Transforming Energy Networks via Peer to Peer Energy Trading: Potential of Game Theoretic Approaches

Peer-to-peer (P2P) energy trading has emerged as a next-generation energy management mechanism for the smart grid that enables each prosumer of the network to participate in energy trading with one another and the grid. This poses a significant challenge in terms of modeling the decision-making process of each participant with conflicting interest and motivating prosumers to participate in energy trading and to cooperate, if necessary, for achieving different energy management goals. Therefore, such decision-making process needs to be built on solid mathematical and signal processing tools that can ensure an efficient operation of the smart grid. This paper provides an overview of the use of game theoretic approaches for P2P energy trading as a feasible and effective means of energy management. As such, we discuss various games and auction theoretic approaches by following a systematic classification to provide information on the importance of game theory for smart energy research. Then, the paper focuses on the P2P energy trading describing its key features and giving an introduction to an existing P2P testbed. Further, the paper zooms into the detail of some specific game and auction theoretic models that have recently been used in P2P energy trading and discusses some important finding of these schemes.Comment: 38 pages, single column, double spac

Transition Support Mechanisms for Communities Facing Full or Partial Coal Power Plant Retirement in New York

New York State is undergoing a rapid and unprecedented energy transformation, particularly in the electricity sector. As new resources and technologies emerge to meet the demands of 21st century life, regulators must balance the need for cost effective and equitable participation in wholesale power markets while maintaining reliability on the grid. Furthermore, it is critical that all New Yorkers participate fully in the promise of a revitalized and equitable energy future. Such a transformation requires that the needs of all communities are factored into the polices and regulations that move New York toward the bold goals set forth under its Reforming the Energy Vision (REV) initiative. The precipitous drop in natural gas prices, the decreased costs of wind and solar energy, and the rise in the cost of coal, have contributed to the mothballing or retiring of coal-fired and nuclear energy generators across the country, including in New York. Communities that have been home to the electric generation units of the past, particularly struggling coal-fired power plants, are especially vulnerable during this transformation, because these communities often rely on the generators for tax revenues, such as through Payments in Lieu of Tax agreements. New York has the opportunity to ensure a just transition for these communities by adopting new, clean energy resources, technologies, and markets while fostering a trained and skilled workforce to support its ambitious goals. For all New Yorkers to enjoy the new energy future, leadership must address the impact of lost jobs, declining economic activity and lost tax revenue, and must support essential services in impacted communities with the same level of urgency and expansive vision needed to balance the integration of new technologies in the most cost effective manner to maintain grid reliability. At the same time, state and federal funding must be allocated to communities in transition for the remediation and redevelopment of shuttered power plant sites, and to provide the necessary support, training and tools for impacted communities to actively participate in the transition and implementation of clean energy resources. The first section of this report examines the lessons learned from other jurisdictions in when and how to address the fiscal challenges of retiring electric generation units (EGU’s). The challenges New York faces are not unlike the challenges faced by communities, legislators, and plant owners during periods of deindustrialization of the late 1960’s through 1980’s, described in Section One below, which additionally provides: 1. An evaluation of case studies that address the process of retirement, decommissioning, remediation and preparation for redevelopment for future use, along with the state and federal policies and funding sources that made revitalization possible. 2. An overview of case studies that illustrate local government fiscal and workforce support to communities during periods of plant transformation. These periods encompass three historical phases: a. Deindustrialization of the 1960’s to1980’s; b. Federally Mandated Social Programs to Support Enforcement of Federal Regulations 1990’s to 2000; and c. Coal Plant Closures and Community Transition in the Age of Carbon Emissions Reductions: Federal and State Initiatives between 2000 to 2015; and Section Two examines four New York coal-fired generators, some of which are currently mothballed, retired, or struggling financially. In addition to providing profiles of each generator, Section Two also describes the Payment in Lieu of Taxes (PILOT) agreements that these generators have entered into with the towns, school boards, and counties in whose jurisdictions they are located. Due to the plants’ finances, several of the generators have made reduced PILOT payments in recent years, creating “budget gaps” for some of the communities. Finally, Section Three describes state and federal funding and support mechanisms that may be available to the New York communities described in Section Two. Because each community faces unique challenges and opportunities, this report does not attempt to provide specific recommendations for any of the communities. Rather, Section Three lists a number of support mechanisms that each community could consider in developing its own transition plan. New York State leadership can capitalize on the legislative legacy of prior eras and develop comprehensive approaches to reinvest in communities with obsolete industrial facilities that were once the primary source of jobs and economic activity, and revenue to local budgets

