Optimal management of demand response aggregators considering customers' preferences within distribution networks

In this paper, a privacy-based demand response (DR) trading scheme among end-users and DR aggregators (DRAs) is proposed within the retail market framework and by Distribution Platform Optimizer (DPO). This scheme aims to obtain the optimum DR volume to be exchanged while considering both DRAs’ and customers’ preferences. A bilevel programming model is formulated in a day-ahead market within retail markets. In the upper-level problem, the total operation cost of the distribution system, which consists of DRAs’ cost and other electricity trading costs, is minimized. The production volatility of renewable energy resources is also taken into account in this level through stochastic two-stage programming and MonteCarlo Simulation method. In the lower-level problem, the electricity bill for customers is minimized for customers. The income from DR selling is maximized based on DR prices through secure communication of household energy management systems (HEMS) and DRA. To solve this convex and continuous bilevel problem, it is converted to an equivalent single-level problem by adding primal and dual constraints of lower level as well as its strong duality condition to the upper-level problem. The results demonstrate the effectiveness of different DR prices and different number of DRAs on hourly DR volume, hourly DR cost and power exchange between the studied network and the upstream network.©2020 The Institution of Engineering and Technology. This paper is a postprint of a paper submitted to and accepted for publication in IET Generation, Transmission and Distribution and is subject to Institution of Engineering and Technology Copyright. The copy of record is available at the IET Digital Library.fi=vertaisarvioitu|en=peerReviewed

Competitive and Cooperative Approaches to the Balancing Market in Distribution Grids

The electrical grid has been changing in the last decade due to the presence, at the distribution level, of renewables, distributed generation, storage systems, microgrids, and electric vehicles. The introduction of new legislation and actors in the smart grid\u2019s system opens new challenges for the activities of companies, and the development of new energy management systems, models, and methods. In order to face this revolution, new market structures are being defined as well as new technologies and optimization and control algorithms for the management of distributed resources and the coordination of local users to contribute to active power reserve and ancillary services. One of the main problems for an electricity market operator that also owns the distribution grid is to avoid congestions and maximize the quality of the service provided. The thesis concerns the development and application of new methods for the optimization of network systems (with multi-decision makers) with particular attention to the case of power distribution networks This Ph.D. thesis aims to address the current lack of properly defined market structures for the determination of balancing services in distribution networks. As a first study, to be able to handle the power flow equation in a computationally better way, a new convex relaxation has been proposed. Thereafter, two opposite types of market structure have been developed: competitive and cooperative. The first structure presents a two-tier mechanism where the market operator is in a predominant position compared to other market players. Vice versa in the cooperative mechanism (solved through distributed optimization techniques ) all actors are on the same level and work together for social welfare. The main methodological novelties of the proposed work are to solve complex problems with formally correct and computationally efficient techniques

Optimal Demand Response Strategy in Electricity Markets through Bi-level Stochastic Short-Term Scheduling

Current technology in the smart monitoring including Internet of Things (IoT) enables the electricity network at both transmission and distribution levels to apply demand response (DR) programs in order to ensure the secure and economic operation of power systems. Liberalization and restructuring in the power systems industry also empowers demand-side management in an optimum way. The impacts of DR scheduling on the electricity market can be revealed through the concept of DR aggregators (DRAs), being the interface between supply side and demand side. Various markets such as day-ahead and real-time markets are studied for supply-side management and demand-side management from the Independent System Operator (ISO) viewpoint or Distribution System Operator (DSO) viewpoint. To achieve the research goals, single or bi-level optimization models can be developed. The behavior of weather-dependent renewable energy sources, such as wind and photovoltaic power generation as uncertainty sources, is modeled by the Monte-Carlo Simulation method to cope with their negative impact on the scheduling process. Moreover, two-stage stochastic programming is applied in order to minimize the operation cost. The results of this study demonstrate the importance of considering all effective players in the market, such as DRAs and customers, on the operation cost. Moreover, modeling the uncertainty helps network operators to reduce the expenses, enabling a resilient and reliable network.A tecnologia atual na monitorização inteligente, incluindo a Internet of Things (IoT), permite que a rede elétrica ao nível da transporte e distribuição faça uso de programas de demand response (DR) para garantir a operação segura e económica dos sistemas de energia. A liberalização e a reestruturação da indústria dos sistemas de energia elétrica também promovem a gestão do lado da procura de forma otimizada. Os impactes da implementação de DR no mercado elétrico podem ser expressos pelo conceito de agregadores de DR (DRAs), sendo a interface entre o lado da oferta e o lado da procura de energia elétrica. Vários mercados, como os mercados diário e em tempo real, são estudados visando a gestão otimizada do ponto de vista do Independent System Operator (ISO) ou do Distribution System Operator (DSO). Para atingir os objetivos propostos, modelos de otimização em um ou dois níveis podem ser desenvolvidos. O comportamento das fontes de energia renováveis dependentes do clima, como a produção de energia eólica e fotovoltaica que acarretam incerteza, é modelado pelo método de simulação de Monte Carlo. Ainda, two-stage stochastic programming é aplicada para minimizar o custo de operação. Os resultados deste estudo demonstram a importância de considerar todos os participantes efetivos no mercado, como DRAs e clientes finais, no custo de operação. Ainda, considerando a incerteza no modelo beneficia os operadores da rede na redução de custos, capacitando a resiliência e fiabilidade da rede

