Transferable Energy Storage Bidder

Energy storage resources must consider both price uncertainties and their physical operating characteristics when participating in wholesale electricity markets. This is a challenging problem as electricity prices are highly volatile, and energy storage has efficiency losses, power, and energy constraints. This paper presents a novel, versatile, and transferable approach combining model-based optimization with a convolutional long short-term memory network for energy storage to respond to or bid into wholesale electricity markets. We test our proposed approach using historical prices from New York State, showing it achieves state-of-the-art results, achieving between 70% to near 90% profit ratio compared to perfect foresight cases, in both price response and wholesale market bidding setting with various energy storage durations. We also test a transfer learning approach by pre-training the bidding model using New York data and applying it to arbitrage in Queensland, Australia. The result shows transfer learning achieves exceptional arbitrage profitability with as little as three days of local training data, demonstrating its significant advantage over training from scratch in scenarios with very limited data availability

Distributional Reinforcement Learning-based Energy Arbitrage Strategies in Imbalance Settlement Mechanism

Growth in the penetration of renewable energy sources makes supply more uncertain and leads to an increase in the system imbalance. This trend, together with the single imbalance pricing, opens an opportunity for balance responsible parties (BRPs) to perform energy arbitrage in the imbalance settlement mechanism. To this end, we propose a battery control framework based on distributional reinforcement learning (DRL). Our proposed control framework takes a risk-sensitive perspective, allowing BRPs to adjust their risk preferences: we aim to optimize a weighted sum of the arbitrage profit and a risk measure while constraining the daily number of cycles for the battery. We assess the performance of our proposed control framework using the Belgian imbalance prices of 2022 and compare two state-of-the-art RL methods, deep Q learning and soft actor-critic. Results reveal that the distributional soft actor-critic method can outperform other methods. Moreover, we note that our fully risk-averse agent appropriately learns to hedge against the risk related to the unknown imbalance price by (dis)charging the battery only when the agent is more certain about the price

Optimal Energy Storage Scheduling for Wind Curtailment Reduction and Energy Arbitrage: A Deep Reinforcement Learning Approach

Wind energy has been rapidly gaining popularity as a means for combating climate change. However, the variable nature of wind generation can undermine system reliability and lead to wind curtailment, causing substantial economic losses to wind power producers. Battery energy storage systems (BESS) that serve as onsite backup sources are among the solutions to mitigate wind curtailment. However, such an auxiliary role of the BESS might severely weaken its economic viability. This paper addresses the issue by proposing joint wind curtailment reduction and energy arbitrage for the BESS. We decouple the market participation of the co-located wind-battery system and develop a joint-bidding framework for the wind farm and BESS. It is challenging to optimize the joint-bidding because of the stochasticity of energy prices and wind generation. Therefore, we leverage deep reinforcement learning to maximize the overall revenue from the spot market while unlocking the BESS's potential in concurrently reducing wind curtailment and conducting energy arbitrage. We validate the proposed strategy using realistic wind farm data and demonstrate that our joint-bidding strategy responds better to wind curtailment and generates higher revenues than the optimization-based benchmark. Our simulations also reveal that the extra wind generation used to be curtailed can be an effective power source to charge the BESS, resulting in additional financial returns.Comment: 2023 IEEE Power & Energy Society General Meeting (PESGM). arXiv admin note: text overlap with arXiv:2212.1336

Deep Reinforcement Learning for Wind and Energy Storage Coordination in Wholesale Energy and Ancillary Service Markets

Global power systems are increasingly reliant on wind energy as a mitigation strategy for climate change. However, the variability of wind energy causes system reliability to erode, resulting in the wind being curtailed and, ultimately, leading to substantial economic losses for wind farm owners. Wind curtailment can be reduced using battery energy storage systems (BESS) that serve as onsite backup sources. Yet, this auxiliary role may significantly hamper the BESS's capacity to generate revenues from the electricity market, particularly in conducting energy arbitrage in the Spot market and providing frequency control ancillary services (FCAS) in the FCAS markets. Ideal BESS scheduling should effectively balance the BESS's role in absorbing onsite wind curtailment and trading in the electricity market, but it is difficult in practice because of the underlying coordination complexity and the stochastic nature of energy prices and wind generation. In this study, we investigate the bidding strategy of a wind-battery system co-located and participating simultaneously in both the Spot and Regulation FCAS markets. We propose a deep reinforcement learning (DRL)-based approach that decouples the market participation of the wind-battery system into two related Markov decision processes for each facility, enabling the BESS to absorb onsite wind curtailment while simultaneously bidding in the wholesale Spot and FCAS markets to maximize overall operational revenues. Using realistic wind farm data, we validated the coordinated bidding strategy for the wind-battery system and find that our strategy generates significantly higher revenue and responds better to wind curtailment compared to an optimization-based benchmark. Our results show that joint-market bidding can significantly improve the financial performance of wind-battery systems compared to individual market participation

