TY - CONF
T1 - Financial storage rights: Definition and basic properties
T2 - 2014 North American Power Symposium (NAPS)
Y1 - 2014/09//
SP - 1
EP - 6
A1 - Munoz-Alvarez, Daniel
A1 - Eilyan Bitar
KW - energy storage
KW - reliability and markets
KW - RM11-006
AB - The decreasing cost of energy storage technologies coupled with their potential to bring significant benefits to electric power networks have kindled research efforts to design both market and regulatory frameworks to facilitate the efficient integration of such technologies. The primary challenge resides in designing market systems that provide the correct incentives to deploy and operate storage systems efficiently in both the short and long-run. In the following paper, we propose an open access approach to the integration of storage in which storage is treated as a communal asset centrally operated by the System Operator (SO) to maximize social welfare; not unlike the operation of the transmission network today. Concomitantly, we propose a novel electricity derivative, which we refer to as financial storage rights (FSRs), to enable the redistribution of the additional merchandising surplus (attributable to storage) collected by the SO. FSRs do not interfere with the socially optimal operation of storage, and their definition as a sequence of nodal power injections facilitates their use by market participants to mitigate the cost and/or risk of meeting contractual commitments. Moreover, the revenue collected by the SO through the sale of FSRs can be used to remunerate capital expenditures in storage.
JF - 2014 North American Power Symposium (NAPS)
PB - IEEE
CY - Pullman, WA, USA
DO - 10.1109/NAPS.2014.6965443
ER -
TY - CONF
T1 - Variability and the Locational Marginal Value of Energy Storage
T2 - 2014 IEEE 53rd Annual Conference on Decision and Control (CDC)
Y1 - 2014/12//
SP - 3259
EP - 3265
A1 - Subhonmesh Bose
A1 - Eilyan Bitar
KW - energy storage
KW - Locational marginal value
KW - reliability and markets
KW - RM11-006
AB - Given a stochastic net demand process evolving over a transmission-constrained power network, we consider the system operator's problem of minimizing the expected cost of generator dispatch, when it has access to spatially distributed energy storage resources. We show that the expected benefit of storage derived under the optimal dispatch policy is concave and non-decreasing in the vector of energy storage capacities. Thus, the greatest marginal value of storage is derived at small installed capacities. For such capacities, we provide an upper bound on the locational (nodal) marginal value of storage in terms of the variation of the shadow prices of electricity at each node. In addition, we prove that this upper bound is tight, when the cost of generation is spatially uniform and the network topology is acyclic. These formulae not only shed light on the correct measure of statistical variation in quantifying the value of storage, but also provide computationally tractable tools to empirically calculate the locational marginal value of storage from net demand time series data.
JF - 2014 IEEE 53rd Annual Conference on Decision and Control (CDC)
PB - IEEE
CY - Los Angeles, CA, USA
SN - 978-1-4799-7746-8
DO - 10.1109/CDC.2014.7039893
ER -
TY - JOUR
T1 - Risk-limiting dispatch for integrating renewable power
JF - International Journal of Electrical Power & Energy Systems
Y1 - 2013/01//
SP - 615
EP - 628
A1 - Ram Rajagopal
A1 - Eilyan Bitar
A1 - Pravin Varaiya
A1 - Felix Wu
KW - CERTS
KW - reliability and markets
KW - renewables integration
KW - reserve markets
KW - RM11-006
AB - Risk-limiting dispatch or RLD is formulated as the optimal solution to a multi-stage, stochastic decision problem. At each stage, the system operator (SO) purchases forward energy and reserve capacity over a block or interval of time. The blocks get shorter as operations approach real time. Each decision is based on the most recent available information, including demand, renewable power, weather forecasts. The accumulated energy blocks must at each time t match the net demand D(t) = L(t) − W(t). The load L and renewable power W are both random processes. The expected cost of a dispatch is the sum of the costs of the energy and reserve capacity and the penalty or risk from mismatch between net demand and energy supply. The paper derives computable ‘closed-form’ formulas for RLD. Numerical examples demonstrate that the minimum expected cost can be substantially reduced by recognizing that risk from current decisions can be mitigated by future decisions; by additional intra-day energy and reserve capacity markets; and by better forecasts. These reductions are quantified and can be used to explore changes in the SO’s decision structure, forecasting technology, and renewable penetration.
