Retail and Wholesale Power Market Operations under Increased … · ISO up/down management of...
Transcript of Retail and Wholesale Power Market Operations under Increased … · ISO up/down management of...
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Auswin G. Thomasa and Leigh Tesfatsiona,b
{agthomas, tesfatsi}@iastate.edu
aElectrical & Computer Engineering Department
bEconomics Department
Iowa State University, Ames, Iowa
Retail and Wholesale Power Market Operations
under Increased Penetration of Price-Responsive Demand
PSERC Webinar
October 1, 2013
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Presentation Outline
Business case needed for demand response (DR)
Use of IRW Test Bed to explore DR business case
Integrated Retail & Wholesale (IRW) Power System Test Bed
http://www.econ.iastate.edu/tesfatsi/irwprojecthome.htm
Illustration: Price-responsive residential A/C loads
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Demand Response (DR)
DR has been used for three distinct concepts:
ISO up/down management of demand
Automated demand dispatch
Bottom-up retail customer price response
Main barrier to DR implementation to date has
been the lack of a compelling business model
(Oren, PSERC Webinar, 1 Feb 2011; Xie et al., PSERC Report 13-41, 2013)
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Compelling Business Model for DR
For Market Participants:
─ Provides economic incentives that sustain
voluntary participation
For ISO:
─ Sustains/improves reliability of operations
For Society:
─ Encourages more efficient energy usage
(less wastage of resources)
─ Reduces environmental pollution
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Testing of Business Models for DR
Must cross “valley of death” between theory & commerce
Valley of Death DOE Technology Readiness Levels 4–6 https://www.directives.doe.gov/directives/0413.3-EGuide-04a/view
─ TRL 4: Analytical/lab demonstration that basic technological
components work together as a system
─ TRL 5: System tested in reasonably realistic simulation
─ TRL 6: System tested in high-fidelity lab or simulated
operational environment
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IRW Test Bed: TRL 5
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Wholesale
Retail
bulk energy & prices
net loads
AMES Test Bed
Distribution Test Feeders
5-Bus 1-Feeder Example
Xx
xx
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AMES Wholesale Power Market Test Bed
AMES = Agent-based Modeling of Electricity Systems
AMES(V2.06) released as open-source software under GPL www.econ.iastate.edu/tesfatsi/AMESMarketHome.htm
Agent-based platform (Java/Python/Pyomo)
Simulates ISO-managed wholesale power market over AC grid
Agents include
– Decision-making entities (ISO, GenCos, LSEs,…)
– Institutions (day-ahead market, real-time market, regulations, …)
– Physical structures (AC transmission grid, loads, …)
Events driven by agent interactions, starting from initial conditions
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Activities of AMES ISO during a typical day D-1
00:00
11:00
16:00
23:00
Real-Time
Market
Day-Ahead Market
ISO collects energy bids &
offers from LSEs & GenCos.
ISO conducts SCUC/SCED to determine commitment, dispatch, & LMP schedule
for each hour of next day D.
ISO posts schedule for each hour of next day D.
Day-ahead settlement
Real-time
settlement
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Day-Ahead Market (DAM) Generation
Companies (GenCos)
Load Serving Entities (LSEs)
Real-Time Market (RTM)
Supply Offers
Demand Bids
Actual Demands
Retail Consumers
Economic Incentives for GenCos, LSEs, & Consumers
Retail Prices Received
Wholesale Level Retail Level
DAM/RTM Prices Received
DAM/RTM Prices Paid
Production/UC Costs Paid
Retail Prices Paid Actual
Supplies
ISO
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Illustrative Application:
IRW Case Study with Intelligent A/C Systems
An intelligent A/C system controller for households has
been developed
Solves for optimal 24-hour comfort/cost tradeoffs, given
anticipated prices & environmental conditions
IRW Test Bed is being used to study IRW effects when
some households have intelligent A/C system controllers
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IRW Test Bed Implementation of Case Study
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Intelligent A/C Controller
Comfort Cost
Prices Household Preferences
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Environmental Forcing Terms
Time (h)
Outside
Temperature
(oF)
Solar Heat
Flow Rate
(kBTU h )
Internal Heat
Flow Rate
(kBTU h )
Relative
Humidity
(%)
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Wholesale Prices Passed Thru to Households
Retail prices charged to retail energy customers on day D
given by DAM LMPs plus profit mark-up determined on D-1
Retail prices for day D conveyed by LSEs to households by
evening of day D-1
Retail
Price
(cents kWh )
Time (h) 14
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Attributes of Household Residents
Comfort function (utils) measuring household resident’s
comfort level as a function of inside air temperature
Bliss temperature = Inside air temperature providing
highest comfort to the at-home resident
α = Parameter (utils/$) measuring resident’s trade-off
between thermal comfort and electricity cost
(higher α higher concern for cost relative to comfort)
Home-occupancy times of the household resident
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Illustrative Results: Resident always home Higher α = Higher concern for cost; Bliss temp = 74oF
Inside Air
Temperature
(oF)
Time (h)
Low α
High α
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Resident away from home 8am - 5pm Higher α = Higher concern for cost; Bliss temp = 74oF
Inside Air
Temperature
(oF)
Low α
High α
Time (h) 17
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Non-Price-Responsive Load Intelligent A/C Load
Retail Price (cents kWh )
Time (h)
From single-household load to aggregated bus load
Time (h)
Power (MW)
Power (MW)
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IRW Case Study Specifications
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Distribution Feeder Many types of houses
Many types of
household residents
(differing α values)
Wholesale Power
System (AMES) 5 buses and 6 lines
2 LSEs serving only
conventional loads
(no price sensitivity)
1 LSE serving feeder
of price-sensitive and
conventional loads
5 GenCos
Feeder
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IRW Case Study Specifications…Continued
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Exogenously given state vector for each day
Weather conditions ─ Outside temperature profile
─ Profiles for other environmental forcing terms
Background (BG) conventional load profile
(not responsive to price changes)
LSE DAM demand bid method
Day D-1 actual load Day-D demand bid
Household comfort/cost preference parameters α
Set at random (uniformly distributed) values unless
otherwise indicated.
