that the north-western region was the most highly recommended region for deployment of solar and wind energy applications due to an abundance of solar and wind energy resources with low temperature supported by a clearer sky during the year. This is followed by the southern region, which exhibited good solar and wind energy resources. This study can be considered as a roadmap to meet the climate and sustainability goals by providing a long-term overview of solar energy, wind energy, and temperature performance in some countries that have a lack of long-term future prediction analysis such as Saudi Arabia