Maximising revenue for non-firm distributed wind generation with energy storage in an active management scheme

The connection of high penetrations of renewable generation such as wind to distribution networks requires new active management techniques. Curtailing distributed generation during periods of network congestion allows for a higher penetration of distributed wind to connect, however, it reduces the potential revenue from these wind turbines. Energy storage can be used to alleviate this and the store can also be used to carry out other tasks such as trading on an electricity spot market, a mode of operation known as arbitrage. The combination of available revenue streams is crucial in the financial viability of energy storage. This study presents a heuristic algorithm for the optimisation of revenue generated by an energy storage unit working with two revenue streams: generation-curtailment reduction and arbitrage. The algorithm is used to demonstrate the ability of storage to generate revenue and to reduce generation curtailment for two case study networks. Studies carried out include a single wind farm and multiple wind farms connected under a 'last-in-first-out' principle of access. The results clearly show that storage using both operating modes increases revenue over either mode individually. Moreover, energy storage is shown to be effective at reducing curtailment while increasing the utilisation of circuits linking the distribution and transmission networks. Finally, renewable subsidies are considered as a potential third revenue stream. It is interesting to note that under current market agreements such subsidies have the potential to perversely encourage the installation of inefficient storage technologies, because of increased losses facilitating greater "utilisation" of renewable generation

A virtual power plant model for time-driven power flow calculations

This paper presents the implementation of a custom-made virtual power plant model in OpenDSS. The goal is to develop a model adequate for time-driven power flow calculations in distribution systems. The virtual power plant is modeled as the aggregation of renewable generation and energy storage connected to the distribution system through an inverter. The implemented operation mode allows the virtual power plant to act as a single dispatchable generation unit. The case studies presented in the paper demonstrate that the model behaves according to the specified control algorithm and show how it can be incorporated into the solution scheme of a general parallel genetic algorithm in order to obtain the optimal day-ahead dispatch. Simulation results exhibit a clear benefit from the deployment of a virtual power plant when compared to distributed generation based only on renewable intermittent generation.Peer ReviewedPostprint (published version

Optimization of the operation of smart rural grids through a novel rnergy management system

The paper proposes an innovative Energy Management System (EMS) that optimizes the grid operation based on economic and technical criteria. The EMS inputs the demand and renewable generation forecasts, electricity prices and the status of the distributed storages through the network, and solves with an optimal quarter-hourly dispatch for controllable resources. The performance of the EMS is quantified through diverse proposed metrics. The analyses were based on a real rural grid from the European FP7 project Smart Rural Grid. The performance of the EMS has been evaluated through some scenarios varying the penetration of distributed generation. The obtained results demonstrate that the inclusion of the EMS from both a technical point of view and an economic perspective for the adopted grid is justified. At the technical level, the inclusion of the EMS permits us to significantly increase the power quality in weak and radial networks. At the economic level and from a certain threshold value in renewables’ penetration, the EMS reduces the energy costs for the grid participants, minimizing imports from the external grid and compensating the toll to be paid in the form of the losses incurred by including additional equipment in the network (i.e., distributed storage).Postprint (published version

Maximising the benefit of distributed wind generation through intertemporal Active Network Management

