A Robust Approach to manage Demand Response for power distribution system planning

The use of electrical energy storage (EES) and demand response (DR) to support system capacity is attracting increasing attention. However, little work has been done to investigate the capability of EES/DR to displace generation while providing prescribed levels of system reliability. In this context, this study extends the generation‐oriented concept of capacity credit (CC) to EES/DR, with the aim of assessing their contribution to adequacy of supply. A comprehensive framework and relevant numerical algorithms are proposed for the evaluation of EES/DR CC, with different ‘traditional’ generation‐oriented CC metrics being extended and a new CC metric defined to formally quantify the capability of EES/DR to displace conventional generation for different applications (system expansion, reliability increase etc.). In particular, specific technology‐agnostic models have been developed to illustrate the implications of energy capacity, power ratings, and efficiency of EES, as well as payback characteristics and customer flexibility (that often also depend on different forms of storage available to customers) of DR. Case studies are performed on the IEEE RTS to demonstrate how the different characteristics of EES/DR can impact on their CC. The framework developed can thus support the important debates on the role of EES/DR for smart grid planning and market development.

DOE's mission under the Distributed Energy and Electricity Reliability (DEER) Program is to strengthen America's electric energy infrastructure and provide utilities and consumers with a greater array of energy-efficient technology choices for generating, transmitting, distributing, storing, and managing demand for electric power and thermal energy. DOE recognizes that distributed energy technologies can help accomplish this mission. Distributed energy (DE) technologies have received much attention for the potential energy savings and electric power reliability assurances that may be achieved by their widespread adoption. Fueling the attention has been the desire to reduce greenhouse gas emissions and concern about easing power transmission and distribution system capacity limitations and congestion. However, these benefits may come at a cost to the electric utility companies in terms of lost revenue and other potential impacts on the distribution system. It is important to assess the costs and benefits of DE to consumers and distribution system companies. DOE commissioned this study to assess the costs and benefits of DE technologies to consumers and to better understand the effect of DE on the grid. Current central power generation units vent more waste heat (energy) than the entire transportation sector consumes and this wasted thermal energy is projected to grow by 45% within the next 20 years. Consumer investment in technologies that increase power generation efficiency is a key element of the DOE Energy Efficiency program. The program aims to increase overall cycle efficiency from 30% to 70% within 20 years as well. DOE wants to determine the impact of DE in several small areas within cities across the U.S. Ann Arbor, Michigan, was chosen as the city for this case study. Ann Arbor has electric and gas rates that can substantially affect the market penetration of DE. This case study analysis was intended to: (1) Determine what DE market penetration can realistically be expected, based on consumer investment in combined heat and power systems (CHP) and the effect of utility applied demand response (DR). (2) Evaluate and quantify the impact on the distribution utility feeder from the perspective of customer ownership of the DE equipment. (3) Determine the distribution feeder limits and the impact DE may have on future growth. For the case study, the Gas Technology Institute analyzed a single 16-megawatt grid feeder circuit in Ann Arbor, Michigan to determine whether there are economic incentives to use small distributed power generation systems that would offset the need to increase grid circuit capacity. Increasing circuit capacity would enable the circuit to meet consumer's energy demands at all times, but it would not improve the circuit's utilization factor. The analysis spans 12 years, to a planning horizon of 2015. By 2015, the demand for power is expected to exceed the grid circuit capacity for a significant portion of the year. The analysis was to determine whether economically acceptable implementation of customer-owned DE systems would reduce the peak power demands enough to forestall the need to upgrade the capacity of the grid circuit. The analysis was based on economics and gave no financial credit for improved power reliability or mitigation of environmental impacts. Before this study was completed, the utility expanded the capacity of the circuit to 22 MW. Although this expansion will enable the circuit to meet foreseeable increases in peak demand, it also will significantly decrease the circuit's overall utilization factor. The study revealed that DE penetration on the selected feeder is not expected to forestall the need to upgrade the grid circuit capacity unless interconnection barriers are removed. Currently, a variety of technical, business practice, and regulatory barriers discourage DE interconnection in the US market.

