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Title: A Vision for Co-optimized T&D System Interaction with Renewables and Demand Response

Abstract

The evolution of the power system to the reliable, effi- cient and sustainable system of the future will involve development of both demand- and supply-side technology and operations. The use of demand response to counterbalance the intermittency of re- newable generation brings the consumer into the spotlight. Though individual consumers are interconnected at the low-voltage distri- bution system, these resources are typically modeled as variables at the transmission network level. In this paper, a vision for co- optimized interaction of distribution systems, or microgrids, with the high-voltage transmission system is described. In this frame- work, microgrids encompass consumers, distributed renewables and storage. The energy management system of the microgrid can also sell (buy) excess (necessary) energy from the transmission system. Preliminary work explores price mechanisms to manage the microgrid and its interactions with the transmission system. Wholesale market operations are addressed through the devel- opment of scalable stochastic optimization methods that provide the ability to co-optimize interactions between the transmission and distribution systems. Modeling challenges of the co-optimization are addressed via solution methods for large-scale stochastic op- timization, including decomposition and stochastic dual dynamic programming.

Authors:
ORCiD logo [1];  [1];  [1];  [2]
  1. Cornell Univ., Ithaca, NY (United States)
  2. Smith College, Northampton MA (United States)
Publication Date:
Research Org.:
Cornell Univ., Ithaca, NY (United States)
Sponsoring Org.:
USDOE Office of Energy Efficiency and Renewable Energy (EERE)
OSTI Identifier:
1340669
Report Number(s):
DOE-CORNELL-00843-3
Journal ID: ISSN 2572-6862
DOE Contract Number:
OE0000843
Resource Type:
Conference
Resource Relation:
Journal Name: Proceedings of the 50th Hawaii International Conference on System Sciences; Conference: Hawaii International Conference on System Sciences (HICSS), Kona, HI (United States), 4-7 Jan 2017
Country of Publication:
United States
Language:
English
Subject:
14 SOLAR ENERGY; 17 WIND ENERGY; 24 POWER TRANSMISSION AND DISTRIBUTION; 29 ENERGY PLANNING, POLICY, AND ECONOMY; renewable energy; microgrid; responsive demand; stochastic optimization

Citation Formats

Anderson, C. Lindsay, Zéphyr, Luckny, Liu, Jialin, and Cardell, Judith B.. A Vision for Co-optimized T&D System Interaction with Renewables and Demand Response. United States: N. p., 2017. Web. doi:10.24251/HICSS.2017.360.
Anderson, C. Lindsay, Zéphyr, Luckny, Liu, Jialin, & Cardell, Judith B.. A Vision for Co-optimized T&D System Interaction with Renewables and Demand Response. United States. doi:10.24251/HICSS.2017.360.
Anderson, C. Lindsay, Zéphyr, Luckny, Liu, Jialin, and Cardell, Judith B.. Sat . "A Vision for Co-optimized T&D System Interaction with Renewables and Demand Response". United States. doi:10.24251/HICSS.2017.360. https://www.osti.gov/servlets/purl/1340669.
@article{osti_1340669,
title = {A Vision for Co-optimized T&D System Interaction with Renewables and Demand Response},
author = {Anderson, C. Lindsay and Zéphyr, Luckny and Liu, Jialin and Cardell, Judith B.},
abstractNote = {The evolution of the power system to the reliable, effi- cient and sustainable system of the future will involve development of both demand- and supply-side technology and operations. The use of demand response to counterbalance the intermittency of re- newable generation brings the consumer into the spotlight. Though individual consumers are interconnected at the low-voltage distri- bution system, these resources are typically modeled as variables at the transmission network level. In this paper, a vision for co- optimized interaction of distribution systems, or microgrids, with the high-voltage transmission system is described. In this frame- work, microgrids encompass consumers, distributed renewables and storage. The energy management system of the microgrid can also sell (buy) excess (necessary) energy from the transmission system. Preliminary work explores price mechanisms to manage the microgrid and its interactions with the transmission system. Wholesale market operations are addressed through the devel- opment of scalable stochastic optimization methods that provide the ability to co-optimize interactions between the transmission and distribution systems. Modeling challenges of the co-optimization are addressed via solution methods for large-scale stochastic op- timization, including decomposition and stochastic dual dynamic programming.},
doi = {10.24251/HICSS.2017.360},
journal = {Proceedings of the 50th Hawaii International Conference on System Sciences},
number = ,
volume = ,
place = {United States},
year = {Sat Jan 07 00:00:00 EST 2017},
month = {Sat Jan 07 00:00:00 EST 2017}
}