VL - 44
IS - 1
JO - International Journal of Electrical Power & Energy Systems
DO - 10.1016/j.ijepes.2012.07.048
ER -
TY - CONF
T1 - Optimal power and reserve capacity procurement policies with deferrable loads
T2 - 2012 IEEE 51st Annual Conference on Decision and Control (CDC)
Y1 - 2012/12//
SP - 450
EP - 456
A1 - Anand Subramanian
A1 - Taylor, J. A.
A1 - Eilyan Bitar
A1 - Duncan S. Callaway
A1 - Kameshwar Poolla
A1 - Pravin Varaiya
KW - load management
KW - load modeling
KW - power system economics
KW - reliability and markets
KW - renewables
KW - RM11-006
AB - Deferrable loads can be used to mitigate the variability associated with renewable generation. In this paper, we study the impact of deferrable loads on forward market operations. Specifically, we compute cost-minimizing ex-ante bulk power and reserve capacity procurement policies in the cases of fully deferrable and non-deferrable loads. For non-deferrable loads, we analytically express this policy on a partition of procurement prices. We also formulate a threshold policy for deferrable load scheduling in the face of uncertain supply, that minimizes grid operating costs.
JF - 2012 IEEE 51st Annual Conference on Decision and Control (CDC)
PB - IEEE
CY - Maui, HI, USA
SN - 978-1-4673-2065-8
DO - 10.1109/CDC.2012.6426102
ER -
TY - CONF
T1 - Risk limiting dispatch of wind power
T2 - 2012 American Control Conference (ACC)
Y1 - 2012/06//
SP - 4417
EP - 4422
A1 - Ram Rajagopal
A1 - Eilyan Bitar
A1 - Felix Wu
A1 - Pravin Varaiya
KW - CERTS
KW - reliability and markets
KW - reserve generation
KW - risk-limiting dispatch
KW - RM11-006
KW - wind power
AB - Integrating wind and solar power into the grid requires dispatching various types of reserve generation to compensate for the randomness of renewable power. The dispatch is usually determined by a system operator (SO) or an aggregator who `firms' variable energy by bundling it with conventional power. The optimal dispatch is formulated as the solution to a stochastic control problem and shown to have a closed form that can be quickly computed. Different objectives and risk constraints can be included in the formulation and trade-offs can be evaluated. In particular one can quantify the influence of sequential forecasts on the total integration cost and the choice of dispatched generation. When the forecast error is Gaussian, the optimal dispatch policy can be precomputed.
JF - 2012 American Control Conference (ACC)
PB - IEEE
CY - Montreal, QC
SN - 978-1-4577-1095-7
DO - 10.1109/ACC.2012.6315239
ER -
TY - CONF
T1 - Selling Random Wind
T2 - 2012 45th Hawaii International Conference on System Sciences (HICSS)
Y1 - 2012/01//
SP - 1931
EP - 1937
A1 - Eilyan Bitar
A1 - Kameshwar Poolla
A1 - Pramod P. Khargonekar
A1 - Ram Rajagopal
A1 - Pravin Varaiya
A1 - Felix Wu
KW - CERTS
KW - electricity markets
KW - reliability
KW - reliability and markets
KW - renewables integration
KW - RM11-006
AB - Wind power is inherently random, but we are used to 100 percent reliable or 'firm' electricity, so reserves are used to convert random wind power into firm electricity. The cost of these reserves is frequently a hidden subsidy to wind power producers. We propose an alternative: package random wind power into electricity with different levels of reliability and sell them at different prices. This variable-reliability market is more efficient than the current firm-electricity market, and may require lower subsidy. However, we have to think of electricity differently. We also explore interesting differences between the variable-reliability and related real-time markets.
JF - 2012 45th Hawaii International Conference on System Sciences (HICSS)
PB - IEEE
CY - Maui, HI, USA
SN - 978-1-4577-1925-7
DO - 10.1109/HICSS.2012.523
ER -