Hybrid particle swarm optimization of electricity market participation portfolio

This paper proposes a novel hybrid particle swarm optimization methodology to solve the problem of optimal participation in multiple electricity markets. The decision time is usually very important when planning the participation in electricity markets. This environment is characterized by the time available to take action, since different electricity markets have specific rules, which requires participants to be able to adapt and plan their decisions in a short time. Using metaheuristic optimization, participants' time problems can be resolved, because these methods enable problems to be solved in a short time and with good results. This paper proposes a hybrid resolution method, which is based on the particle swarm optimization metaheuristic. An exact mathematical method, which solves a simplified, linearized, version of the problem, is used to generate the initial solution for the metaheuristic approach, with the objective of improving the quality of results without representing a significant increase of the execution time.This work has received funding from the European Union's Horizon 2020 research and innovation programme under the Marie Sklodowska-Curie grant agreement No 703689 (project ADAPT) and No 641794 (project DREAM-GO); NetEfficity Project (P2020 − 18015); and UID/EEA/00760/2013 funded by FEDER Funds through COMPETE pro-gram and by National Funds through FCT.info:eu-repo/semantics/publishedVersio

Hybrid approach based on particle swarm optimization for electricity markets participation

In many large-scale and time-consuming problems, the application of metaheuristics becomes essential, since these methods enable achieving very close solutions to the exact one in a much shorter time. In this work, we address the problem of portfolio optimization applied to electricity markets negotiation. As in a market environment, decision-making is carried out in very short times, the application of the metaheuristics is necessary. This work proposes a Hybrid model, combining a simplified exact resolution of the method, as a means to obtain the initial solution for a Particle Swarm Optimization (PSO) approach. Results show that the presented approach is able to obtain better results in the metaheuristic search process.This work has received funding from the European Union's Horizon 2020 research and innovation programme under project DOMINOES (grant agreement No 771066) and from FEDER Funds through COMPETE program and from National Funds through FCT under the project UID/EEA/00760/2019 and Ricardo Faia is supported by FCT Funds through and SFRH/BD/133086/2017 PhD scholarship.info:eu-repo/semantics/publishedVersio

Portfolio Optimization for Electricity Market Participation with NPSO-LRS

Massive changes in electricity markets have occurred during the last years, as a consequence of the massive introduction of renewable energies. These changes have led to a restructuring process that had an impact throughout the electrical industry. The case of the electricity markets is a relevant example, where new forms of trading emerged and new market entities were created. With these changes, the complexity of electricity markets increased as well, which brought out the need from the involved players for adequate support to their decision making process. Artificial intelligence plays an important role in the development of these tools. Multi-agent systems, in particular, have been largely explored by stakeholders in the sector. Artificial intelligence also provides intelligent solutions for optimization, which enable troubleshooting in a short time and with very similar results to those achieved by deterministic techniques, which usually result from very high execution times. The work presented in this paper aims at solving a portfolio optimization problem for electricity markets participation, using an approach based on NPSO-LRS (New Particle Swarm Optimization with Local Random Search). The proposed method is used to assist decisions of electricity market players.This work has received funding from the European Union's Horizon 2020 research and innovation programme under the Marie Sklodowska-Curie grant agreement No 641794 (project DREAM-GO) and from FEDER Funds through COMPETE program and from National Funds through FCT under the project UID/EEA/00760/2013info:eu-repo/semantics/publishedVersio

Initial Solution Heuristic for Portfolio Optimization of Electricity Markets Participation

Meta-heuristic search methods are used to find near optimal global solutions for difficult optimization problems. These meta-heuristic processes usually require some kind of knowledge to overcome the local optimum locations. One way to achieve diversification is to start the search procedure from a solution already obtained through another method. Since this solution is already validated the algorithm will converge easily to a greater global solution. In this work, several well-known meta-heuristics are used to solve the problem of electricity markets participation portfolio optimization. Their search performance is compared to the performance of a proposed hybrid method (ad-hoc heuristic to generate the initial solution, which is combined with the search method). The addressed problem is the portfolio optimization for energy markets participation, where there are different markets where it is possible to negotiate. In this way the result will be the optimal allocation of electricity in the different markets in order to obtain the maximum return quantified through the objective function.This work has received funding from the European Union's Horizon 2020 research and innovation programme under the Marie Sklodowska-Curie grant agreement No 641794 (project DREAM-GO) and from FEDER Funds through COMPETE program and from National Funds through FCT under the project UID/EEA/00760/2013.info:eu-repo/semantics/publishedVersio

Decision support for participation in electricity markets considering the transaction of services and electricity at the local level