The role of distribution networks is changing. There is a significant drive, influenced by climate change and security of supply issues, to move electricity generation towards renewable technologies. This is leading to an increase in demand for renewable generation connections at the distribution network level and putting pressure on distribution network operators to change the 'fit-and-forget' philosophy of network operation to include more active approaches. In the UK this is seen through the development of Active Network Management schemes which manage distributed generation in real-time, applying constraints when required to maintain network limits. In parallel, technologies have been developed that are capable of providing intertemporal flexibility, of which two particular examples are energy storage and flexible demand. The objective of the thesis is to answer the questions: How can energy storage and flexible demand be scheduled in a second-generation Active Network Management scheme? And how should they be operated to gain most benefit from distributed wind generation? To answer these questions, the thesis develops and uses tools to study the optimisation of second-generation Active Network Management schemes including intertemporal technologies. The tools developed include a Dynamic Optimal Power Flow algorithm for management of energy storage and flexible demand. The thesis provides the first fully flexible model of energy storage in this context, the first implementation of principles-of-access in an optimal power flow, and the first detailed study of the role of energy storage and flexible demand in managing thermal limits and reducing curtailment of distributed wind generation. The thesis also develops the theory of Dynamic Locational Marginal Pricing based on the economic information contained in an optimal solution to a Dynamic Optimal Power Flow. The thesis shows this to be a useful way of understanding the economic impact of intertemporal flexibility and monetary flows in markets which contain them. The thesis goes on to provide a detailed report of the application of Dynamic Optimal Power Flow and Dynamic Locational Marginal Pricing to an islanded Active Network Management scheme currently in deployment in the UK. This highlights the ability of the tools developed to contribute to future projects. A conclusions of the thesis is that DOPF provides a useful method of scheduling flexible devices such as energy storage and power systems. It takes full account of network constraints and limitations, and as applied in this thesis, the most complete models of the intertemporal effects of energy storage and flexible demand to date. The studies contained in the thesis show that energy storage and flexible demand can increase the benefit of distributed wind generation in Active Network Management by minimising curtailment and transferring generated electricity to periods during which the energy has greatest value in offsetting expensive, fossil fuel based generation. The thesis notes the importance of a useful definition of the 'benefit' of wind generation in terms of global objectives such as minimising emissions rather than interim objectives such as maximising generation from renewables. The thesis discusses the importance of losses in energy storage, and the relationship of storage and network losses with curtailment of wind and the lost opportunity of generating electricity. In terms of losses, the extension of existing economic analysis methods leads to the result that flexibility will only operate between time-steps where the ratio of prices is greater than the round-trip losses of the store. Within this constraint, effective use of energy storage is shown to result from regular charging and discharging. The comparison between energy storage and flexible demand shows that where there are few losses associated with flexibility in demand it is significantly more successful than energy storage at mitigating the effects of variability in wind. The final study of an islanded distribution network with wind curtailment, concludes that energy storage is less effective that flexible demand at reducing wind curtailment, but can provide benefit through management of peak demand. Flexible demand, in the form of flexible domestic electric heating, is shown to have the ability to provide a significant benefit in terms of reduced wind curtailment. This ability is further enhanced for island situations if demand has a frequency-responsive component.The role of distribution networks is changing. There is a significant drive, influenced by climate change and security of supply issues, to move electricity generation towards renewable technologies. This is leading to an increase in demand for renewable generation connections at the distribution network level and putting pressure on distribution network operators to change the 'fit-and-forget' philosophy of network operation to include more active approaches. In the UK this is seen through the development of Active Network Management schemes which manage distributed generation in real-time, applying constraints when required to maintain network limits. In parallel, technologies have been developed that are capable of providing intertemporal flexibility, of which two particular examples are energy storage and flexible demand. The objective of the thesis is to answer the questions: How can energy storage and flexible demand be scheduled in a second-generation Active Network Management scheme? And how should they be operated to gain most benefit from distributed wind generation? To answer these questions, the thesis develops and uses tools to study the optimisation of second-generation Active Network Management schemes including intertemporal technologies. The tools developed include a Dynamic Optimal Power Flow algorithm for management of energy storage and flexible demand. The thesis provides the first fully flexible model of energy storage in this context, the first implementation of principles-of-access in an optimal power flow, and the first detailed study of the role of energy storage and flexible demand in managing thermal limits and reducing curtailment of distributed wind generation. The thesis also develops the theory of Dynamic Locational Marginal Pricing based on the economic information contained in an optimal solution to a Dynamic Optimal Power Flow. The thesis shows this to be a useful way of understanding the economic impact of intertemporal flexibility and monetary flows in markets which contain them. The thesis goes on to provide a detailed report of the application of Dynamic Optimal Power Flow and Dynamic Locational Marginal Pricing to an islanded Active Network Management scheme currently in deployment in the UK. This highlights the ability of the tools developed to contribute to future projects. A conclusions of the thesis is that DOPF provides a useful method of scheduling flexible devices such as energy storage and power systems. It takes full account of network constraints and limitations, and as applied in this thesis, the most complete models of the intertemporal effects of energy storage and flexible demand to date. The studies contained in the thesis show that energy storage and flexible demand can increase the benefit of distributed wind generation in Active Network Management by minimising curtailment and transferring generated electricity to periods during which the energy has greatest value in offsetting expensive, fossil fuel based generation. The thesis notes the importance of a useful definition of the 'benefit' of wind generation in terms of global objectives such as minimising emissions rather than interim objectives such as maximising generation from renewables. The thesis discusses the importance of losses in energy storage, and the relationship of storage and network losses with curtailment of wind and the lost opportunity of generating electricity. In terms of losses, the extension of existing economic analysis methods leads to the result that flexibility will only operate between time-steps where the ratio of prices is greater than the round-trip losses of the store. Within this constraint, effective use of energy storage is shown to result from regular charging and discharging. The comparison between energy storage and flexible demand shows that where there are few losses associated with flexibility in demand it is significantly more successful than energy storage at mitigating the effects of variability in wind. The final study of an islanded distribution network with wind curtailment, concludes that energy storage is less effective that flexible demand at reducing wind curtailment, but can provide benefit through management of peak demand. Flexible demand, in the form of flexible domestic electric heating, is shown to have the ability to provide a significant benefit in terms of reduced wind curtailment. This ability is further enhanced for island situations if demand has a frequency-responsive component

