Demand Response Resource Allocation Method Using Mean-Variance Portfolio Theory for Load Aggregators in the Korean Demand Response Market

Chae, Jaeyong; Joo, Sung Kwan

doi:10.3390/en10070879

Cited by 6 publications

(7 citation statements)

References 16 publications

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“…DERs co-located and integrated with energy storage can augment reliability and resiliency of electric grids on a local scale as well as for critical loads [7][8][9]. Loads can be effective in mitigating congestion issues that occur when the capacity of some distribution lines are overloaded [10].…”

Section: Introductionmentioning

confidence: 99%

Electrolyzers Enhancing Flexibility in Electric Grids

et al. 2017

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This paper presents a real-time simulation with a hardware-in-the-loop (HIL)-based approach for verifying the performance of electrolyzer systems in providing grid support. Hydrogen refueling stations may use electrolyzer systems to generate hydrogen and are proposed to have the potential of becoming smarter loads that can proactively provide grid services. On the basis of experimental findings, electrolyzer systems with balance of plant are observed to have a high level of controllability and hence can add flexibility to the grid from the demand side. A generic front end controller (FEC) is proposed, which enables an optimal operation of the load on the basis of market and grid conditions. This controller has been simulated and tested in a real-time environment with electrolyzer hardware for a performance assessment. It can optimize the operation of electrolyzer systems on the basis of the information collected by a communication module. Real-time simulation tests are performed to verify the performance of the FEC-driven electrolyzers to provide grid support that enables flexibility, greater economic revenue, and grid support for hydrogen producers under dynamic conditions. The FEC proposed in this paper is tested with electrolyzers, however, it is proposed as a generic control topology that is applicable to any load.

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Section: Introductionmentioning

confidence: 99%

Electrolyzers Enhancing Flexibility in Electric Grids

et al. 2017

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“…Maximum charge power (MW) 0.5 Initial capacity (MWh) 1.0 Total capacity (MWh) 5.5 We consider that load aggregators (LAs) [39][40][41] operate in our research district. LA provides a significant load reduction capacity to power network, according to dispatching commands by implementing the corresponding control measures to electricity consumers with thermostatically controllable devices.…”

Section: Parameters Valuesmentioning

confidence: 99%

Optimal Dispatching of Active Distribution Networks Based on Load Equilibrium

Han

Zhou

et al. 2017

Energies

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This paper focuses on the optimal intraday scheduling of a distribution system that includes renewable energy (RE) generation, energy storage systems (ESSs), and thermostatically controlled loads (TCLs). This system also provides time-of-use pricing to customers. Unlike previous studies, this study attempts to examine how to optimize the allocation of electric energy and to improve the equilibrium of the load curve. Accordingly, we propose a concept of load equilibrium entropy to quantify the overall equilibrium of the load curve and reflect the allocation optimization of electric energy. Based on this entropy, we built a novel multi-objective optimal dispatching model to minimize the operational cost and maximize the load curve equilibrium. To aggregate TCLs into the optimization objective, we introduced the concept of a virtual power plant (VPP) and proposed a calculation method for VPP operating characteristics based on the equivalent thermal parameter model and the state-queue control method. The Particle Swarm Optimization algorithm was employed to solve the optimization problems. The simulation results illustrated that the proposed dispatching model can achieve cost reductions of system operations, peak load curtailment, and efficiency improvements, and also verified that the load equilibrium entropy can be used as a novel index of load characteristics.

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“…Thus, the importance of identifying an optimal DER portfolio increases. On the other hand, finding optimal resources allocation of demand response is also studied in [12][13][14]. Markowitz's portfolio theory is generally applied to obtain a mean-variance portfolio of demand-response resources [12].…”

mentioning

confidence: 99%

“…On the other hand, finding optimal resources allocation of demand response is also studied in [12][13][14]. Markowitz's portfolio theory is generally applied to obtain a mean-variance portfolio of demand-response resources [12]. A two-level gaming approach was made for the optimal demand response management with multiple utilities and users [13].…”

mentioning

confidence: 99%

“…Consequently, the MG operator tends to invest in new DERs to support the MG operation. However, the VPP operator aggregates and allocates DERs that are already installed into several portfolios.The mean-variance portfolio theorem proposed in [12] can be used to determine the optimal portfolio of VPPs. However, because the operation of dispatchable resources (e.g., ESS, DG) varies with RESs that are in the same VPP, the revenue of the dispatchable resources varies with the portfolio.…”

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confidence: 99%

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Stochastic Mixed-Integer Programming (SMIP)-Based Distributed Energy Resource Allocation Method for Virtual Power Plants

Joo

2019

Energies

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Virtual power plants (VPPs) have been widely researched to handle the unpredictability and variable nature of renewable energy sources. The distributed energy resources are aggregated to form into a virtual power plant and operate as a single generator from the perspective of a system operator. Power system operators often utilize the incentives to operate virtual power plants in desired ways. To maximize the revenue of virtual power plant operators, including its incentives, an optimal portfolio needs to be identified, because each renewable energy source has a different generation pattern. This study proposes a stochastic mixed-integer programming based distributed energy resource allocation method. The proposed method attempts to maximize the revenue of VPP operators considering market incentives. Furthermore, the uncertainty in the generation pattern of renewable energy sources is considered by the stochastic approach. Numerical results show the effectiveness of the proposed method.

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Demand Response Resource Allocation Method Using Mean-Variance Portfolio Theory for Load Aggregators in the Korean Demand Response Market

Cited by 6 publications

References 16 publications

Electrolyzers Enhancing Flexibility in Electric Grids

Electrolyzers Enhancing Flexibility in Electric Grids

Optimal Dispatching of Active Distribution Networks Based on Load Equilibrium

Stochastic Mixed-Integer Programming (SMIP)-Based Distributed Energy Resource Allocation Method for Virtual Power Plants

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