An Integrated Dynamic Market Mechanism for Real-Time Markets and Frequency Regulation

Abstract

Abstract-The intermittent and uncertain nature of renewables represents a major challenge for large scale adoption of sustainable energy resources. Of particular concern is the need to maintain both quality of grid frequency and low costs of regulation reserves in the face of increasing fluctuations in renewables. To this end, we propose an integrated dynamic market mechanism (DMM) which combines real-time market and frequency regulation allowing market players, including renewable generators and flexible consumers, to iteratively negotiate electricity prices at the wholesale level while using the most recent information on the available wind power and the quality of grid frequency. Main features of the integrated DMM are (i) a Newton-Raphson-based method which leads to fast convergence to the optimal dispatch, (ii) use of an aggregated frequency error as a feedback signal for the negotiation process which leads to reduced regulation capacity requirements. The benefits of this DMM are illustrated via simulations on the IEEE 118 bus system.

A practical integration of automatic generation control and Demand Response

“…We utilize a solution method similar to the one found in [18], which is a Newton-like primal dual interior point method. We define the Hessian matrix as…”

“…One thing to notice about our control law is that the unmeasured disturbances ∆ i in (1) do not appear directly in any of the update equations (17)- (18). As outlined in the Introduction, these disturbances can only be detected through grid frequency.…”

“…We feed the ACE signal into the algorithm through the vector ρ in the power balance constraints (9). Recall that h(x k ) is used to update iterates (17)- (18). We update ρ k as…”

“…The effect of these scaling values on how quickly each DR resource recovers energy is explored in Section III. We then replace the DR resources' inequality constraints in (18) with…”

Optimal Scheduling and Real-Time State-of-Charge Management of Energy Storage System for Frequency Regulation

“…In recent years, many studies have focused on the ability of ESSs to enable frequency regulation, given that its ramp rate is higher than that of conventional resources. In [13], the authors proposed an alternative market structure with the ability to efficiently demand response (DR) and automatic generation control (AGC) and accommodate the intermittency and uncertainty that are concomitant in renewable generation, thereby leading to the efficient integration of renewables at the market level and reduced regulation requirements at the AGC level. This paper proposed an integrated dynamic market mechanism (DMM) that combined a real-time market clearing procedure with AGC.…”