Distributing resources and collecting benefits: Integrating local planning, production costing, and central resource evaluation
Distributed resources (DR) include small, modular generation and storage options, and demand-side management (SDM) that can be dispersed throughout a utility system. High-value DR applications are identified by comparing DR costs to avoided distribution investments and central generation expenses. One approach to making this comparison is to coordinate load flow and production costing simulations with bulk and local planning area models (BPMs and LPAMs). Such coordination is desirable because it accommodates existing models, but it poses two challenges. First, the long run marginal cost of power is not generally a simple sum of capacity costs and short-run marginal fuel costs. Second, interactions between bulk and distributed resources require iteration between the BPM and DR models; a simple iterative process, however, may not converge and could fail to yield a least-cost solution. These difficulties can be overcome by coordinating models with a decomposition scheme--such as Benders decomposition--that guarantees convergence and correct marginal costs. This paper outlines a decomposition approach that optimally coordinates BPMs, LPAMs, and production costing models for distributed resource evaluation. The coordination involves exchange among the models of information on investments, net power demands by local areas, and marginal costs in each iteration. The coordination scheme is illustrated by an example that uses a multiarea probabilistic production costing model with DC-load flow constraints and a mixed integer programming local area planning and production costing model. The results demonstrate the potential effect of resource costs, local area demands, and spatially-varying marginal bulk power costs on the value of DRs.
- Research Organization:
- Johns Hopkins Univ., Baltimore, MD (US)
- Sponsoring Organization:
- National Science Foundation (NSF); Electric Power Research Institute
- OSTI ID:
- 20015061
- Resource Relation:
- Conference: 1998 International Joint Power Generation Conference, Baltimore, MD (US), 08/23/1998--08/26/1998; Other Information: Available as a 2 Volume set for $175.00; PBD: 1998; Related Information: In: Proceedings of the 1998 international joint power generation conference (PWR-Vol. 33). Volume 2: Power, by Legler, J. [ed.], 983 pages.
- Country of Publication:
- United States
- Language:
- English
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