New actor types in electricity market simulation models: Deliverable D4.4

Project TradeRES - New Markets Design & Models for 100% Renewable Power Systems: https://traderes.eu/about/ABSTRACT: The modelling of agents in the simulation models and tools is of primary importance if the quality and the validity of the simulation outcomes are at stake. This is the first version of the report that deals with the representation of electricity market actors’ in the agent based models (ABMs) used in TradeRES project. With the AMIRIS, the EMLab-Generation (EMLab), the MASCEM and the RESTrade models being in the centre of the analysis, the subject matter of this report has been the identification of the actors’ characteristics that are already covered by the initial (with respect to the project) version of the models and the presentation of the foreseen modelling enhancements. For serving these goals, agent attributes and representation methods, as found in the literature of agent-driven models, are considered initially. The detailed review of such aspects offers the necessary background and supports the formation of a context that facilitates the mapping of actors’ characteristics to agent modelling approaches. Emphasis is given in several approaches and technics found in the literature for the development of a broader environment, on which part of the later analysis is deployed. Although the ABMs that are used in the project constitute an important part of the literature, they have not been included in the review since they are the subject of another section.N/

Congestion Management by Applying Co-operative FACTS and DR program to Maximize Renewables

This research proposes an incremental welfare consensus method based on flexible alternating current transmission systems (FACTS) and demand response (DR) programs to control transmission network congestion in order to increase the penetration of wind power. The locational marginal prices are used as input by the suggested model to control the FACTS device and DR resources. In order to do this, a cutting-edge two-stage market clearing system is created. In the first stage, participants bid on the market with the intention of maximizing their profits, and the ISO clears the market with the goal of promoting societal welfare. The second step involves the execution of a generation re-dispatch issue in which incentive-based DR and FACTS device controllers are optimally coordinated to reduce the rescheduling expenses for generating firms. Here, a static synchronous compensator and a series capacitor operated by a thyristor are used as two different forms of FACTS devices. A case study on the modified IEEE one-area 24-bus RTS system is then completed. The simulation results show that the suggested interactive DR and FACTS model not only reduces system congestion but also makes the system more flexible so that it can capture as much wind energy as feasible.Comment: 23 pages, 8 figures, 8 table

A Comprehensive Review of Congestion Management in Power System

In recent decades, restructuring has cut across all probable domains, involving the power supply industry. The restructuring has brought about considerable changes whereby electricity is now a commodity and has become a deregulated one. These competitive markets have paved the way for countless entrants. This has caused overload and congestion on transmission lines. In addition, the open access transmission network has created a more intensified congestion issue. Therefore, congestion management on power systems is relevant and central significance to the power industry. This manuscript review few congestion management techniques, consists of Reprogramming Generation (GR), Load Shedding, Optimal Distributed Generation (DG) Location, Nodal Pricing, Free Methods, Genetic Algorithm (GA), Particle Swarm Optimization (PSO), Fuzzy Logic System Method, as well as Additional Renewable Energy Sources. In this manuscript a review work is performed to unite the entire publications on congestion management

A Comprehensive Review of Congestion Management in Power System

In recent decades, restructuring has cut across all probable domains, involving the power supply industry. The restructuring has brought about considerable changes whereby electricity is now a commodity and has become a deregulated one. These competitive markets have paved the way for countless entrants. This has caused overload and congestion on transmission lines. In addition, the open access transmission network has created a more intensified congestion issue. Therefore, congestion management on power systems is relevant and central significance to the power industry. This manuscript review few congestion management techniques, consists of Reprogramming Generation (GR), Load Shedding, Optimal Distributed Generation (DG) Location, Nodal Pricing, Free Methods, Genetic Algorithm (GA), Particle Swarm Optimization (PSO), Fuzzy Logic System Method, as well as Additional Renewable Energy Sources. In this manuscript a review work is performed to unite the entire publications on congestion management

D4.4 - New actor types in electricity market simulation models

The modelling of agents in the simulation models and tools is of primary importance if the quality and the validity of the simulation outcomes are at stake. This is the final version of the report that deals with the representation of electricity market actors’ in the agent-based models (ABMs) used in TradeRES project and it was developed within the scope of Task 4.2 - Representation of new actors, markets and policies. With the ABMs available in the consortium (AMIRIS, the EMLab, the MASCEM and the RESTrade) being in the centre of the analysis, the subject matter of this report has been the identification of the actors’ characteristics that are already covered by the initial (with respect to the project) version of the models and the presentation of the foreseen modelling enhancements

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

Investigating the impacts of price-taking and price-making energy storage in electricity markets through an equilibrium programming model

The envisaged decarbonisation of electricity systems has attracted significant interest around the role and value of energy storage systems (ESSs). In the deregulated electricity market, there is a need to investigate the complex impacts of ESSs, considering the potential exercise of market power by strategic players. This study aims at comprehensively analysing the impacts of both price-taking and price-making storage behaviours on energy market efficiency, corresponding to potential settings with small and large storage players, respectively. In order to achieve this and in contrast to previous papers, this work develops a multi-period equilibrium programming market model to determine market equilibrium stemming from the interactions of independent strategic producers and ESSs, while capturing the time-coupling operational constraints of ESSs as well as network constraints. The results of case studies on a test market capturing the general conditions of the GB electricity system demonstrate that the introduction of ESSs mitigates market power exercise and improves market efficiency, with this beneficial impact being higher when ESSs act as price takers. When the electricity network is congested, the location of ESSs also affects the market outcome, with their beneficial impact on market efficiency being higher when they are located in higher-priced areas