High shares of variable renewable energy necessitate substantial energy storage capacity. However, it remains unclear how to design a market that, on the one hand, ensures a stable and sufficient income for storage firms, and, on the other hand, maintains stable and affordable electricity costs for the consumers. Here, we use a game theoretic model to study storage competition in wholesale electricity markets. A main result is that these types of games are not necessarily stable. In particular, we find that under certain conditions, which imply a combination of a high share of variable renewable energy sources and low flexibility of conventional power plants, the system will not converge to an equilibrium. However, we demonstrate that a price cap on storage price bids can ensure convergence to a stable solution. Moreover, we find that when the flexibility of conventional power plants is low, while the storage usage for energy balancing increases with renewable energy generation, the profitability of using storage for the sole purpose of energy arbitrage decreases.
Electricity price is a key factor affecting the decision-making for all market participants. Accurate forecasting of electricity prices is very important and is also very challenging since electricity price is highly volatile due to various factors. This paper proposes an integrated long-term recurrent convolutional network (ILRCN) model to predict electricity prices considering the majority contributing attributes to the market price as input. The proposed ILRCN model combines the functionalities of convolutional neural network and long short-term memory (LSTM) algorithm along with the propos…
This paper presents a framework for simultaneous bidding and pricing strategy for wholesale market participation of electric vehicle (EV) charging stations aggregator. The proposed framework incorporates the EV charging stations' technical constraints as well as EV owners' preferences. A bi-level optimization is adopted to model the problem. In the upper level, the total profit of the EV charging station aggregator is maximized. In the lower-level problem, the EV owner's utility function is maximized. The EV owners' preferences are modeled using the quadratic utility function. The bi-level opt…
An effective distribution electricity market (DEM) is required to manage the rapidly growing small-scale distributed energy resources (DERs) in distribution systems (DSs). This paper proposes a day-ahead DEM clearing and pricing mechanism to account for the uncertainty of DERs and the coordination with the wholesale electricity market (WEM) through a bi-level model. The upper-level model clears the WEM in the transmission system (TS) and forms the locational marginal price (LMP) and uncertainty LMP (ULMP) for energy and uncertainty/reserve, respectively. In the lower level, a robust scheduling…
We design a coordination mechanism between a distribution system operator (DSO) and distributed energy resource aggregators (DERAs) participating directly in the wholesale electricity market. Aimed at ensuring system reliability while providing open access to DERAs, the coordination mechanism includes a forward auction that allocates access limits to aggregators based on aggregators' bids that represent their benefits of aggregation. The proposed coordination mechanism results in decoupled DSO and DERAs operations that satisfy the network constraints, independent of the stochasticity of the re…
The increasing trend of transportation electrification presents investors the opportunity to provide charging services to Electric Vehicle (EV) owners via the energy purchased from the wholesale electricity market. This will benefit EV owners with the availability of competitive rates compared to the regulated utility time-of-use (TOU) rates. The fundamental questions addressed in this paper are 1) will EV owners benefit from the additional choice of Electric Vehicle Charging Stations (EVCSs) compared to home charging? 2) is there any profitable market opportunity for charging stations while t…
As the demand for electricity and the need for power systems flexibility grow, it is crucial to exploit more reliable and clean sources of energy to produce electricity when needed most. Tidal lagoons generate renewable electricity by creating an artificial head difference between water levels on the seaside, driven by tides, and water levels inside the basin, controlled by flow through the structure. Depending on the level of seawater, power generation from a tidal lagoon can be controlled, i.e. shifting power generation in time. This paper aims to investigate the operation of a tidal lagoon …
Electricity storage systems (ESS) are hailed by many scholars and practitioners as a key element of the future electricity systems and a key step toward the transition to renewables . Nonetheless, the global speed of ESS implementation is relatively slow, and among possible reasons is the lack of viable business models. We developed an agent-based model to simulate the behavior of ESS within the Dutch electricity market. We adopted an exploratory modeling analysis (EMA) approach to investigate the effects of two specific business models on the value of ESS from the perspective of both investor…
Efficiently accommodating uncertain renewable resources in wholesale electricity markets is among the foremost priorities of market regulators in the US, UK and EU nations. However, existing deterministic market designs fail to internalize the uncertainty and their scenario-based stochastic extensions are limited in their ability to simultaneously maximize social welfare and guarantee non-confiscatory market outcomes in expectation and per each scenario. This paper proposes a chance-constrained stochastic market design, which is capable of producing a robust competitive equilibrium and interna…
In this paper, a distribution system operator (DSO) framework is proposed to optimally coordinate distributed energy resources (DER) aggregators' comprehensive participation in retail energy market as well as wholesale energy and regulation markets. Various types of DER aggregators, including energy storage aggregators (ESAGs), dispatchable distributed generation aggregators (DDGAGs), electric vehicles charging stations (EVCSs), and demand response aggregators (DRAGs), are modeled in the proposed DSO framework. Distribution network constraints are considered by using a linearized power flow. T…
This paper presents a framework to solve the strategic bidding problem of participants in an electricity market cleared by employing the full AC Optimal Power Flow (ACOPF) problem formulation. Traditionally, the independent system operators (ISOs) leveraged DC Optimal Power Flow (DCOPF) problem formulation to settle the electricity market. The main quest of this work is to find what would be the challenges and opportunities if ISOs leverage the full ACOPF as the market-clearing Problem (MCP)? This paper presents tractable mathematical programming with equilibrium constraints for the convexifie…
