Home » Posts tagged 'Technology Policy'
Tag Archives: Technology Policy
Journal Paper Accepted at Applied Energy – Demand Side Management in Power Grid Enterprise Control: A Comparison of Industrial & Social Welfare Approaches
The LIINES is happy to announce that our recent paper entitled: “Demand Side Management in Power Grid Enterprise Control: A Comparison of Industrial & Social Welfare Approaches”, has been accepted to the Applied Energy Journal. This study comes as a result of collaboration between three universities; MIT, Masdar Institute, and Dartmouth. The work is authored by Bo Jiang (MIT), Aramazd Muzhikyan (Masdar Institute), Prof. Amro M. Farid (Dartmouth) and Prof. Kamal Youcef-Toumi (MIT).
Demand response is an integral part of a reliable and cost-effective power grid. As wind and solar energy become two important power generation sources that reduce CO2 emissions and ensure domestic energy security, their intermittent and uncertain nature poses operational challenges on the electrical grid’s reliability. Instead of relying solely on dispatchable generation, power grid operators, called ISOs, are adopting Demand Response (DR) programs to allow customers to adjust electricity consumption in response to market signals. These DR programs are an efficient way to introduce dispatchable demand side resources that mitigate the variable effects of renewable energy, enhance power grid reliability and reduce electricity costs. Fortunately, the U.S. Supreme Court’s recent ruling Federal Energy Regulatory Commission vs. Electric Power Supply Association, has upheld the implementation of Demand Response allowing its role to mature in the coming years.
Despite the recognized importance and potential of DR, the academic and industrial literature have taken divergent approaches to its implementation. The popular approach in the scientific literature uses the concept of “Transactive Energy” which works much like a stock market of energy; where customers provide bids for a certain quantity of electricity that they wish to consume. Meanwhile industrial implementations (such as those described by FERC order 745) compensate customers according to their load reduction from a predefined electricity consumption baseline that would have occurred without DR. Such a counter-factual baseline may be erroneous. At the LIINES, we have rigorously compared the two approaches. Our previous journal paper published at Applied Energy “Demand side management in a day-ahead wholesale market: A comparison of industrial & social welfare approaches” conducted the comparison in a day-ahead wholesale market context. It showed, both analytically and numerically, that the use of power consumption baselines in demand response introduces power system imbalances and costlier dispatch.
Our recent paper now expands the analysis from a single day-ahead electricity market to the multiple layers of wholesale markets found in many regions of the North American power grid. This holistic analysis includes the day-ahead, real-time, and ancillary service markets. The integration of these multiple layers of power system operations captures the coupling between them and reveals the the impacts of DR implementation over the course of a full-day with a granularity of tens of seconds. The paper quantifies both the technical and economic impacts of industrial baseline errors in the day-ahead and real-time markets, namely their impacts on power system operating reserve requirements, operating costs and market prices.
The paper concludes that the presence of demand baseline errors – present only in the industrial implementaiton – leads to a cascade of additional system imbalances and costs as compared to the Transactive Energy model. A baseline error introduced in the day-ahead market will increase costs not just in the day-ahead market, but will also introduce a greater net load error residual in the real-time market causing additional costs and imbalances. These imbalances if left unmitigated degrade system reliability or otherwise require costly regulating reserves to achieve the same reliability.
Figure 1: Cascading Cost Increase of Demand Response Baseline Errors in Day-Ahead Energy Market
An additional baseline error introduced in the real-time market further compounds this cascading effect with additional costs in the real-time market, amplified downstream imbalances, and further regulation capacity for its mitigation.
Figure 2: Cascading Cost Increase of Demand Response Baseline Errors in Real-Time Energy Market
Based on these results, the potential for baseline inflation should be given attention by federal energy policy-makers. The effects of industrial baseline errors can be mitigated with effective policy. As a first solution, ISOs could calculate demand response baselines using the same methods of load prediction normally used in energy markets. Such an approach leaves less potential for baseline manipulation. A more comprehensive solution to this problem will be the upcoming trend of transactive energy and would eliminate the concept of baselines and their associated uncertainties entirely.
In depth materials on LIINES smart power grid research can be found on the LIINES website.
Follow LIINES Blog on WordPress.com
Prof. Amro M. Farid joins the University of Massachusetts Transportation Center as an affiliated Researcher
Prof. Amro M. Farid presents at Transactive Energy Systems Conference
On Tuesday May 17, 2016, Prof. Amro M. Farid presented at the Third International Conference and Workshop on Transactive Energy Systems in Portland, Oregon. The presentation entitled: “Microgrids as a Key Enabling Transactive Energy Technology for Resilient Self-Healing Power Grid Operation” featured some of the LIINES’ recent research on resilience in power systems.
Building upon the recent IEEE Vision for Smart Grid Controls, the presentation advocated the concept of resilience self-healing operation in future power grids. This continues to be an important area of LIINES research and has been the subject of several recent blogposts. (See here, here and here). The concept of resilient power systems effectively means that healthy regions of the grid can continue to operate while disrupted and perturbed regions bring themselves back to normal operation. A key technology enabling this resilience is microgrids because they are often able to island themselves from the rest of the grid and continue to operate successfully. In this presentation, the microgrids were controlled with a transactive energy control architecture that couples several control layers to achieve both technical reliability as well as cost effectiveness. Furthermore, the presentation showed the ability for several microgrids to self-coordinate so as to demonstrate “strength-in-numbers” when adverse power grid conditions like net load ramps and variability arise. The presentation concluded with the need for significant new research where transactive energy control concepts are intertwined with recent work on power grid enterprise control.
In depth materials on LIINES smart power grid research can be found on the LIINES website.
Prof. Amro M. Farid gives invited lecture at UVIG
On April 27th, 2016, Prof. Amro M. Farid gave an invited lecture at the Utility Variable-Generation Integration Group (UVIG) Spring Technical Workshop held in Sacramento, CA. The presentation entitled: “Enterprise Control as a Holistic Assessment Method for Variable Generation & Demand Response Integration” featured many of the LIINES’ research on renewable energy integration assessment methodologies.
The presentation advocated the concept of “Power Grid Enterprise Control” which has been the subject of several recent blogposts. (See here and here). Traditionally, power system operation & control methods are conducted individually. In contrast, “Power Grid Enterprise Control” integrates these methods into a single simulation of how a power system enterprise behaves as a physical power grid tied to multiple layers of control, optimization and market behavior. Such an integrated approach provides techno-economic performance results of the power grid. Furthermore, it highlights trade-off decisions between technical reliability and cost performance. The presentation showed how enterprise control simulation can be used to study renewable energy, energy storage, and demand-side energy resources.
In depth materials on LIINES smart grid research can be found on the LIINES website.
Congratulations to Deema F. Allan for a Successful M.Sc. Thesis Defense!
The LIINES wants to congratulate Deema F. Allan with a successful defense of her master thesis entitled: “Enhance Electric Vehicle Adoption Scenarios for Abu Dhabi Road Transportation”. Deema joined the LIINES in 2014 to work on transportation electrification. The past two and a half years Deema has progressed the research in the lab incredibly as a result of her admirable dedication and perseverance. We wish Deema all the best in her future work and we are confident that her passion will lead to great achievements.