Conference:
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  • The evolution of the power system to the reliable, efficient and sustainable system of the future will involve development of both demand- and supply-side technology and operations. The use of demand response to counterbalance the intermittency of renewable generation brings the consumer into the spotlight. Though individual consumers are interconnected at the low-voltage distribution system, these resources are typically modeled as variables at the transmission network level. In this paper, a vision for cooptimized interaction of distribution systems, or microgrids, with the high-voltage transmission system is described. In this framework, microgrids encompass consumers, distributed renewables and storage. The energy managementmore » system of the microgrid can also sell (buy) excess (necessary) energy from the transmission system. Preliminary work explores price mechanisms to manage the microgrid and its interactions with the transmission system. Wholesale market operations are addressed through the development of scalable stochastic optimization methods that provide the ability to co-optimize interactions between the transmission and distribution systems. Modeling challenges of the co-optimization are addressed via solution methods for large-scale stochastic optimization, including decomposition and stochastic dual dynamic programming.« less
  • It has been widely accepted that demand response will play an important role in reliable and economic operation of future power systems and electricity markets. Demand response can not only influence the prices in the energy market by demand shifting, but also participate in the reserve market. In this paper, we propose a full model of demand response in which demand flexibility is fully utilized by price responsive shiftable demand bids in energy market as well as spinning reserve bids in reserve market. A co-optimized day-ahead energy and spinning reserve market is proposed to minimize the expected net cost undermore » all credible system states, i.e., expected total cost of operation minus total benefit of demand, and solved by mixed integer linear programming. Numerical simulation results on the IEEE Reliability Test System show effectiveness of this model. Compared to conventional demand shifting bids, the proposed full demand response model can further reduce committed capacity from generators, starting up and shutting down of units and the overall system operating costs.« less
  • GENI Project: AutoGrid, in conjunction with Lawrence Berkeley National Laboratory and Columbia University, will design and demonstrate automated control software that helps manage real-time demand for energy across the electric grid. Known as the Demand Response Optimization and Management System - Real-Time (DROMS-RT), the software will enable personalized price signal to be sent to millions of customers in extremely short timeframes—incentivizing them to alter their electricity use in response to grid conditions. This will help grid operators better manage unpredictable demand and supply fluctuations in short time-scales —making the power generation process more efficient and cost effective for both suppliersmore » and consumers. DROMS-RT is expected to provide a 90% reduction in the cost of operating demand response and dynamic pricing Projects in the U.S.« less
  • A workshop on Integrating DSM into T D Planning was held at Pacific Gas Electric (PG E) Company's Pacific Energy Center on June 4 and 5, 1992. This event was jointly sponsored by PG E and EPRI, and brought together over 40 utility planners from 17 utilities. The attendees represented a mix of DSM, marketing, transmission, and distribution planners from around the country. A key objective of the workshop centered on opening a dialogue among utility planners about their perspectives on integrated DSM-T D planning. Issues included the viability, approaches, data requirements, and experiences in trying to bring DSM andmore » T D planning closer together. Another key objective of the workshop was to provide EPRI with a list of utility needs which could be incorporated into a research agenda for this rapidly evolving aspect of utility planning.« less
  • Fully incorporating Distribution Automation and Demand-Side Management into T&D expansion planning will require changes in traditional T&D planning procedures, standards, data, and methodology. This paper reviews T&D systems and their interaction with automation and DSM, highlighting important aspects of these relationships which must be addressed by the integrated planning process. An example DA/DSM/T&D planning problem is used to illustrate both the types of impacts and savings that can be achieved, and to examine several key points that must be addressed in the IR T&D planning process.