Review of real-time electricity markets for integrating Distributed Energy Resources and Demand Response

The AGGREGATE project team successfully developed and validated various modules for outage management. Brief summaries of each module are provided to showcase their strength for outage management and restoration for a distribution system with a high penetration of connected distribution energy resources (DERs).In recent years, inverter-based DERs have been widely deployed in distribution system. A most of behind-the-meter (BTM) solar power generation is not visible to the utility. The data-driven DER and load estimation modules are using machine learning (ML) and artificial intelligence (AI) to manage this issue, which provides an opportunity for distribution system operators (DSOs) to operate systems and make decisions in real-time for a distribution system with a high penetration of DERs deployed. Also, the estimated DER and true load can be further leveraged in network aggregation and cold-load pick up estimation for reducing the computing complexity and providing for fast restoration. After load demand and DER power generations have been estimated, the information will support topology and state estimation(SE). The topology estimation module demonstrated the viability of mixed integer linear programming (MILP) formulation to estimate the most likely operational radial topology and outage sections using power flow measurements, historical/estimated load and DERs data and smart meter ping measurements. Formulation includes continuous (power flow, load and DERs data) and binary measurements (smart meter ping measurements) in a single formulation. Errors in continuous data and binary data are modeled as normal distribution and Bernoulli distribution, respectively. In the future distribution grid, the power injection from controllable DERs will be essential for efficient and resilient grid operation. However, determining the optimal DER injections and restoration actions is dependent on knowledge of the system states. State estimation (SE), already the cornerstone of transmission energy management systems, will become commonplace in distribution management systems as more measurements become available from deployment of automated metering infrastructure (AMI). Observability analysis is the first step in SE, as it determines the sufficiency of the available measurements for accurately estimating the current system states. A new type of pseudo-measurement called a Correlational Measurement (CM) is introduced in this module, to enhance the observability of the system to enable more accurate SE. CMs encapsulate knowledge of correlation between demand patterns for similar classes of loads as well as injection patterns for same-technology renewable DERs. During grid contingency scenarios, DERs have been traditionally disconnected, without any fault ride-through capabilities. However, with new regulations and better technology, it is feasible for these resources to contribute to the grid’s restoration after an adverse event and hence enhance resilience. The controllability module proposes a two-step restoration scheme for the power system restoration process by leveraging additional degrees of freedom in power electronics interfaced DERs for mitigating voltage problems. In a resilience mode without the utility system, the distribution grid relies on DERs to serve critical load. In such a severe event with multiple faults on the distribution feeders, actuation of various protective devices (PDs) divides the distribution system into electrical islands. The undetected actuated PDs due to fault current contributions from DERs can delay the restoration process, thereby reducing the system resilience. The Advanced Outage Management (AOM) and the Advanced Feeder Restoration (AFR) modules developed in this project provide improved system resilience with multiple DERs. AOM identifies the faulted sections and actuated PDs in a distribution system with DERs by incorporating smart meter data. The most credible outage scenario including fault locations, PD actuations, and fault indicator (FI) failures is identified by a set of binary integer linear programming incorporating hypotheses. The AFR module serves to restore a distribution system with available energy resources taking into consideration the availability of utility sources and DERs. By partitioning the system into islands, critical load will be served with the available generation resources within islands based on the solution of a MILP. When the utility systems become available, the optimal path will be determined by a spanning tree search algorithm that reconnects these islands back to substations and restores the remaining load. The transmission and distribution (T&D) co-simulation module was used to validate the effect of a control action performed on the distribution side assets as it propagates to the transmission side. This ensures that the control action performed results in a feasible operating point on both the transmission and the distribution system. In addition to validation, the team used the T&D co-simulation module to demonstrate how distribution system assets can be used to mitigate issues on the transmission system. Specifically, the team demonstrated that appropriate switching operations on the distribution side can alleviate the line overload condition on the transmission side without causing new operational constraint violations.

Photovoltaic sizing assessment for microgrid communities under load shifting constraints and endogenous electricity prices: A Stackelberg approach

The penetration of renewable energy sources (RESs) in the electrical power system has increased significantly over the past years due to increasing global concern about climate change. However, integrating RESs into the power market is highly problematic. The output of RESs such as wind turbines (WTs) and photovoltaics (PVs) is highly uncertain. Their correlation with load demand is not always guaranteed, which compromises system reliability. Distributed energy resources (DERs), especially demand response (DR) programs and energy storage systems (ESSs), are possible options to overcome these operational challenges under the virtual power plant (VPP) setting. This study investigates the impact of using a DR program and battery energy storage system (BESS) on the VPP’s internal electricity market, and also cost-minimization analysis from a utility viewpoint. Three different constrained optimal power flow (OPF) problems are solved such as base case, DR case, and BESS case to determine total incurred costs, locational marginal prices (LMPs), and generator commitments. A scenario tree approach is used to model the uncertainties associated with WTs, PVs, and load demand. The proposed model is investigated on a 14-bus distribution system. The simulation results obtained demonstrate a favorable impact of DR and a BESS on renewable operational challenges.