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IRW Feedback Loop Illustration
A/C Load
DAM
Prices
RTM Load
Retail Prices
LSE DAM
Load Forecasts
LSE DAM
Demand Bids
Weather
Conditions
Background (BG) Load:
Not Price Responsive
GenCo DAM
Supply Offers
Mark-up
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Illustrative Results:
RTM price at feeder bus (peak hour 18) under
varied forcing-term and retail-price conditions
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RTM price at feeder bus (peak hour 18)
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RTM price at feeder bus (peak hour 18)
* Variation in weather and BG load
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RTM price at feeder bus (peak hour 18)
* Variation in weather and BG load
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Ongoing Research
Additional intelligent A/C sensitivity testing of
resident attributes (α values, k values, …)
environmental attributes (weather,…)
house attributes (insulation levels, sizes,…)
Performance metrics for the DR business case
Newly installed High Performance Computing (HPC) cluster will permit
inclusion of distribution feeders at multiple buses
studies of multiple forms of DR
parallel processing implementation
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DR business-case metrics that the
IRW Test Bed can calculate
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Price volatility
GenCo profits (LMP payments – production/UC costs)
LSE profits (retail payment receipts – LMP costs)
Household resident net benefit from comfort/cost tradeoffs
ISO congestion rent (LMPs received – LMPs paid out)
Energy usage levels
Reliability of operations (e.g., need for reserve)
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IRW Project Publications
Auswin George Thomas, Pedram Jahangiri, Di Wu, Chengri Cai, Huan Zhao,
Dionysios C. Aliprantis, and Leigh Tesfatsion, “Intelligent Residential Air-Conditioning
System with Smart-Grid Functionality,” IEEE Transactions on Smart Grid, Vol. 3,
No. 4, December 2012, 2240-2251.
Auswin George Thomas, Chengrui Cai, Dionysios C. Aliprantis, and Leigh Tesfatsion,
“Effects of Price-Responsive Residential Demand on Retail and Wholesale Power
Market Operations”, Proceedings of the IEEE Power and Energy Society General
Meeting, San Diego, CA, July 22-26, 2012
Chengrui Cai, Pedram Jahangiri, Auswin George Thomas, Huan Zhao, Dionysios C.
Aliprantis, and Leigh Tesfatsion, “Agent-Based Simulation of Distribution Systems with
High Penetration of Photovoltaic Generation”, Proceedings of the IEEE Power and
Energy Society General Meeting, Detroit, MI, 2011
Huan Zhao, Auswin George Thomas, Pedram Jahangiri, Chengrui Cai, Leigh
Tesfatsion, and Dionysios C. Aliprantis, “Two Settlement Electric Power Markets with
Dynamic-Price Customers,” Proceedings of the IEEE Power and Energy Society
General Meeting, Detroit, MI, 2011
Auswin George Thomas, “Residential air-conditioning system with smart-grid
functionality,” M.S. Thesis, Iowa State U., 2012
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On-Line Resources
IRW Project Homepage
www.econ.iastate.edu/tesfatsi/IRWProjectHome.htm
AMES Test Bed Homepage (Code/Manuals/Publications)
www.econ.iastate.edu/tesfatsi/AMESMarketHome.htm
Agent-Based Electricity Market Research
www.econ.iastate.edu/tesfatsi/aelect.htm
Open Source Software for Electricity Market Research, Teaching, and Training
www.econ.iastate.edu/tesfatsi/electricoss.htm
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