Accelerating renewable connections through coupling demand and distributed generation

The objective of this paper is to investigate the options for using local demand to accelerate the connection of renewable Distributed Generation (DG) capacity. It presents a range of architectures for operating Distributed Energy Systems (DESs) that contain local demand and distributed generation. The concept of a DES is that demand is supplied by local DG either using privately owned distribution assets or a public distribution network owned by a Distribution Network Operator (DNO). Operation of a DES can help manage variability in DG output, reduce curtailment in Active Network Management (ANM) schemes, and assist the DNO in managing network constraints. They also provide a move towards local trading of electricity with potential financial and non-financial benefits to both distributed generators and local demand customers

An Optimized Combination of a Large Grid Connected PV System along with Battery Cells and a Diesel Generator

Environmental, economical and technical benefits of photovoltaic (PV) systems make them to be used in many countries. The main characteristic of PV systems is the fluctuations of their output power. Hence, high penetration of PV systems into electric network could be detrimental to overall system performance. Furthermore, the fluctuations in the output power of PV systems make it difficult to predict their output, and to consider them in generation planning of the units. The main objective of this paper is to propose a hybrid method which can be used to control and reduce the power fluctuations generated from large grid- connected PV systems. The proposed method focuses on using a suitable storage battery along with curtailment of the generated power by operating the PV system below the maximum power point (MPP) and deployment of a diesel generator. These methods are analyzed to investigate the impacts of implementing them on the economical benefits that the PV system owner could gain. To maximize the revenues, an optimization problem is solved

Strategic distribution network planning with smart grid technologies

This paper presents a multiyear distribution network planning optimization model for managing the operation and capacity of distribution systems with significant penetration of distributed generation (DG). The model considers investment in both traditional network and smart grid technologies, including dynamic line rating, quadrature-booster, and active network management, while optimizing the settings of network control devices and, if necessary, the curtailment of DG output taking into account its network access arrangement (firm or non-firm). A set of studies on a 33 kV real distribution network in the U.K. has been carried out to test the model. The main objective of the studies is to evaluate and compare the performance of different investment approaches, i.e., incremental and strategic investment. The studies also demonstrate the ability of the model to determine the optimal DG connection points to reduce the overall system cost. The results of the studies are discussed in this paper