[EN] The growing concerns regarding the lack of fossil fuels, their costs, and their impact on the environment have led governmental institutions to launch energy policies that promote the increasing installation of technologies that use renewable energy sources to generate energy. The increasing penetration of renewable energy sources brings a great fluctuation on the generation side, which strongly affects the power and energy system management. The control of this system is moving from hierarchical and central to a smart and distributed approach. The system operators are nowadays starting to consider the final end users (consumers and prosumers) as a part of the solution in power system operation activities. In this sense, the end-users are changing their behavior from passive to active players. The role of aggregators is essential in order to empower the end-users, also contributing to those behavior changes. Although in several countries aggregators are legally recognized as an entity of the power and energy system, its role being mainly centered on representing end-users in wholesale market participation. This work contributes to the advancement of the state-of-the-art with models that enable the active involvement of the end-users in electricity markets in order to become key participants in the management of power and energy systems. Aggregators are expected to play an essential role in these models, making the connection between the residential end-users, electricity markets, and network operators. Thus, this work focuses on providing solutions to a wide variety of challenges faced by aggregators. The main results of this work include the developed models to enable consumers and prosumers participation in electricity markets and power and energy systems management. The proposed decision support models consider demand-side management applications, local electricity market models, electricity portfolio management, and local ancillary services. The proposed models are validated through case studies based on real data. The used scenarios allow a comprehensive validation of the models from different perspectives, namely end-users, aggregators, and network operators. The considered case studies were carefully selected to demonstrate the characteristics of each model, and to demonstrate how each of them contributes to answering the research questions defined to this work.[ES] La creciente preocupación por la escasez de combustibles fósiles, sus costos y su impacto en el medio ambiente ha llevado a las instituciones gubernamentales a lanzar políticas energéticas que promuevan la creciente instalación de tecnologías que utilizan fuentes de energía renovables para generar energía. La creciente penetración de las fuentes de energía renovable trae consigo una gran fluctuación en el lado de la generación, lo que afecta fuertemente la gestión del sistema de potencia y energía. El control de este sistema está pasando de un enfoque jerárquico y central a un enfoque inteligente y distribuido. Actualmente, los operadores del sistema están comenzando a considerar a los usuarios finales (consumidores y prosumidores) como parte de la solución en las actividades de operación del sistema eléctrico. En este sentido, los usuarios finales están cambiando su comportamiento de jugadores pasivos a jugadores activos. El papel de los agregadores es esencial para empoderar a los usuarios finales, contribuyendo también a esos cambios de comportamiento. Aunque en varios países los agregadores están legalmente reconocidos como una entidad del sistema eléctrico y energético, su papel se centra principalmente en representar a los usuarios finales en la participación del mercado mayorista. Este trabajo contribuye al avance del estado del arte con modelos que permiten la participación activa de los usuarios finales en los mercados eléctricos para convertirse en participantes clave en la gestión de los sistemas de potencia y energía. Se espera que los agregadores desempeñen un papel esencial en estos modelos, haciendo la conexión entre los usuarios finales residenciales, los mercados de electricidad y los operadores de red. Por lo tanto, este trabajo se enfoca en brindar soluciones a una amplia variedad de desafíos que enfrentan los agregadores. Los principales resultados de este trabajo incluyen los modelos desarrollados para permitir la participación de los consumidores y prosumidores en los mercados eléctricos y la gestión de los sistemas de potencia y energía. Los modelos de soporte de decisiones propuestos consideran aplicaciones de gestión del lado de la demanda, modelos de mercado eléctrico local, gestión de cartera de electricidad y servicios auxiliares locales. Los modelos propuestos son validan mediante estudios de casos basados en datos reales. Los escenarios utilizados permiten una validación integral de los modelos desde diferentes perspectivas, a saber, usuarios finales, agregadores y operadores de red. Los casos de estudio considerados fueron cuidadosamente seleccionados para demostrar las características de cada modelo y demostrar cómo cada uno de ellos contribuye a responder las preguntas de investigación definidas para este trabajo

Short-term Self-Scheduling of Virtual Energy Hub Plant within Thermal Energy Market

