A Dynamic Market Mechanism for the Integration of Renewables and Demand Response

Abstract

Abstract-The most formidable challenge in assembling a Smart Grid is the integration of a high penetration of renewables. Demand Response, a largely promising concept, is increasingly discussed as a means to cope with the intermittent and uncertain renewables. In this paper, we propose a dynamic market mechanism that reaches the market equilibrium through continuous negotiations between key market players. In addition to incorporating renewables, this market mechanism also incorporates a quantitative taxonomy of demand response devices, based on the inherent magnitude, run-time, and integral constraints of demands. The dynamic market mechanism is evaluated on an IEEE 118 Bus system, a high fidelity simulation model of the Midwestern United States power grid. The results show how the proposed mechanism can be utilized to determine combinations of demand response devices in the presence of intermittent and uncertain renewables with varying levels of penetration so as to result in a desired level of Social Welfare.

LEM for DERs and flexible loads

“…1. The LEM includes market operator, local energy prosumers and consumers [36,37]. The market allows DERs to be shared between prosumers and flexible consumers.…”

“…(iii) An iterative clearing approach is proposed for the LEM. Owing to the centralised clearing approach has the disadvantage of being difficult to expand and violating users' privacy [35,36], the distributed clearing approach is proposed to help players to increase their benefits by trading parameters adjustment and the iteration process. Moreover, it could also protect players' privacy by only requiring the trading parameters instead of their detailed preferences.…”

A Method for Distributed Transactive Control in Power Systems based on the Projected Consensus Algorithm

“…Recently, some strategies has been proposed for design decentralized feedback controllers that steer the system to the optimal solution without explicitly solving the economic dispatch problem (Li et al, 2016), there are also some approaches that consider a more complete power flow problem in a distributed fashion with communications constraints and losses of control signals (Dall'Anese et al, 2016). Furthermore, several demand-response strategies have been proposed to solve the economic dispatch problem with changes in the load and the generation (Knudsen et al, 2016;Shiltz et al, 2016;Bejestani et al, 2014). In this context, transactive control has been shown effective to assure coordination of a vast number of devices, including smart loads (Kok and Widergren, 2016).…”

Robust and dynamic transactive energy system using Tsypkin–Polyak theorem

“…This mechanism reaches the optimal market equilibrium through continuous negotiations between agents. In [17, 18], a dynamic transactive energy system is proposed which facilitates renewable integration in the electrical grid, the participation of consumers with shiftable DSM, and participation of consumers with adjustable DSM. In [19], a cooperative and distributed algorithm for transactive energy system of an SG, populated with DGs and responsive demands, is proposed, which converges to the global optimum point of the electrical grid without a central controller.…”