Demand response is proposed as a solution to handle the fluctuations in the power supply in a scenario with higher penetration of renewable energy sources. While demand response already offers a positive business case in certain domains it still lacks matureness in other areas, especially in the residential domain. This paper aims at providing a feasibility study of residential demand response by designing and validating a novel multi-modal Building Energy Management System (BEMS) that enables demand response provision and energy efficient control from residential buildings. The proposed consumer-centric BEMS monitors the building performance and its surroundings, interacts with the residents, optimally controls local Distributed Energy Resources (DERs) and provides demand response to an aggregator. The design decisions and the consequent architecture are detailed. A prototype of the envisioned BEMS has been developed and deployed in a testbed - a 12-storey residential building located in Denmark. The prototype performance, the data monitoring capabilities, interaction with the residents and controllability of local DER of the BEMS are demonstrated.

Distributed energy resources have been increasingly integrated into electrical grids. Consequently, electricity markets are expected to undergo changes and become more complex. However, while there are many scientific publications on the topic, a broader discussion is still necessary. Therefore, a systematic literature review on electricity markets in the context of distributed energy resources integration was conducted in this paper to present in-depth discussions on the topic, along with shedding light on current perspectives, the most relevant sources, authors, papers, countries, metrics, and indexes. The software R and its open-source tool Bibliometrix were used to perform the systematic literature review based on the widely recognized databases Web of Science and Scopus, which led to a total of 1685 articles after removing duplicates. The results demonstrate that demand response, renewable energy, uncertainty, optimization, and smart grid are the most-used keywords. By assessing highly impactful articles on the theme, emphasis on energy storage systems becomes clear compared to distributed generation and electric vehicles. However, electric vehicles draw attention in terms of citations. Furthermore, multi-level stochastic programming is the most-applied methodology among highly impactful articles. Due to the relevance of the demand response keyword, this paper also conducts a specific review on the topic aligned with electricity markets and distributed energy resources (296 articles). The results demonstrate that virtually all high-impact publications on the topic address day-ahead or real-time pricing. Based on the literature found, this paper presents a discussion on the main challenges and future perspectives related to the field. The complexity of electrical power systems and electricity markets is increasing substantially according to what this study found. Distributed generation development is already advanced, while energy storage systems and electric vehicles are limited in many countries. Peer-to-peer electricity trading and virtual power plant are newer concepts that are currently incipient, and DR programs showcase an intermediate stage of evolution. A particular lack of research on social issues is verified, and also a lack of all-encompassing studies that address multiple interconnected topics, which should be better addressed in the future. The in-depth assessment carried out in this paper is expected to be of high value to researchers and policy-makers and facilitate future research on the topic.

The role of energy storage and demand response as energy democracy policies in the energy productivity of hybrid hub system considering social inconvenience cost

With an ever-evolving power grid, concerns regarding how to maintain system stability, efficiency, and reliability remain constant because of increasing uncertainties and decreasing rotating inertia. To alleviate some of these concerns, demand response represents a viable solution and is virtually an untapped resource in the current power grid. This work describes a hierarchical control framework that allows coordination between distributed energy resources and demand response. This control framework is composed of two control layers: a coordination layer that ensures aggregations of resources are coordinated to achieve system objectives and a device layer that controls individual resources to assure the predetermined power profile is tracked in real time. Large-scale simulations are executed to study the hierarchical control, requiring advancements in simulation capabilities. Technical advancements necessary to investigate and answer control interaction questions, including the Framework for Network Co-Simulation platform and Arion modeling capability, are detailed. Insights into the interdependencies of controls across a complex system and how they must be tuned, as well as validation of the effectiveness of the proposed control framework, are yielded using a large-scale integrated transmission system model coupled with multiple distribution systems.

This paper proposes a comprehensive planning method which combines mobile emergency generator and distributed energy resource for resilience enhancement of incremental power distribution system under extreme grid faults. For this aim, the optimal allocation issue of mobile emergency generator (MEG) is studied and considered together with the implementation of distributed energy resource (DER) and demand response (DR) program under the same framework. The concerned problem has been formulated as a two-stage robust optimization problem, which aims to minimize the overall cost of the system pertaining to investment, operation and loss of load, by simultaneously optimizing the allocation of emergency MEG units, DER units and DR-enabling facilities. In order to efficiently solve the proposed problem, a decomposition-based algorithm, column-and-constraint generation (C&CG) technique is employed. The simulation results based on a real distribution system on Beijing demonstrate that the proposed integrated planning method could be efficient in improving the resiliency of incremental power distribution system in response to severe grid faults, and moreover the proposed solution has better economic effectiveness than the conventional reinforcement-only-based strategies.