Multicarrier energy systems create new challenges as well as opportunities in future energy systems. One of these challenges is the interaction among multiple energy systems and energy hubs in different energy markets. By the advent of the local thermal energy market in many countries, energy hubs' scheduling becomes more prominent. In this article, a new approach to energy hubs' scheduling is offered, called virtual energy hub (VEH). The proposed concept of the energy hub, which is named as the VEH in this article, is referred to as an architecture based on the energy hub concept beside the proposed self-scheduling approach. The VEH is operated based on the different energy carriers and facilities as well as maximizes its revenue by participating in the various local energy markets. The proposed VEH optimizes its revenue from participating in the electrical and thermal energy markets and by examining both local markets. Participation of a player in the energy markets by using the integrated point of view can be reached to a higher benefit and optimal operation of the facilities in comparison with independent energy systems. In a competitive energy market, a VEH optimizes its self-scheduling problem in order to maximize its benefit considering uncertainties related to renewable resources. To handle the problem under uncertainty, a nonprobabilistic information gap method is implemented in this study. The proposed model enables the VEH to pursue two different strategies concerning uncertainties, namely risk-averse strategy and risk-seeker strategy. For effective participation of the renewable-based VEH plant in the local energy market, a compressed air energy storage unit is used as a solution for the volatility of the wind power generation. Finally, the proposed model is applied to a test case, and the numerical results validate the proposed approach

Adaptação automática de algoritmos de otimização metaheurística

A maioria dos problemas do mundo real tem uma multiplicidade de possíveis soluções. Além disso, usualmente, são encontradas limitações de recursos e tempo na resolução de problemas reais complexos e, por isso, frequentemente, não é possível aplicar um método determinístico na resolução desses problemas. Por este motivo, as meta-heurísticas têm ganho uma relevância significativa sobre os métodos determinísticos na resolução de problemas de otimização com múltiplas combinações. Ainda que as abordagens meta-heurísticas sejam agnósticas ao problema, os resultados da otimização são fortemente influenciados pelos parâmetros que estas meta-heurísticos necessitam para a sua configuração. Por sua vez, as melhores parametrizações são fortemente influenciadas pela meta-heurística e pela função objetivo. Por este motivo, a cada novo desenvolvimento é necessária uma otimização dos parâmetros das metas heurísticas praticamente partindo do zero. Assim, e, atendendo ao aumento da complexidade das meta-heurísticas e dos problemas aos quais estassão normalmente aplicadas, tem-se vindo a observar um crescente interesse no problema da configuração ótima destes algoritmos. Neste projeto é apresentada uma nova abordagem de otimização automática dos parâmetros de algoritmos meta-heurísticos. Esta abordagem não consiste numa pré-seleção estática de um único conjunto de parâmetros que será utilizado ao longo da pesquisa, como é a abordagem comum, mas sim na criação de um processo dinâmico, em que a parametrização é alterada ao longo da otimização. Esta solução consiste na divisão do processo de otimização em três etapas, forçando, numa primeira etapa um nível alto de exploração do espaço de procura, seguida de uma exploração intermédia e, na última etapa, privilegiando a pesquisa local focada nos pontos de maior potencial. De forma a permitir uma solução eficiente e eficaz, foram desenvolvidos dois módulos um Módulo de Treino e um Módulo de Otimização. No Módulo de Treino, o processo de fine-tuning é automatizado e, consequentemente, o processo de integração de uma nova meta-heurística ou uma nova função objetivo é facilitado. No Módulo de Otimização é usado um sistema multiagente para a otimização de uma dada função seguindo a abordagem de pesquisa proposta. Com base nos resultados obtidos através da aplicação de otimização por enxame de partículas e algoritmos genéticos a várias funções benchmark e a um problema real na área dos sistemas de energia, o Módulo de Treino permitiu automatizar o processo de fine-tuning e, consequentemente, facilitar o processo de introdução no sistema de uma nova meta-heurística ou de uma nova função relativa a um novo problema a resolver. Utilizando a abordagem de otimização proposta através do Módulo de Otimização, obtém-se uma maior generalização e os resultados são melhorados sem comprometer o tempo máximo para a otimização.Most real-word problems have a large solution space. Due to resource and time constraints, it is often not possible to apply a deterministic method to solve such problems. For this reason, metaheuristic optimization algorithm has earned increased popularity over the deterministic methods in solving complex combination optimization problems. However, despite being problem-agnostic techniques, metaheuristic’s optimization results are highly impacted by the defined parameters. The best parameterizations are highly impacted by the metaheuristic version and by the addressed objective function. For this reason, with each new development it is necessary to optimize the metaheuristic parameters practically from scratch. Thus, and given the increasing complexity of metaheuristics and the problems to which they are normally applied, there has been a growing interest in the problem of optimal configuration of these algorithms. In this work, a new approach for automatic optimization of metaheuristic algorithms parameters is presented. This approach does not consist in a static pre-selection of a single set of parameters that will be used throughout the search process, as is the common approach, but in the creation of a dynamic process, in which the parameterization is changed during the optimization. This solution consists of dividing the optimization process into three stages, forcing, in a first stage, a high level of exploration of the search space, followed by an intermediate exploration and, in the last stage, fostering local search focused on the points of greatest potential. In order to allow an efficient and effective solution, two modules are developed, a Training Module and an Optimization Module. In the Training Module, the finetuning process is automated and, consequently, the process of integrating a new metaheuristic or a new objective function is facilitated. In the Optimization Module, a multi-agent system is used to optimize a given function following the proposed research approach. Based on the results obtained using particle swarm optimization and genetic algorithms to solve several benchmark functions and a real problem in the area of power and energy systems, the Training Module made it possible to automate the fine-tuning process and, consequently, facilitate the process of introducing in the system a new metaheuristic or a new function related to a new problem to be solved. Using the proposed optimization approach through the Optimization Module, a greater generalization is obtained, and the results are improved without compromising the maximum time for the optimization