Profitability analysis on demand-side flexibility: A review

Flexibility has emerged as an optimal solution to the increasing uncertainty in power systems produced by the continuous development and penetration of distributed generation based on renewable energy. Many studies have shown the benefits for system operators and stakeholders of diverse ancillary services derived from demand-side flexibility. Cost-benefit analysis on these flexibility services should be carried out to determine the profitable applications, as well as the required adjustments on energy market, price schemes and normative framework to maximize the positive impacts of the available flexibility. This paper endeavors to review the main topics, variables and indexes related to the profitability analysis on demand-side flexibility, as well as the influence of energy markets, pricing and standards on revenue maximization. The conclusions drawn from this review demonstrate that the profitability of flexibility services considerably de-pends on energy market structure, involved assets, electricity prices and current ancillary services remuneration.Peer ReviewedPostprint (published version

Realizing the potential of distributed energy resources and peer-to-peer trading through consensus-based coordination and cooperative game theory

Driven by environmental and energy security concerns, a large number of small-scale distributed energy resources (DERs) are increasingly being connected to the distribution network. This helps to support a cost-effective transition to a lower-carbon energy system, however, brings coordination challenges caused by variability and uncertainty of renewable energy resources (RES). In this setting, local flexible demand (FD) and energy storage (ES) technologies have attracted great interests due to their potential flexibility in mitigating the generation and demand variability and improving the cost efficiency of low-carbon electricity systems. The combined effect of deregulation and digitalization inspired new ways of exchanging electricity and providing management/services on the paradigm of peer-to-peer (P2P) and transparent transactions. P2P energy trading enables direct energy trading between prosumers, which incentivizes active participation of prosumer in the trading of electricity in the distribution network, in the meantime, the efficient usage of FD and ES owned by the prosumers also facilitates better local power and energy balance. Though the promising P2P energy trading brings numerous advancements, the existing P2P mechanisms either fail to coordinate energy in a fully distributed way or are unable to adequately incentivize prosumers to participate, preventing prosumers from accessing the highest achievable monetary benefits and/or suffering severely from the curse of dimensionality. Therefore, this thesis aims at proposing three P2P energy trading enabling mechanisms in the aspect of fully distributed efficient balanced energy coordination through consensus-based algorithm and two incentivizing pricing and benefit distribution mechanisms through cooperative game theory. Distributed, consensus-based algorithms have emerged as a promising approach for the coordination of DER due to their communication, computation, privacy and reliability advantages over centralized approaches. However, state-of-the-art consensus-based algorithms address the DER coordination problem in independent time periods and therefore are inherently unable to capture the time-coupling operating characteristics of FD and ES resources. This thesis demonstrates that state-of-the-art algorithms fail to converge when these time-coupling characteristics are considered. In order to address this fundamental limitation, a novel consensus-based algorithm is proposed which includes additional consensus variables. These variables express relative maximum power limits imposed on the FD and ES resources which effectively mitigate the concentration of the FD and ES responses at the same time periods and steer the consensual outcome to a feasible and optimal solution. The convergence and optimality of the proposed algorithm are theoretically proven while case studies numerically demonstrate its convergence, optimality, robustness to initialization and information loss, and plug-and-play adaptability. Moreover, this thesis proposes two computationally efficient pricing and benefit distribution mechanisms to construct a stable grand coalition of prosumers participating in P2P trading, founded on cooperative game-theoretic principles. The first one involves a benefit distribution scheme inspired by the core tatonnement process while the second involves a novel pricing mechanism based on the solution of single linear programming. The performance of the proposed mechanisms is validated against state-of-the-art mechanisms through numerous case studies using real-world data. The results demonstrate that the proposed mechanisms exhibit superior computational performance than the nucleolus and are superior to the rest of the examined mechanisms in incentivizing prosumers to remain in the grand coalition.Open Acces

