We present a contract for integrating renewable energy supply and electricity spot markets for serving deferrable electric loads in order to mitigate renewable energy intermittency. The contract which we describe results in a stochastic optimal control problem for minimizing the cost of serving flexible load. We solve the optimal control problem by using a recombinant lattice for modeling renewable power supply and electricity spot price uncertainty. We compare various control policies, and we analyze the sensitivity of our results with respect to various problem parameters.

%B Proceedings of the 18th IFAC World Congress %I IFAC, Elsevier %C Milan, Italy %P 12852 - 12857 %8 08/2011 %! IFAC WC 2011 %R 10.3182/20110828-6-IT-1002.00381 %0 Journal Article %J IEEE Transactions on Power Systems %D 2011 %T Reserve Requirements for Wind Power Integration: A Scenario-Based Stochastic Programming Framework %A Anthony Papavasiliou %A Shmuel S. Oren %A Richard P. O'Neill %K power system reliability %K reliability and markets %K reserve requirements %K RM10-001 %K uncertainty %K wind power %X We present a two-stage stochastic programming model for committing reserves in systems with large amounts of wind power. We describe wind power generation in terms of a representative set of appropriately weighted scenarios, and we present a dual decomposition algorithm for solving the resulting stochastic program. We test our scenario generation methodology on a model of California consisting of 122 generators, and we show that the stochastic programming unit commitment policy outperforms common reserve rules. %B IEEE Transactions on Power Systems %V 26 %P 2197 - 2206 %8 11/2011 %N 4 %! IEEE Trans. Power Syst. %R 10.1109/TPWRS.2011.2121095 %0 Journal Article %J Energy Systems %D 2010 %T Economic analysis of the N-1 reliable unit commitment and transmission switching problem using duality concepts %A Richard P. O'Neill %A Kory W. Hedman %A Krall, Eric A. %A Anthony Papavasiliou %A Shmuel S. Oren %K power system economics %K power system reliability %K reliability and markets %K RM08-001 %X Currently, there is a national push for a smarter electric grid, one that is more controllable and flexible. Only limited control and flexibility of electric assets is currently built into electric network optimization models. Optimal transmission switching is a low cost way to leverage grid controllability: to make better use of the existing system and meet growing demand with existing infrastructure. Such control and flexibility can be categorized as a “smart grid application” where there is a co-optimization of both generators or loads and transmission topology. In this paper we form the dual problem and examine the multi-period N-1 reliable unit commitment and transmission switching problem with integer variables fixed to their optimal values. Results including LMPs and marginal cost distributions are presented for the IEEE RTS 96 test problem. The applications of this analysis in improving the efficiency of ISO and RTO markets are discussed. %B Energy Systems %V 1 %P 165 - 195 %8 5/2010 %N 2 %! Energy Syst %R 10.1007/s12667-009-0005-6 %0 Conference Paper %B IEEE Power and Energy Society (PES) General Meeting %D 2010 %T Supplying renewable energy to deferrable loads: Algorithms and economic analysis %A Anthony Papavasiliou %A Shmuel S. Oren %K deferrable loads %K electricity markets %K power generation %K reliability and markets %K renewables integration %K RM10-001 %XIn this paper we propose a direct coupling of renewable generation with deferrable demand in order to mitigate the unpredictable and non-controllable fluctuation of renewable power supply. We cast our problem in the form of a stochastic dynamic program and we characterize the value function of the problem in order to develop efficient solution methods. We develop and compare two algorithms for optimally supplying renewable power to time-flexible electricity loads in the presence of a spot market, backward dynamic programming and approximate dynamic programming. We describe how our proposition compares to price responsive demand in terms capacity gains and energy market revenues for renewable generators, and we determine the optimal capacity of deferrable demand which can be reliably coupled to renewable generation.

%B IEEE Power and Energy Society (PES) General Meeting %I IEEE %C Minneapolis, MN %P 1 - 8 %8 07/2010 %@ 978-1-4244-6549-1 %R 10.1109/PES.2010.5589405 %0 Conference Paper %B 2009 IEEE Power & Energy Society (PES) General Meeting %D 2009 %T Environmental regulation in transmission-constrained electricity markets %A Anthony Papavasiliou %A Chen, Yihsu %A Shmuel S. Oren %K CERTS %K electricity markets %K reliability and markets %K RM10-001 %XWe discuss potential competitive effects of regulating carbon emissions in a transmission constrained electricity market. We compare two regulatory instruments, renewable portfolio standards and taxing emmissions. We derive general conclusions about impacts on prices and output on a three node network. We find that renewable portfolio standards increase the market power of nonpolluting generators whereas the tax is market-power neutral. We verify our conclusions through simulations.

%B 2009 IEEE Power & Energy Society (PES) General Meeting %I IEEE %C Calgary, Canada %P 1 - 8 %8 07/2009 %@ 978-1-4244-4241-6 %R 10.1109/PES.2009.5275408 %0 Conference Paper %B 2008 IEEE Energy 2030 Conference (Energy) %D 2008 %T Coupling Wind Generators with Deferrable Loads %A Anthony Papavasiliou %A Shmuel S. Oren %K deferrable loads %K electricity markets %K reliability and markets %K renewables integration %K RM10-001 %XWe explore the possibility of directly coupling deferrable loads with wind generators in order to mitigate the variability and randomness of wind power generation. Loads engage in a contractual agreement of deferring their demand for power by a fixed amount of time and wind generators optimally allocate available wind power with the objective of minimizing the cost of unscheduled and variable supply. We simulate the performance of the proposed coupling in a market environment and we demonstrate its compatibility with existing technology, grid operations and economic incentives. The results indicate that the combination of existing deregulated power markets and demand side flexibility could support large scale integration of wind power without significant impacts on grid operations and without the requirement for prohibitive investments in backup generation.

%B 2008 IEEE Energy 2030 Conference (Energy) %I IEEE %C Atlanta, GA, USA %P 1 - 7 %8 11/2008 %@ 978-1-4244-2850-2 %R 10.1109/ENERGY.2008.4781058