Opportunities for Price Manipulation by Aggregators in Electricity Markets

Aggregators are playing an increasingly crucial role for integrating renewable generation into power systems. However, the intermittent nature of renewable generation makes market interactions of aggregators difficult to monitor and regulate, raising concerns about potential market manipulations. In this paper, we address this issue by quantifying the profit an aggregator can obtain through strategic curtailment of generation in an electricity market. We show that, while the problem of maximizing the benefit from curtailment is hard in general, efficient algorithms exist when the topology of the network is radial (acyclic). Further, we highlight that significant increases in profit can be obtained through strategic curtailment in practical settings

PowerModels.jl: An Open-Source Framework for Exploring Power Flow Formulations

In recent years, the power system research community has seen an explosion of novel methods for formulating and solving power network optimization problems. These emerging methods range from new power flow approximations, which go beyond the traditional DC power flow by capturing reactive power, to convex relaxations, which provide solution quality and runtime performance guarantees. Unfortunately, the sophistication of these emerging methods often presents a significant barrier to evaluating them on a wide variety of power system optimization applications. To address this issue, this work proposes PowerModels, an open-source platform for comparing power flow formulations. From its inception, PowerModels was designed to streamline the process of evaluating different power flow formulations on shared optimization problem specifications. This work provides a brief introduction to the design of PowerModels, validates its implementation, and demonstrates its effectiveness with a proof-of-concept study analyzing five different formulations of the Optimal Power Flow problem

Improving QC Relaxations of OPF Problems via Voltage Magnitude Difference Constraints and Envelopes for Trilinear Monomials

AC optimal power flow (AC~OPF) is a challenging non-convex optimization problem that plays a crucial role in power system operation and control. Recently developed convex relaxation techniques provide new insights regarding the global optimality of AC~OPF solutions. The quadratic convex (QC) relaxation is one promising approach that constructs convex envelopes around the trigonometric and product terms in the polar representation of the power flow equations. This paper proposes two methods for tightening the QC relaxation. The first method introduces new variables that represent the voltage magnitude differences between connected buses. Using "bound tightening" techniques, the bounds on the voltage magnitude difference variables can be significantly smaller than the bounds on the voltage magnitudes themselves, so constraints based on voltage magnitude differences can tighten the relaxation. Second, rather than a potentially weaker "nested McCormick" formulation, this paper applies "Meyer and Floudas" envelopes that yield the convex hull of the trilinear monomials formed by the product of the voltage magnitudes and trignometric terms in the polar form of the power flow equations. Comparison to a state-of-the-art QC implementation demonstrates the advantages of these improvements via smaller optimality gaps.Comment: 8 pages, 1 figur

Sparse Inverse Covariance Estimation for Chordal Structures

In this paper, we consider the Graphical Lasso (GL), a popular optimization problem for learning the sparse representations of high-dimensional datasets, which is well-known to be computationally expensive for large-scale problems. Recently, we have shown that the sparsity pattern of the optimal solution of GL is equivalent to the one obtained from simply thresholding the sample covariance matrix, for sparse graphs under different conditions. We have also derived a closed-form solution that is optimal when the thresholded sample covariance matrix has an acyclic structure. As a major generalization of the previous result, in this paper we derive a closed-form solution for the GL for graphs with chordal structures. We show that the GL and thresholding equivalence conditions can significantly be simplified and are expected to hold for high-dimensional problems if the thresholded sample covariance matrix has a chordal structure. We then show that the GL and thresholding equivalence is enough to reduce the GL to a maximum determinant matrix completion problem and drive a recursive closed-form solution for the GL when the thresholded sample covariance matrix has a chordal structure. For large-scale problems with up to 450 million variables, the proposed method can solve the GL problem in less than 2 minutes, while the state-of-the-art methods converge in more than 2 hours