A Mutually Beneficial Operation Framework for Virtual Power Plants and Electric Vehicle Charging Stations

10.13039/501100001809-National Natural Science Foundation of China (Grant Number: 72071100); Young Elite Scientist Sponsorship Program by CSEE (Grant Number: CSEE-YESS-2020027); Shenzhen Basic Research Program (Grant Number: JCYJ20210324104410030)

GHG mitigation in Australia: an overview of the current policy landscape

This report outlines Australia’s policy framework for greenhouse gas emissions reduction, identifies areas of potential change in the near term, and attempts to evaluate the impact of current policies on Australia’s emissions trajectory to 2020. It assesses Australia’s international commitments, and the major policies of federal and state institutions to reduce emissions. It also assesses the likely success of these policies in achieving Australia’s emissions reduction goals.Authored by Olivia Kember and Erwin Jackson with Merry Chandra

A Mutually Beneficial Operation Framework for Virtual Power Plants and Electric Vehicle Charging Stations

10.13039/501100001809-National Natural Science Foundation of China (Grant Number: 72071100); Young Elite Scientist Sponsorship Program by CSEE (Grant Number: CSEE-YESS-2020027); Shenzhen Basic Research Program (Grant Number: JCYJ20210324104410030)

Economic Operation of Virtual Power Plants with Electric Vehicle Charging Stations

Energy management of distributed energy resources (DERs) is challenging due to the distributed and uncertain nature of DERs. To optimally operate DERs and trade their energy as well as energy flexibility for financial benefits, energy management for virtual power plants (VPPs) and electric vehicle (EV) charging stations are investigated in this thesis. The research in this thesis can be summarized into three parts. Part I provides a VPP operation strategy in the electricity market environment. Part II proposes an EV charging station operation strategy considering EV user incentives. Part III develops a coordinated VPP and EV charging station operation framework based on the methods proposed in parts I and II. (1) Economic VPP operation In this part, an optimal VPP operation regime is proposed considering multiple electricity markets and multiple uncertainties. The proposed operation regime handles both the VPP market bidding and unit dispatching problems. To deal with uncertainties, a hybrid stochastic minimax regret optimization model is proposed. To reduce the conservativeness of the formulated optimization models, a self-adaptive algorithm is proposed. (2) Economic EV charging station operation In this part, an EV charging station operation strategy with an EV user incentive program is proposed to improve the EV charging station economic benefit. To maximize the long-term profit of the EV charging station, an optimal incentive price selection model is developed. In the solution methodology, a problem linearization method is first proposed. Then, a distributed solution methodology is developed based on the proposed adaptive alternating-direction-methodof-multipliers algorithm. (3) Economic VPP operation considering EV charging stations i In this part, a multi-stakeholder VPP-charging station system is investigated. Firstly, a coordinated operation framework is proposed for the VPP-charging station system to maximize the total benefit of the system. Then, an improved EV user incentive program is proposed for acquiring EV energy flexibility. At the cost allocation stage, a τ -value cost allocation method is developed. To alleviate the computation burden in calculating the τ -values, a τ -values estimation approach is proposed. The effectiveness of the energy management methods proposed in this thesis is verified through theoretical analysis and numerical simulations. Significant results suggest high potential for practical application in certain scenarios

Prosumer communities and relationships in smart grids: A literature review, evolution and future directions

Smart grids are robust, self-healing networks that allow bidirectional propagation of energy and information within the utility grid. This introduces a new type of energy user who consumes, produces, stores and shares energy with other grid users. Such a user is called a "prosumer." Prosumers' participation in the smart grid is critical for the sustainability and long-term efficiency of the energy sharing process. Thus, prosumer management has attracted increasing attention among researchers in recent years. This paper systematically examines the literature on prosumer community based smart grid by reviewing relevant literature published from 2009 to 2018 in reputed energy and technology journals. We specifically focus on two dimensions namely prosumer community groups and prosumer relationships. Based on the evaluated literature, we present eight propositions and thoroughly describe several future research directions