Managing Intermittent Renewable Generation with Battery Storage using a Deep Reinforcement Learning Strategy

Most of Germany’s existing wind and solar plants have been losing their subsidies after 20 years of operation since 2020. Without support schemes, the challenges for the renewable operators are the intermittent generation and the fluctuating power prices. Consequently, lower-than-expected revenues and high revenue variability make it more difficult for the renewable operators to be active on power markets. Therefore, the renewable operators have to be profit effective as well as cope with the high variability of their revenue. This paper proposes a deep reinforcement learning (DRL) based model to adjust the renewable operators’ short-term energy supply using a battery storage strategy. The simulative empirical evaluation shows that the renewable operators can be profitable on the market and improve their revenue stability using the proposed DRL based battery storage strategy

Multi-agent reinforcement learning for the coordination of residential energy flexibility

This thesis investigates whether residential energy flexibility can be coordinated without sharing personal data at scale to achieve a positive impact on energy users and the grid. To tackle climate change, energy uses are being electrified at pace, just as electricity is increasingly provided by non-dispatchable renewable energy sources. These shifts increase the requirements for demand-side flexibility. Despite the potential of residential energy to provide such flexibility, it has remained largely untapped due to cost, social acceptance, and technical barriers. This thesis investigates the use of multi-agent reinforcement learning to overcome these challenges. This thesis presents a novel testing environment, which models electric vehicles, space heating, and flexible household loads in a distribution network. Additionally, a generative adversarial network-based data generator is developed to obtain realistic training and testing data. Experiments conducted in this environment showed that standard independent learners fail to coordinate in the partially observable stochastic environment. To address this, additional coordination mechanisms are proposed for agents to practise coordination in a centralised simulated rehearsal, ahead of fully decentralised implementation. Two such coordination mechanisms are proposed: optimisation-informed independent learning, and a centralised but factored critic network. In the former, agents lean from omniscient convex optimisation results ahead of fully decentralised coordination. This enables cooperation at scale where standard independent learners under partial observability could not be coordinated. In the latter, agents employ a deep neural factorisation network to learn to assess their impact on global rewards. This approach delivers comparable performance for four agents and more, with a 34-fold speed improvement for 30 agents and only first-order computational time growth. Finally, the impacts of implementing implicit coordination using these multi- agent reinforcement learning methodologies are modelled. It is observed that even without explicit grid constraint management, cooperating energy users reduce the likelihood of voltage deviations. The cooperative management of voltage constraints could be further promoted by the MARL policies, whereby their likelihood could be reduced by 43.08% relative to an uncoordinated baseline, albeit with trade-offs in other costs. However, while this thesis demonstrates the technical feasibility of MARL-based cooperation, further market mechanisms are required to reward all participants for their cooperation

Modelling and Simulation Approaches for Local Energy Community Integrated Distribution Networks

Due to the absence of studies of local energy communities (LECs) where the grid is represented, it is very difficult to infer implications of increased LEC integration for the distribution grid as well as for the wider society. Therefore, this paper aims to investigate holistic modelling and simulation approaches of LECs. To conduct a quantifiable assessment of different control architectures, LEC types and market frameworks, a flexible and comprehensive LEC modelling and simulation approach is needed. Modelling LECs and the environment they operate in involves a holistic approach consisting of different layers: market, controller, and grid. The controller layer is relevant both for the overall energy management system of the LEC and the controllers of single components in a LEC. In this paper, the different LEC modelling approaches in the reviewed literature are presented, several multilayered concepts for LECs are proposed, and a case study is presented to illustrate a holistic simulation where the different layers interact.Modelling and Simulation Approaches for Local Energy Community Integrated Distribution NetworkspublishedVersio