Coalition of distributed generation units to Virtual Power Players - a game theory approach

Smart Grids (SGs) have emerged as the new paradigm for power system operation and management, being designed to include large amounts of distributed energy resources. This new paradigm requires new Energy Resource Management (ERM) methodologies considering different operation strategies and the existence of new management players such as several types of aggregators. This paper proposes a methodology to facilitate the coalition between distributed generation units originating Virtual Power Players (VPP) considering a game theory approach. The proposed approach consists in the analysis of the classifications that were attributed by each VPP to the distributed generation units, as well as in the analysis of the previous established contracts by each player. The proposed classification model is based in fourteen parameters including technical, economical and behavioural ones. Depending of the VPP strategies, size and goals, each parameter has different importance. VPP can also manage other type of energy resources, like storage units, electric vehicles, demand response programs or even parts of the MV and LV distribution network. A case study with twelve VPPs with different characteristics and one hundred and fifty real distributed generation units is included in the paper.

Demand Response Programs Design and Use Considering Intensive Penetration of Distributed Generation

Further improvements in demand response programs implementation are needed in order to take full advantage of this resource, namely for the participation in energy and reserve market products, requiring adequate aggregation and remuneration of small size resources. The present paper focuses on SPIDER, a demand response simulation that has been improved in order to simulate demand response, including realistic power system simulation. For illustration of the simulator’s capabilities, the present paper is proposes a methodology focusing on the aggregation of consumers and generators, providing adequate tolls for the demand response program’s adoption by evolved players. The methodology proposed in the present paper focuses on a Virtual Power Player that manages and aggregates the available demand response and distributed generation resources in order to satisfy the required electrical energy demand and reserve. The aggregation of resources is addressed by the use of clustering algorithms, and operation costs for the VPP are minimized. The presented case study is based on a set of 32 consumers and 66 distributed generation units, running on 180 distinct operation scenarios.

Cost allocation model for distribution networks considering high penetration of distributed energy resources

The high penetration of distributed energy resources (DER) in distribution networks and the competitive environment of electricity markets impose the use of new approaches in several domains. The network cost allocation, traditionally used in transmission networks, should be adapted and used in the distribution networks considering the specifications of the connected resources. The main goal is to develop a fairer methodology trying to distribute the distribution network use costs to all players which are using the network in each period. In this paper, a model considering different type of costs (fixed, losses, and congestion costs) is proposed comprising the use of a large set of DER, namely distributed generation (DG), demand response (DR) of direct load control type, energy storage systems (ESS), and electric vehicles with capability of discharging energy to the network, which is known as vehicle-to-grid (V2G). The proposed model includes three distinct phases of operation. The first phase of the model consists in an economic dispatch based on an AC optimal power flow (AC-OPF); in the second phase Kirschen's and Bialek's tracing algorithms are used and compared to evaluate the impact of each resource in the network. Finally, the MW-mile method is used in the third phase of the proposed model. A distribution network of 33 buses with large penetration of DER is used to illustrate the application of the proposed model.

VPPs information needs for effective operation in competitive electricity markets

The large increase of renewable energy sources and Distributed Generation (DG) of electricity gives place to the Virtual Power Producer (VPP) concept. VPPs may turn electricity generation by renewable sources valuable in electricity markets. Information availability and adequate decision-support tools are crucial for achieving VPPs’ goals. This involves information concerning associated producers and market operation. This paper presents ViProd, a simulation tool that allows simulating VPPs operation, focusing mainly in the information requirements for adequate decision making.

Importance of technologies characteristics for VPPs

The large increase of renewable energy sources and Distributed Generation (DG) of electricity gives place to the Virtual Power Producer (VPP) concept. VPPs can reinforce the importance of these generation technologies making them valuable in electricity markets. One of the most important tasks of a VPP is the conjugation of technologies to obtain a consistent set of associated producers and allow them to operate in the electric market. This paper presents some characteristics regarding already existent technologies and relevant aspects for producers and for VPP.

Particle swarm optimization based approaches to vehicle-to-grid scheduling

This paper addresses the problem of energy resources management using modern metaheuristics approaches, namely Particle Swarm Optimization (PSO), New Particle Swarm Optimization (NPSO) and Evolutionary Particle Swarm Optimization (EPSO). The addressed problem in this research paper is intended for aggregators’ use operating in a smart grid context, dealing with Distributed Generation (DG), and gridable vehicles intelligently managed on a multi-period basis according to its users’ profiles and requirements. The aggregator can also purchase additional energy from external suppliers. The paper includes a case study considering a 30 kV distribution network with one substation, 180 buses and 90 load points. The distribution network in the case study considers intense penetration of DG, including 116 units from several technologies, and one external supplier. A scenario of 6000 EVs for the given network is simulated during 24 periods, corresponding to one day. The results of the application of the PSO approaches to this case study are discussed deep in the paper.