Effective demand response gathering and deployment in smart grids for intensive renewable integration using aggregation and machine learning

Tesis por compendio de publicaciones.[EN] Distributed generation, namely renewables-based technologies, have emerged as a crucial component in the transition to mitigate the effects of climate change, providing a decentralized approach to electricity production. However, the volatile behavior of distributed generation has created new challenges in maintaining system balance and reliability. In this context, the demand response concept and corresponding programs arise giving the local energy communities prominence. In demand response concept, it is expected an empowerment of the consumer in the electricity sector. This has a significant impact on grid operations and brings complex interactions due to the volatile behavior, privacy concerns, and lack of consumer knowledge in the energy market context. For this, aggregators play a crucial role addressing these challenges. It is crucial to develop tools that allow the aggregators helping consumers to make informed decisions, maximize the benefits of their flexibility resources, and contribute to the overall success of grid operations. This thesis, through innovative solutions and resorting to artificial intelligence models, addresses the integration of renewables, promoting fair participation among all demand response providers. The thesis ultimately results in an innovative decision support system - MAESTRO, the Machine learning Assisted Energy System management Tool for Renewable integration using demand respOnse. MAESTRO is composed by a set of diversified models that together contribute for handling the complexity of managing energy communities with distributed generation resources, demand response providers, energy storage systems and electric vehicles. This PhD thesis comprises a comprehensive analysis of state-of-the-art techniques, system design and development, experimental results, and key findings. In this research were published twenty-six scientific papers, in both international journals and conference proceedings. Contributions to international projects and Portuguese projects was accomplished. [ES] La generación distribuida, en particular las tecnologías basadas en energías renovables, se ha convertido en un componente crucial en la transición para mitigar los efectos del cambio climático, al proporcionar un enfoque descentralizado para la producción de electricidad. Sin embargo, el comportamiento volátil de la generación distribuida ha generado nuevos desafíos para mantener el equilibrio y la confiabilidad del sistema. En este contexto, surge el concepto de respuesta de la demanda y los programas correspondientes, otorgando prominencia a las comunidades energéticas locales. En el concepto de "respuesta a la demanda" (DR por sus siglas en inglés), se espera un empoderamiento del consumidor en el sector eléctrico. Esto tiene un impacto significativo en la operación de la red y genera interacciones complejas debido al comportamiento volátil, las preocupaciones de privacidad y la falta de conocimiento del consumidor en el contexto del mercado energético. Para esto, los agregadores desempeñan un papel crucial al abordar estos desafíos. Es fundamental desarrollar herramientas que permitan a los agregadores ayudar a los consumidores a tomar decisiones informadas, maximizar los beneficios de sus recursos de flexibilidad y contribuir al éxito general de las operaciones de la red. Esta tesis, a través de soluciones innovadoras y utilizando modelos de inteligencia artificial, aborda la integración de energías renovables, promoviendo una participación justa entre todos los proveedores de respuesta de la demanda. La tesis resulta en última instancia en un sistema de apoyo a la toma de decisiones innovador: MAESTRO, Machine learning Assisted Energy System management Tool for Renewable integration using demand respOnse. MAESTRO está compuesto por un conjunto de modelos diversificados que contribuyen juntos para manejar la complejidad de la gestión de comunidades energéticas con recursos de generación distribuida, proveedores de respuesta de la demanda, sistemas de almacenamiento de energía y vehículos eléctricos. Esta tesis de doctorado comprende un análisis exhaustivo de las técnicas de vanguardia, el diseño y desarrollo del sistema, los resultados experimentales y los hallazgos clave. En esta investigación se publicaron veintiséis artículos científicos, tanto en revistas internacionales como en actas de conferencias. Se lograron contribuciones a proyectos internacionales y proyectos portugueses. [POR] A produção distribuída, nomeadamente as tecnologias baseadas em energias renováveis, emergiram como um componente crucial na transição para mitigar os efeitos das alterações climáticas, proporcionando uma abordagem descentralizada à produção de eletricidade. No entanto, o comportamento volátil da geração distribuída criou desafios na manutenção do equilíbrio e da fiabilidade do sistema. Nesse contexto, surge o conceito de resposta à procura e os programas correspondentes, conferindo proeminência às comunidades energéticas locais. No conceito de resposta à procura, espera-se um empoderamento do consumidor no setor elétrico. Isso tem um impacto significativo nas operações da rede e gera interações complexas devido ao comportamento volátil, preocupações com a privacidade e falta de conhecimento dos consumidores no contexto do mercado energético. Para isso, os agregadores desempenham um papel crucial ao lidar com esses desafios. É fundamental desenvolver ferramentas que permitam aos agregadores ajudar os consumidores a tomar decisões informadas, maximizar os benefícios de seus recursos de flexibilidade e contribuir para o sucesso global das operações da rede. Esta tese de doutoramento, através de soluções inovadoras e recorrendo a modelos de inteligência artificial, aborda a integração de energias renováveis, promovendo uma participação justa entre todos os fornecedores de resposta à procura. A tese resulta, em última instância, num sistema inovador de apoio à tomada de decisões - MAESTRO, Machine learning Assisted Energy System management Tool for Renewable integration using demand respOnse. A ferramenta MAESTRO é composta por um conjunto de modelos diversificados que, em conjunto, contribuem para lidar com a complexidade da gestão de comunidades energéticas com recursos de geração distribuída, fornecedores de resposta à procura, sistemas de armazenamento de energia e veículos elétricos. Esta tese de doutoramento abrange uma análise abrangente de técnicas de ponta, design e desenvolvimento do sistema, resultados experimentais e descobertas-chave. Nesta pesquisa, foram publicados vinte e seis artigos científicos, tanto em revistas internacionais como em atas de conferências. Foram realizadas contribuições para projetos internacionais e projetos portugueses