Flexibility management model of home appliances to support DSO requests in smart grids

Several initiates have been taken promoting clean energy and the use of local flexibility towards a more sustainable and green economy. From a residential point of view, flexibility can be provided to operators using home-appliances with the ability to modify their consumption profiles. These actions are part of demand response programs and can be utilized to avoid problems, such as balancing/congestion, in distribution networks. In this paper, we propose a model for aggregators flexibility provision in distribution networks. The model takes advantage of load flexibility resources allowing the re-schedule of shifting/real-time home-appliances to provision a request from a distribution system operator (DSO) or a balance responsible party (BRP). Due to the complex nature of the problem, evolutionary computation is evoked and different algorithms are implemented for solving the formulation efficiently. A case study considering 20 residential houses equipped each with seven types of home-appliances is used to test and compare the performance of evolutionary algorithms solving the proposed model. Results show that the aggregator can fulfill a flexibility request from the DSO/BRP by re-scheduling the home-appliances loads for the next 24-h horizon while minimizing the costs associated with the remuneration given to end-users.The present work has been developed under the EUREKA – ITEA2 Project M2MGrids (ITEA-13011), Project SIMOCE (ANI—P2020 17690), and has received funding from FEDER Funds through COMPETE program and from National Funds through FCT under the project UIDB/00760/2020. Joao Soares is supported by FCT under CEECIND/02814/2017 grant.info:eu-repo/semantics/publishedVersio

Initial Solution Heuristic for Portfolio Optimization of Electricity Markets Participation

Meta-heuristic search methods are used to find near optimal global solutions for difficult optimization problems. These meta-heuristic processes usually require some kind of knowledge to overcome the local optimum locations. One way to achieve diversification is to start the search procedure from a solution already obtained through another method. Since this solution is already validated the algorithm will converge easily to a greater global solution. In this work, several well-known meta-heuristics are used to solve the problem of electricity markets participation portfolio optimization. Their search performance is compared to the performance of a proposed hybrid method (ad-hoc heuristic to generate the initial solution, which is combined with the search method). The addressed problem is the portfolio optimization for energy markets participation, where there are different markets where it is possible to negotiate. In this way the result will be the optimal allocation of electricity in the different markets in order to obtain the maximum return quantified through the objective function.This work has received funding from the European Union's Horizon 2020 research and innovation programme under the Marie Sklodowska-Curie grant agreement No 641794 (project DREAM-GO) and from FEDER Funds through COMPETE program and from National Funds through FCT under the project UID/EEA/00760/2013.info:eu-repo/semantics/publishedVersio

Artificial Intelligence and Machine Learning Approaches to Energy Demand-Side Response: A Systematic Review

Recent years have seen an increasing interest in Demand Response (DR) as a means to provide flexibility, and hence improve the reliability of energy systems in a cost-effective way. Yet, the high complexity of the tasks associated with DR, combined with their use of large-scale data and the frequent need for near real-time de-cisions, means that Artificial Intelligence (AI) and Machine Learning (ML) — a branch of AI — have recently emerged as key technologies for enabling demand-side response. AI methods can be used to tackle various challenges, ranging from selecting the optimal set of consumers to respond, learning their attributes and pref-erences, dynamic pricing, scheduling and control of devices, learning how to incentivise participants in the DR schemes and how to reward them in a fair and economically efficient way. This work provides an overview of AI methods utilised for DR applications, based on a systematic review of over 160 papers, 40 companies and commercial initiatives, and 21 large-scale projects. The papers are classified with regards to both the AI/ML algorithm(s) used and the application area in energy DR. Next, commercial initiatives are presented (including both start-ups and established companies) and large-scale innovation projects, where AI methods have been used for energy DR. The paper concludes with a discussion of advantages and potential limitations of reviewed AI techniques for different DR tasks, and outlines directions for future research in this fast-growing area