Arbitrage is one important revenue source for energy storage in electricity markets. However, a large amount of storage in the market will impact the energy price and reduce potential revenues. This can lead to strategic behaviors of profit-seeking storage investors. To study the investors' strategic storage investments, we formulate a non-cooperative game between competing investors. Each investor decides the storage investment over a long investment horizon, and operates the storage for arbitrage revenues in the daily electricity market. Different investors can deploy storage with different …
The implementation of electricity markets based on locational marginal pricing in a multi-settlement process has allowed wholesale competition, with pricing mechanisms that incentivize the optimal allocation of generation, transmission, and demand-response resources. While efficiency and reliability gains have been achieved in the US at a regional level, the lack of adequate inter-regional coordination mechanisms has limited broader gains. The shortcomings of cross-border coordination of electricity markets become more apparent as the industry transitions towards higher penetration of renewabl…
RWTH Aachen University（亚琛工业大学）；University of Applied Sciences Duesseldorf（杜塞尔多夫应用技术大学）
Assessing the effects of the energy transition and liberalization of energy markets on resource adequacy is an increasingly important and demanding task. The rising complexity in energy systems requires adequate methods for energy system modeling leading to increased computational requirements. Furthermore, with complexity, uncertainty increases likewise calling for probabilistic assessments and scenario analyses. To adequately and efficiently address these various requirements, new methods from the field of data science are needed to accelerate current methods. With our systematic literature …
In this paper, we propose a high-level Stochastic steady-state model to analyze the value of co-located energy storage systems for wind power producers that participate in an electricity market through Forward or Day Ahead contracts. In particular, we try to find optimal sizing and contracting and stationary operating policies for profit maximization in the long-run. We obtain a stylized model calibrated to actual wind power production and electricity wholesale price data that allows us to asses the value of storage size and perform sensitivity analysis on key parameters such as contract price…
Energy Management for Renewable-Colocated Artificial Intelligence Data Centers
School of Electrical and Computer Engineering, Cornell University（电气与计算机工程系，康奈尔大学）；Dyson School of Applied Economics and Management, Cornell University（应用经济学与管理学院，康奈尔大学）
Appropriately designed renewable support policies can play a leading role in promoting renewable expansions and contribute to low emission goals. Meanwhile, ill-designed policies may distort electricity markets, put power utilities and generation companies on an unlevel playing field and, in turn, cause inefficiencies. This paper proposes a framework to optimize policymaking for renewable energy sources, while incorporating conflicting interests and objectives of different stakeholders. We formulate a tri-level optimization problem where each level represents a different entity: a state regula…
Market power exercise in the electricity markets distorts market prices and diminishes social welfare. Many markets have implemented market power mitigation processes to eliminate the impact of such behavior. The design of mitigation mechanisms has a direct influence on investors' profitability and thus mid-/long-term resource adequacy. In order to evaluate the effectiveness of the existing market power mitigation mechanisms, this paper proposes a mitigation-aware strategic bidding model and studies the bidding strategies of the market participants under current practice. The proposed bidding …
In this paper, we consider a future electricity market consisting of aggregated energy prosumers, who are equipped with local wind power plants (WPPs) to support (part of) their energy demands and can also trade energy with day-ahead market (DAM) and energy balancing market (EBM). In addition, an energy aggregator (EA) is established, who can provide the trading gateways between prosumers and the markets. The EA is responsible for making pricing strategies on the prosumers to influence their trading behaviours such that the social benefit of the prosumer community is improved. Specifically, tw…
Battery Operations in Electricity Markets: Strategic Behavior and Distortions
Yale School of Management（耶鲁管理学院）；Columbia University, Graduate School of Business（哥伦比亚大学商学院）；Columbia University, Earth and Environmental Engineering（哥伦比亚大学地球与环境工程系）
In this paper, we propose a two-stage electricity market framework to explore the participation of distributed energy resources (DERs) in a day-ahead (DA) market and a real-time (RT) market. The objective is to determine the optimal bidding strategies of the aggregated DERs in the DA market and generate online incentive signals for DER-owners to optimize the social welfare taking into account network operational constraints. Distributionally robust optimization is used to explicitly incorporate data-based statistical information of renewable forecasts into the supply/demand decisions in the DA…
Strategic Spatial Load Shifting and Market Efficiency
Laboratory for Information and Decision Systems, MIT（麻省理工学院信息与决策系统实验室）；MIT Energy Initiative, MIT（麻省理工学院能源倡议）；Department of Electrical and Computer Engineering, University of Wisconsin-Madison（威斯康星大学麦迪逊分校电气与计算机工程系）
Electricity network modelling and grid simulations form a key enabling element for the integration of newer and cleaner technologies such as renewable energy generation and electric vehicles into the existing grid and energy system infrastructure. This paper reviews the models of the African electricity systems and highlights the gaps in the open model landscape. Using PyPSA (an open Power System Analysis package), the paper outlines the pathway to a fully open model and data to increase the transparency in the African electricity system planning. Optimisation and modelling can reveal viable p…
An approach for reaching the net-zero carbon electricity grid is to intensify the deployment of distributed renewable generation resources such as photovoltaic (PV) solar and wind generation, complemented with stationary and mobile (electric vehicle) battery energy storage systems (BESS). This paper assumes a scenario where the PV renewable generation and BESS are integrated into a nano-Grid (n-Grid), a prosumer-owned virtual power plant installed at the residential or commercial sites. To be profitable, this distributed energy resource (DER) needs to be managed effectively to support its own …