Intermediation in Future Energy Markets: Innovative Product Design and Pricing

In order to mitigate the impacts of climate change, the international community envisages significant investments in electricity generation from renewable energy sources (RES). The integration of this decentralized and fluctuating type electricity generation poses several challenges to planning, operation, and economics of power systems. The established energy systems were originally designed for a centralized electricity generation that follows the uncontrolled but well predictable demand. However, for large shares of RES, relying only on the flexibility of the generation side would be economically inefficient. Furthermore, the environmental benefits of using RES would be depleted by additional carbon emissions from ramping highly flexible fossil-fueled power plants. An appealing alternative to facilitate the efficient integration of large shares of RES is to exploit the so far mainly passive demand side as an additional source of flexibility. The established centralized approaches can hardly handle the fine-grained and decentralized nature of demand side flexibility. Therefore, the intermediation between centralized control and decentralized demand will play a major role in future energy markets, which constitutes the overarching topic of this dissertation. Typically electricity generation from RES is capital-intensive but has near zero marginal costs. On this account, novel services need to be offered in order to transmit the right economic signals. To this end, the concept of the differentiable good electricity is refined in this dissertation. Embedded into the so-called energy service, characteristics such as temporal and spatial price differentiation or the risk of interruption can be specified to differentiate the so far homogeneous good. Based on the morphological design theory a framework for the notion of energy services is established and subsequently implemented as a decision support system. This supports a systematic and structured product development process to design innovative energy services. Such an innovative energy service is, e.g., the charging of electric vehicles in car parks, where prices are differentiated by job completion deadline. This allows the car park operator to control the aggregated load of all charging jobs to follow local RES generation. Based on this energy service the downstream activity of an intermediary is formally modeled as an optimization problem and evaluated by means of an empirical simulation experiment. The results provide insights on pricing policy and the value of demand side flexibility with regard to both the integration of local RES generation and operative profit optimization. In order to illustrate another innovative energy service the presented model is extended by the upstream activity of the intermediary. Household consumers are offered monetary incentives if they allow the intermediary to control their appliances. The results indicate the cost saving potential from demand side flexibility for the intermediary\u27s procurement of electricity. Beyond that, this model formulation constitutes the foundation for further examinations, e.g., to study the strategic behavior of intermediaries on real-time electricity markets that are prone to market power abuse due to low market liquidity