A multi-agent based approach for intelligent smart grid management

The spread and globalization of distributed generation (DG) in recent years has should highly influence the changes that occur in Electricity Markets (EMs). DG has brought a large number of new players to take action in the EMs, therefore increasing the complexity of these markets. Simulation based on multi-agent systems appears as a good way of analyzing players’ behavior and interactions, especially in a coalition perspective, and the effects these players have on the markets. MASCEM – Multi-Agent System for Competitive Electricity Markets was created to permit the study of the market operation with several different players and market mechanisms. MASGriP – Multi-Agent Smart Grid Platform is being developed to facilitate the simulation of micro grid (MG) and smart grid (SG) concepts with multiple different scenarios. This paper presents an intelligent management method for MG and SG. The simulation of different methods of control provides an advantage in comparing different possible approaches to respond to market events. Players utilize electric vehicles’ batteries and participate in Demand Response (DR) contracts, taking advantage on the best opportunities brought by the use of all resources, to improve their actions in response to MG and/or SG requests.

Remuneration and tariffs in the context of virtual power players

Power systems have been through deep changes in recent years, namely with the operation of competitive electricity markets in the scope and the increasingly intensive use of renewable energy sources and distributed generation. This requires new business models able to cope with the new opportunities that have emerged. Virtual Power Players (VPPs) are a new player type which allows aggregating a diversity of players (Distributed Generation (DG), Storage Agents (SA), Electrical Vehicles, (V2G) and consumers), to facilitate their participation in the electricity markets and to provide a set of new services promoting generation and consumption efficiency, while improving players` benefits. A major task of VPPs is the remuneration of generation and services (maintenance, market operation costs and energy reserves), as well as charging energy consumption. This paper proposes a model to implement fair and strategic remuneration and tariff methodologies, able to allow efficient VPP operation and VPP goals accomplishment in the scope of electricity markets.

Distribution network short term scheduling in Smart Grid context

The large increase of Distributed Generation (DG) in Power Systems (PS) and specially in distribution networks makes the management of distribution generation resources an increasingly important issue. Beyond DG, other resources such as storage systems and demand response must be managed in order to obtain more efficient and “green” operation of PS. More players, such as aggregators or Virtual Power Players (VPP), that operate these kinds of resources will be appearing. This paper proposes a new methodology to solve the distribution network short term scheduling problem in the Smart Grid context. This methodology is based on a Genetic Algorithms (GA) approach for energy resource scheduling optimization and on PSCAD software to obtain realistic results for power system simulation. The paper includes a case study with 99 distributed generators, 208 loads and 27 storage units. The GA results for the determination of the economic dispatch considering the generation forecast, storage management and load curtailment in each period (one hour) are compared with the ones obtained with a Mixed Integer Non-Linear Programming (MINLP) approach.

Using data mining techniques to support DR programs definition in smart grids

In recent years, Power Systems (PS) have experimented many changes in their operation. The introduction of new players managing Distributed Generation (DG) units, and the existence of new Demand Response (DR) programs make the control of the system a more complex problem and allow a more flexible management. An intelligent resource management in the context of smart grids is of huge important so that smart grids functions are assured. This paper proposes a new methodology to support system operators and/or Virtual Power Players (VPPs) to determine effective and efficient DR programs that can be put into practice. This method is based on the use of data mining techniques applied to a database which is obtained for a large set of operation scenarios. The paper includes a case study based on 27,000 scenarios considering a diversity of distributed resources in a 32 bus distribution network.

VPP´s multi-level negotiation in smart grids and competitive electricity markets

The increase of distributed generation (DG) has brought about new challenges in electrical networks electricity markets and in DG units operation and management. Several approaches are being developed to manage the emerging potential of DG, such as Virtual Power Players (VPPs), which aggregate DG plants; and Smart Grids, an approach that views generation and associated loads as a subsystem. This paper presents a multi-level negotiation mechanism for Smart Grids optimal operation and negotiation in the electricity markets, considering the advantages of VPPs’ management. The proposed methodology is implemented and tested in MASCEM – a multiagent electricity market simulator, developed to allow deep studies of the interactions between the players that take part in the electricity market negotiations.

