An Artificial Intelligence Framework for Bidding Optimization with Uncertainty inMultiple Frequency Reserve Markets

The global ambitions of a carbon-neutral society necessitate a stable and robust smart grid that capitalises on frequency reserves of renewable energy. Frequency reserves are resources that adjust power production or consumption in real time to react to a power grid frequency deviation. Revenue generation motivates the availability of these resources for managing such deviations. However, limited research has been conducted on data-driven decisions and optimal bidding strategies for trading such capacities in multiple frequency reserves markets. We address this limitation by making the following research contributions. Firstly, a generalised model is designed based on an extensive study of critical characteristics of global frequency reserves markets. Secondly, three bidding strategies are proposed, based on this market model, to capitalise on price peaks in multi-stage markets. Two strategies are proposed for non-reschedulable loads, in which case the bidding strategy aims to select the market with the highest anticipated price, and the third bidding strategy focuses on rescheduling loads to hours on which highest reserve market prices are anticipated. The third research contribution is an Artificial Intelligence (AI) based bidding optimization framework that implements these three strategies, with novel uncertainty metrics that supplement data-driven price prediction. Finally, the framework is evaluated empirically using a case study of multiple frequency reserves markets in Finland. The results from this evaluation confirm the effectiveness of the proposed bidding strategies and the AI-based bidding optimization framework in terms of cumulative revenue generation, leading to an increased availability of frequency reserves

A Virtual Power Plant Solution for Aggregating Photovoltaic Systems and Other Distributed Energy Resources for Northern European Primary Frequency Reserves

Primary frequency reserves in Northern Europe have traditionally been provided with hydro plants and fossil fuel-burning spinning reserves. Recently, smart distributed energy resources have been equipped with functionality needed to participate on frequency reserves. Key categories of such resources include photovoltaic systems, batteries, and smart loads. Most of these resources are small and cannot provide the minimum controllable power required to participate on frequency reserves. Thus, virtual power plants have been used to aggregate the resources and trade them on the frequency reserves markets. The information technology aspects of virtual power plants are proprietary and many of the details have not been made public. The first contribution of this article is to propose a generic data model and application programming interface for a virtual power plant with the above-mentioned capabilities. The second contribution is to use the application programming interface to cope with the unpredictability of thefrequency reserve capacity that the photovoltaic systems and other distributed energy resources are able to provide to the frequency reserves markets in the upcoming bidding period. The contributions are demonstrated with an operational virtual power plant installation at a Northern European shopping center, aggregating photovoltaic Primary Frequency Reserves resources.Peer reviewe