Consensus-based approach to peer-to-peer electricity markets with product differentiation

With the sustained deployment of distributed generation capacities and the more proactive role of consumers, power systems and their operation are drifting away from a conventional top-down hierarchical structure. Electricity market structures, however, have not yet embraced that evolution. Respecting the high-dimensional, distributed and dynamic nature of modern power systems would translate to designing peer-to-peer markets or, at least, to using such an underlying decentralized structure to enable a bottom-up approach to future electricity markets. A peer-to-peer market structure based on a Multi-Bilateral Economic Dispatch (MBED) formulation is introduced, allowing for multi-bilateral trading with product differentiation, for instance based on consumer preferences. A Relaxed Consensus+Innovation (RCI) approach is described to solve the MBED in fully decentralized manner. A set of realistic case studies and their analysis allow us showing that such peer-to-peer market structures can effectively yield market outcomes that are different from centralized market structures and optimal in terms of respecting consumers preferences while maximizing social welfare. Additionally, the RCI solving approach allows for a fully decentralized market clearing which converges with a negligible optimality gap, with a limited amount of information being shared.Comment: Accepted for publication in IEEE Transactions on Power System

Review of trends and targets of complex systems for power system optimization

Optimization systems (OSs) allow operators of electrical power systems (PS) to optimally operate PSs and to also create optimal PS development plans. The inclusion of OSs in the PS is a big trend nowadays, and the demand for PS optimization tools and PS-OSs experts is growing. The aim of this review is to define the current dynamics and trends in PS optimization research and to present several papers that clearly and comprehensively describe PS OSs with characteristics corresponding to the identified current main trends in this research area. The current dynamics and trends of the research area were defined on the basis of the results of an analysis of the database of 255 PS-OS-presenting papers published from December 2015 to July 2019. Eleven main characteristics of the current PS OSs were identified. The results of the statistical analyses give four characteristics of PS OSs which are currently the most frequently presented in research papers: OSs for minimizing the price of electricity/OSs reducing PS operation costs, OSs for optimizing the operation of renewable energy sources, OSs for regulating the power consumption during the optimization process, and OSs for regulating the energy storage systems operation during the optimization process. Finally, individual identified characteristics of the current PS OSs are briefly described. In the analysis, all PS OSs presented in the observed time period were analyzed regardless of the part of the PS for which the operation was optimized by the PS OS, the voltage level of the optimized PS part, or the optimization goal of the PS OS.Web of Science135art. no. 107

System of Systems Based Decision-Making for Power Systems Operation

A modern power system is composed of many individual entities collaborating with each other to operate the entire system in a secure and economic manner. These entities may have different owners and operators with their own operating rules and policies, and it complicates the decision-making process in the system. In this work, a system of systems (SoS) engineering framework is presented for optimally operating the modern power systems. The proposed SoS framework defines each entity as an independent system with its own regulations, and the communication and process of information exchange between the systems are discussed. Since the independent systems are working in an interconnected system, the operating condition of one may impact the operating condition of others. According to the independent systems’ characteristics and connection between them, an optimization problem is formulated for each independent system. In order to solve the optimization problem of each system and to optimally operate the entire SoS-based power system, a decentralized decision-making algorithm is developed. Using this algorithm, only a limited amount of information is exchanged among different systems, and the operators of independent systems do not need to exchange all the information, which may be commercially sensitive, with each other. In addition, applying chance-constrained stochastic programming, the impact of uncertain variables, such as renewable generation and load demands, is modeled in the proposed SoS-based decision-making algorithm. The proposed SoS-based decision-making algorithm is applied to find the optimal and secure operating point of an active distribution grid (ADG). This SoS framework models the distribution company (DISCO) and microgrids (MGs) as independent systems having the right to work based on their own operating rules and policies, and it coordinates the DISCO and MGs operating condition. The proposed decision-making algorithm is also performed to solve the security-constrained unit commitment incorporating distributed generations (DGs) located in ADGs. The independent system operator (ISO) and DISCO are modeled as self-governing systems, and competition and collaboration between them are explained according to the SoS framework

Electricity transmission: an overview of the current debate

Electricity transmission has emerged as critical for successfully liberalising powermarkets. This paper surveys the issues currently under discussion and provides a framework for the remaining papers in this issue. We conclude that signalling the efficient location of generation investment might require even a competitive LMP system to be complemented with deep connection charges. Although a Europe-wide LMP system is desirable, it appears politically problematic, so an integrated system of market coupling, possibly evolving by voluntary participation, should have high priority. Merchant investors may be able to increase interconnector capacity, although this is not unproblematic and raises new regulatory issues. A key issue that needs further research is how to better incentivize TSOs, especially with respect to cross-border issues