Bi-Level Optimization for Available Transfer Capability Evaluation in Deregulated Electricity Market

Mustafa

Int Trans Electr Energ Syst

et al. 2019

Summary The ceaseless efforts by power system industries to promote sustainable and competitive electric power market structure in the deregulated environment have given rise to enormous research in the area of transfer capability of transmission networks. Due to high demand for electricity, transmission components are stressed to operate close to their operating limits, and this leads to a decrease in transmission efficiency. To address this issue, efficient evaluation of available transfer capability (ATC) is crucial for system planning, operation, and control. Several approaches have been proposed for ATC computation. Surprisingly, a comprehensive literature review on ATC computation is yet to be efficiently presented. Researchers have been able to come up with fast algorithms, but most of these algorithms are not accurate, and the presented accurate techniques are not fast enough for online applications. This paper presents a comprehensive review of the different approaches for ATC determination. It provides the concepts, methods, and the features of the ATC. For each technique, the state of the art of the several contributions made by researchers has been highlighted. This review reveals that there are issues regarding ATC calculation methods that need attention: the development of fast and accurate algorithm incorporating system dynamics and system uncertainties in ATC determination. Additionally, efforts on the incorporation of renewable energy generation in the ATC evaluation need to be intensified. This review will serve as one in all for researchers as well as a guide for the entrants in this field.

Section: Available Transfer Capability Determination Methodsmentioning

confidence: 99%

Section: Available Transfer Capability Determination Methodsmentioning

confidence: 99%

Available transfer capability calculation methods: A comprehensive review

Mustafa

Int Trans Electr Energ Syst

et al. 2019

“…In the proposed DRX mechanism, the users get paid by the aggregator for their DR capable loads. To solve the DRX integrated market clearing model, a bi-level optimization technique has been used [26,40]. The DR supply offer is made available in a separate DRX market at the lower-level.…”

Section: Problem Formulationmentioning

confidence: 99%

The Role of Demand Response Aggregators and the Effect of GenCos Strategic Bidding on the Flexibility of Demand

Mohammad

Mishra

2018

Energies

This paper presents an interactive trading decision between an electricity market operator, generation companies (GenCos), and the aggregators having demand response (DR) capable loads. Decisions are made hierarchically. At the upper-level, an electricity market operator (EMO) aims to minimise generation supply cost considering a DR transaction cost, which is essentially the cost of load curtailment. A DR exchange operator aims to minimise this transaction cost upon receiving the DR offer from the multiple aggregators at the lower level. The solution at this level determines the optimal DR amount and the load curtailment price. The DR considers the end-user’s willingness to reduce demand. Lagrangian duality theory is used to solve the bi-level optimisation. The usefulness of the proposed market model is demonstrated on interconnection of the Pennsylvania-New Jersey-Maryland (PJM) 5-Bus benchmark power system model under several plausible cases. It is found that the peak electricity price and grid-wise operation expenses under this DR trading scheme are reduced.

“…ε are the auxiliary binary variables [27][28][29][30]. The forecast uncertainty of other power plants offers can be modeled through a set of the probabilistic scenarios.…”

Section: Mixed-integer Linear Programmingmentioning

confidence: 99%

Strategic Offering for Wind Power Producers Considering Energy and Flexible Ramping Products

Fang

Krishnan

2018

Energies

Self Cite

The increasing deployments of renewable generation methods, such as wind, affects the flexibility of electric power system operating due to their inherent variability and uncertainty. To mitigate this, power systems need flexible resources. This paper investigates the potential for wind power to provide flexible ramping products in the real-time market, an additional value stream to the energy it provides. The proposed model for wind power's strategic offering is formulated as a bi-level optimization problem with wind profit maximization at the upper level and the independent system operator's economic dispatch-considering both the energy balance and the flexible ramping requirement to counter uncertainty-at the lower level. This bi-level model is converted to a mathematical program with equilibrium constraints (MPEC) by recasting the lower level problem with its Karush-Kuhn-Tucker optimality conditions. Then, through strong duality theory and the big-M method, the MPEC model is converted to a mixed-integer linear programming model. The opportunity cost and the price for wind power-providing ramping products are analyzed. Numerical examples based on a 5-bus network are presented to verify the proposed model and concept.