Peer-to-Peer (P2P) electricity trading is an emerging means for allowing communities to share local energy production and demand response through direct trading. It is projected to play an important role in the future energy market by increasing the incentive to own and operate distributed energy resources (DERs) and participate in demand response (DR). A common approach to implementing P2P trading is with blockchain, however, existing solutions feature limitations. Typically, concerns involve either scalability and high transaction costs or projects implementing a permissioned blockchain that does not provide the trust and decentralization desired. In addition, the majority of market designs are simplified and do not capture the distinct complexity of electricity markets. They do not consider the inter-temporal constraints of appliances and DERs that need to run for multiple periods. Complex market designs that address these issues have not been implemented in blockchain based systems due to the computational limitations of such systems. To improve these two aspects, this paper proposes a market formulation that supports products running multiple periods with flexible scheduling, modeled as a mixed integer linear programming problem that optimizes social welfare. The trading platform is then implemented as a side chain of Polkadot, a network of blockchains designed to be secure, scalable, and economically feasible to foster an ecosystem of application-specific sidechains. This design is demonstrated to improve social welfare and achieve scalability by benchmarking the number of transactions that can be included per second, based upon typical assumptions of the market size. The result is a decentralized and performant system that allows for complex market designs to be implemented in a blockchain environment. This approach simplifies the process for participants, allowing them to bid DER or DR devices, directly and easily, even when this requires constraints across periods.

Power systems have been undergoing radical changes in recent years, and their planning and operation will be surely undertaken according to the Smart Grid (SG) vision in the near future. The SG initiatives aim at introducing new technologies and services in power systems, to make the electrical networks more reliable, efficient, secure and environmentally-friendly. In particular, it is expected that communication technologies, computational intelligence and distributed energy sources will be widely used for the whole power system in an integrated fashion. In particular, nowadays, unprecedented challenges like as stringent regulations, environmental concerns, growing demand for high quality, reliable electricity and rising customer expectations are forcing utilities to rethink about electricity generation and delivery from the bottom up. Moreover, the availability of low cost computing and telecommunications technologies, new generation options, and scalable, modular automation systems push utilities to be dynamic, innovative and ambitious enough to take advantage of them. Driven by the dynamics of the new energy environment, leading utilities, technology vendors and government organizations have created a vision of the next generation of energy delivery systems: the Smart Grid. Operational changes of the grid, caused by restructuring of the electric utility industry and electricity storage technology advancements, have created an opportunity for storage systems to provide unique services to the evolving grid. Especially Battery Energy Storage Systems (BESSs), thanks to the large number and variety of services they can provide, are powerful tools for the solution of some challenges that future grids will face. This consideration makes BESSs critical components of the future grids. The BESS can be applied for different services into the different levels of power system chain to satisfy technical challenges and provide financial benefits. In the context of the application of BESSs in SGs, there are two main problems that need to be addressed in a way that exploits the BESS potential, that are linked to their operation and sizing. This thesis focuses on both these aspects, proposing new strategies that allow optimizing the BESS adoption. When dealing with BESSs, sizing and operation are strictly linked. The correct sizing of a BESS, in fact, needs to take into account its operation which in turn will be effected with the aim of optimizing the whole system where it is included. In the first part of this research study, advanced optimal operating strategies were proposed for BESSs by considering both the distribution system operator perspective and the end user. Thus, the proposed operating strategies were performed with the aim of (i) leveling the active power requested by the loads connected to a distribution system (distribution system operator service), (ii) reducing the electricity costs sustained by an end-use costumer that provides demand response (DR) (end user service) and (iii) scheduling a microgrid (µG) with DR resources such as Plug-in Electric Vehicles (PEVs) and Data Centers (DCs) (both the two section service). The proposed strategies also satisfied technical constraints of BESSs and other components of the µG. The second part of the thesis presented the optimal sizing of BESSs aimed at maximizing the benefits related to their use. In the thesis, the sizing, which is performed by considering the end user point of view with reference to both the industrial and residential customers, is effected by adopting both deterministic and probabilistic approaches. With reference to the deterministic approach, a simple and quick closed form procedure for the sizing of BESSs in residential and industrial applications was proposed. In case of probabilistic approach, the case of a BESS installed in an industrial facility was considered and the sizing was performed based on the decision theory. Technical improvements and economic benefits of optimal operation and optimal sizing of BESSs in SG are demonstrated by the obtained results which are reported in the numerical applications. More specifically, it was clearly determined that BESSs can offer technical supports into the distribution operator section of the grid in terms of load management and security challenges. Moreover optimal integration of BESSs into the grid was also appealing for end users thanks to valuable amounts of electricity bill cost reduction. Regarding the original contribution of the thesis, the following considerations can be done. With reference to the load leveling service, an innovative two-step procedure (day-ahead scheduling and very short time predictive control) was proposed which optimally controls a BESS connected to a distribution substation in order to perform load leveling. In case of DR, a proper control of the BESS was proposed in order to perform DR under different price schemes, such as Real Time Pricing (RTP) and Time of Use (TOU) without modifying the daily work cycle of the industrial loads. The control procedure allows achieving contemporaneously two important goals that are the reduction of the bill costs and the prolonging the battery's lifetime so further reducing the costs sustained by the customer. With reference to the scheduling of microgrids, the original contribution of the thesis is focused on the proposal of optimization strategies aimed at managing and coordinating, simultaneously, batteries on board of vehicles or equipping data centers' Uninterruptable Power Supply (UPS) and Distributed Generation (DG) units. Also comparisons among different single-objective based strategies are made in order to highlight the most convenient. With reference to the sizing based on deterministic approach, unlike the other relating literature, the innovative contribution is that the closed form procedure takes into account both the technical constraints of the battery and contractual agreements between the customer and the utility. Moreover, in the economical analysis performed for the sizing, which is applied with reference to both residential and small industrial customers and is based on actual TOU tariffs, a wide sensitivity analysis to consider different perspectives in terms of life span and future costs was performed. Some aspects that affect the profitability of the battery, such as technological limitations (e.g. the battery and converter efficiency), economic barriers (e.g. capital cost and the rate of change of the cost) and variation of the load profile along the years were deeply analyzed. In case of sizing based on probabilistic approach, the original contributions of the thesis are mainly referred to the proposal of a new method that uses a decision theory-based process to obtain the best sizing alternative considering the various uncertainties affecting the sizing procedure. The thesis is organized in three chapters which are dealing with integration of BESSs in SGs. The first chapter reports basic concepts and characteristics of BESSs, fundamental components and features of SGs and different services that BESSs can provide. The optimal operation strategies of BESS are considered in second chapter which includes their problem formulation, solving procedures and results. The third chapter deals with the optimal sizing problem of BESSs for which the problem formulation, solving procedures and results are reported. Finally, the conclusions are presented in the last part of thesis.