LMP based bid formation for virtual power players operating in smart grids

Power system organization has gone through huge changes in the recent years. Significant increase in distributed generation (DG) and operation in the scope of liberalized markets are two relevant driving forces for these changes. More recently, the smart grid (SG) concept gained increased importance, and is being seen as a paradigm able to support power system requirements for the future. This paper proposes a computational architecture to support day-ahead Virtual Power Player (VPP) bid formation in the smart grid context. This architecture includes a forecasting module, a resource optimization and Locational Marginal Price (LMP) computation module, and a bid formation module. Due to the involved problems characteristics, the implementation of this architecture requires the use of Artificial Intelligence (AI) techniques. Artificial Neural Networks (ANN) are used for resource and load forecasting and Evolutionary Particle Swarm Optimization (EPSO) is used for energy resource scheduling. The paper presents a case study that considers a 33 bus distribution network that includes 67 distributed generators, 32 loads and 9 storage units.

Intelligent energy resources management in the context of smart grids

Smart grids are envisaged as infrastructures able to accommodate all centralized and distributed energy resources (DER), including intensive use of renewable and distributed generation (DG), storage, demand response (DR), and also electric vehicles (EV), from which plug-in vehicles, i.e. gridable vehicles, are especially relevant. Moreover, smart grids must accommodate a large number of diverse types or players in the context of a competitive business environment. Smart grids should also provide the required means to efficiently manage all these resources what is especially important in order to make the better possible use of renewable based power generation, namely to minimize wind curtailment. An integrated approach, considering all the available energy resources, including demand response and storage, is crucial to attain these goals. This paper proposes a methodology for energy resource management that considers several Virtual Power Players (VPPs) managing a network with high penetration of distributed generation, demand response, storage units and network reconfiguration. The resources are controlled through a flexible SCADA (Supervisory Control And Data Acquisition) system that can be accessed by the evolved entities (VPPs) under contracted use conditions. A case study evidences the advantages of the proposed methodology to support a Virtual Power Player (VPP) managing the energy resources that it can access in an incident situation.

Demand response programs definition supported by clustering and classification techniques

The growing importance and influence of new resources connected to the power systems has caused many changes in their operation. Environmental policies and several well know advantages have been made renewable based energy resources largely disseminated. These resources, including Distributed Generation (DG), are being connected to lower voltage levels where Demand Response (DR) must be considered too. These changes increase the complexity of the system operation due to both new operational constraints and amounts of data to be processed. Virtual Power Players (VPP) are entities able to manage these resources. Addressing these issues, this paper proposes a methodology to support VPP actions when these act as a Curtailment Service Provider (CSP) that provides DR capacity to a DR program declared by the Independent System Operator (ISO) or by the VPP itself. The amount of DR capacity that the CSP can assure is determined using data mining techniques applied to a database which is obtained for a large set of operation scenarios. The paper includes a case study based on 27,000 scenarios considering a diversity of distributed resources in a 33 bus distribution network.

Towards the wide implementation of standards IEC 61968/70 (CIM) and IEC 61850 in the distribution system (CIGRÉ C6-105_2010)

Currently, power systems (PS) already accommodate a substantial penetration of distributed generation (DG) and operate in competitive environments. In the future, as the result of the liberalisation and political regulations, PS will have to deal with large-scale integration of DG and other distributed energy resources (DER), such as storage and provide market agents to ensure a flexible and secure operation. This cannot be done with the traditional PS operational tools used today like the quite restricted information systems Supervisory Control and Data Acquisition (SCADA) [1]. The trend to use the local generation in the active operation of the power system requires new solutions for data management system. The relevant standards have been developed separately in the last few years so there is a need to unify them in order to receive a common and interoperable solution. For the distribution operation the CIM models described in the IEC 61968/70 are especially relevant. In Europe dispersed and renewable energy resources (D&RER) are mostly operated without remote control mechanisms and feed the maximal amount of available power into the grid. To improve the network operation performance the idea of virtual power plants (VPP) will become a reality. In the future power generation of D&RER will be scheduled with a high accuracy. In order to realize VPP decentralized energy management, communication facilities are needed that have standardized interfaces and protocols. IEC 61850 is suitable to serve as a general standard for all communication tasks in power systems [2]. The paper deals with international activities and experiences in the implementation of a new data management and communication concept in the distribution system. The difficulties in the coordination of the inconsistent developed in parallel communication and data management standards - are first addressed in the paper. The upcoming unification work taking into account the growing role of D&RER in the PS is shown. It is possible to overcome the lag in current practical experiences using new tools for creating and maintenance the CIM data and simulation of the IEC 61850 protocol – the prototype of which is presented in the paper –. The origin and the accuracy of the data requirements depend on the data use (e.g. operation or planning) so some remarks concerning the definition of the digital interface incorporated in the merging unit idea from the power utility point of view are presented in the paper too. To summarize some required future work has been identified.