In the past two decades, interest in demand response (DR) schemes has grown exponentially. The need for DR has been driven by sustainability (environmental and socioeconomic) and cost-efficiency. The main premise of DR is to influence the timing and magnitude of consumption to match energy supply by sharing the benefits with consumers, ultimately aiming to optimize generation cost. As such, the first and primary enabler to DR was the establishment of contemporary electricity markets. Increased proliferation of Distributed Energy Resources (DER) and microgeneration further motivated the participation of consumers as active players in the market, popularizing DR and the wider category of Demand-Side Management (DSM) programs. Smart Grids (SG) have been an enabler to modern DR schemes, with smart metering data providing input to the underlying optimization and forecasting tools. The more recent emergence of the Internet of Energy (IoE), seen as the evolution of SG, is driven by increased Internet of Things (IoT)-enabling and high penetration of scalable and distributed energy resources. In this IoE paradigm being a fully decentralized network of energy prosumers, DR will continue to be a vital aspect of the grid in future Transactive Energy (TE) schemes, aiming for a more user-centered, energy-efficient, cost-saving, energy management approach. This paper investigates original motives and identifies the first mentions of DR in the legislative and scientific literature. Afterwards, the evolution of DR is tracked over the past four decades, attempting to study the co-influence of legislation and research by performing a thorough statistical analysis of research trends on the IEEE Xplore digital library. Finally, conclusions are made as to the current state of DR and future prospects of DR are discussed.

Load shedding as the last resort to avoid a major power system breakdown has been utilized for a long time, mainly triggered by under frequency or under voltage relays and actuated by distribution system circuit breakers. Deregulation, dispersed generation, load growth and the ever increasing dependence on reliable electricity supply of modern society have forced the need for more intelligent load shedding, as a means to preserve system integrity and provide acceptable system performance. The aim is to provide smooth load relief, in situations where the power system otherwise would go unstable. The paper covers theoretical work based on customer categories, load pattern and computer simulations, as well as field measurements in a radially fed distribution system, with a large impact of dispersed wind power generation. The measurements are performed with phasor measurement technology to capture also the dynamic properties of large wind power farms in a fairly weak system. The paper addresses indicators of imminent power system instability, advanced methods to smoothly reduce load -with and without communication, including some dynamic price based mechanisms, dynamic load response due to change in supply voltage or reactive power support, power system response due to change in load and impact of dispersed generation in power systems in transition towards an instability. The results in the paper are based both on theoretical studies and field measurements.