Distributed generation producers' reserve management

Sustainable development concerns are being addressed with increasing attention, in general, and in the scope of power industry, in particular. The use of distributed generation (DG), mainly based on renewable sources, has been seen as an interesting approach to this problem. However, the increasing of DG in power systems raises some complex technical and economic issues. This paper presents ViProd, a simulation tool that allows modeling and simulating DG operation and participation in electricity markets. This paper mainly focuses on the operation of Virtual Power Producers (VPP) which are producers’ aggregations, being these producers mainly of DG type. The paper presents several reserve management strategies implemented in the scope of ViProd and the results of a case study, based on real data.

Distributed Generation and Demand Response Dispatch for a Virtual Power Player Energy and Reserve Provision

Recent changes in the operation and planning of power systems have been motivated by the introduction of Distributed Generation (DG) and Demand Response (DR) in the competitive electricity markets' environment, with deep concerns at the efficiency level. In this context, grid operators, market operators, utilities and consumers must adopt strategies and methods to take full advantage of demand response and distributed generation. This requires that all the involved players consider all the market opportunities, as the case of energy and reserve components of electricity markets. The present paper proposes a methodology which considers the joint dispatch of demand response and distributed generation in the context of a distribution network operated by a virtual power player. The resources' participation can be performed in both energy and reserve contexts. This methodology contemplates the probability of actually using the reserve and the distribution network constraints. Its application is illustrated in this paper using a 32-bus distribution network with 66 DG units and 218 consumers classified into 6 types of consumers.

Energy and reserve provision dispatch considering distributed generation and demand response

In competitive electricity markets with deep concerns at the efficiency level, demand response programs gain considerable significance. In the same way, distributed generation has gained increasing importance in the operation and planning of power systems. Grid operators and utilities are taking new initiatives, recognizing the value of demand response and of distributed generation for grid reliability and for the enhancement of organized spot market´s efficiency. Grid operators and utilities become able to act in both energy and reserve components of electricity markets. This paper proposes a methodology for a joint dispatch of demand response and distributed generation to provide energy and reserve by a virtual power player that operates a distribution network. The proposed method has been computationally implemented and its application is illustrated in this paper using a 32 bus distribution network with 32 medium voltage consumers.

Virtual power producers simulation - negotiating renewable distributed generation in competitive electricity markets

Sustainable development concerns made renewable energy sources to be increasingly used for electricity distributed generation. However, this is mainly due to incentives or mandatory targets determined by energy policies as in European Union. Assuring a sustainable future requires distributed generation to be able to participate in competitive electricity markets. To get more negotiation power in the market and to get advantages of scale economy, distributed generators can be aggregated giving place to a new concept: the Virtual Power Producer (VPP). VPPs are multi-technology and multisite heterogeneous entities that should adopt organization and management methodologies so that they can make distributed generation a really profitable activity, able to participate in the market. This paper presents ViProd, a simulation tool that allows simulating VPPs operation, in the context of MASCEM, a multi-agent based eletricity market simulator.

Scheduling distributed energy resources in an isolated grid - an artificial neural network approach

Power Systems (PS), have been affected by substantial penetration of Distributed Generation (DG) and the operation in competitive environments. The future PS will have to deal with large-scale integration of DG and other distributed energy resources (DER), such as storage means, and provide to market agents the means to ensure a flexible and secure operation. Virtual power players (VPP) can aggregate a diversity of players, namely generators and consumers, and a diversity of energy resources, including electricity generation based on several technologies, storage and demand response. This paper proposes an artificial neural network (ANN) based methodology to support VPP resource schedule. The trained network is able to achieve good schedule results requiring modest computational means. A real data test case is presented.

Demsi - a demand response simulator in the context of intensive use of distributed generation

Demand response can play a very relevant role in future power systems in which distributed generation can help to assure service continuity in some fault situations. This paper deals with the demand response concept and discusses its use in the context of competitive electricity markets and intensive use of distributed generation. The paper presents DemSi, a demand response simulator that allows studying demand response actions and schemes using a realistic network simulation based on PSCAD. Demand response opportunities are used in an optimized way considering flexible contracts between consumers and suppliers. A case study evidences the advantages of using flexible contracts and optimizing the available generation when there is a lack of supply.

Dispachability improvement of wind generation by the virtual power producers

Nowadays, there is a growing environmental concern about were the energy that we use comes from, bringing the att ention on renewable energies. However, the use and trade of renewable e nergies in the market seem to be complicated because of the lack of guara ntees of generation, mainly in the wind farms. The lack of guarantees is usually addressed by using a reserve generation. The aggregation of DG p lants gives place to a new concept: the Virtual Power Producer (VPP). VPPs can reinforce the importance of wind generation technologies, making them valuable in electricity markets. This paper presents some resul ts obtained with a simulation tool (ViProd) developed to support VPPs in the analysis of their operation and management methods and of their strat egies effects.

A probabilistic methodology for distributed generation location in isolated electrical service area

Distributed generation unlike centralized electrical generation aims to generate electrical energy on small scale as near as possible to load centers, interchanging electric power with the network. This work presents a probabilistic methodology conceived to assist the electric system planning engineers in the selection of the distributed generation location, taking into account the hourly load changes or the daily load cycle. The hourly load centers, for each of the different hourly load scenarios, are calculated deterministically. These location points, properly weighted according to their load magnitude, are used to calculate the best fit probability distribution. This distribution is used to determine the maximum likelihood perimeter of the area where each source distributed generation point should preferably be located by the planning engineers. This takes into account, for example, the availability and the cost of the land lots, which are factors of special relevance in urban areas, as well as several obstacles important for the final selection of the candidates of the distributed generation points. The proposed methodology has been applied to a real case, assuming three different bivariate probability distributions: the Gaussian distribution, a bivariate version of Freund’s exponential distribution and the Weibull probability distribution. The methodology algorithm has been programmed in MATLAB. Results are presented and discussed for the application of the methodology to a realistic case and demonstrate the ability of the proposed methodology for efficiently handling the determination of the best location of the distributed generation and their corresponding distribution networks.

Modified Particle Swarm Optimization Applied to Integrated Demand Response and DG Resources Scheduling

The elastic behavior of the demand consumption jointly used with other available resources such as distributed generation (DG) can play a crucial role for the success of smart grids. The intensive use of Distributed Energy Resources (DER) and the technical and contractual constraints result in large-scale non linear optimization problems that require computational intelligence methods to be solved. This paper proposes a Particle Swarm Optimization (PSO) based methodology to support the minimization of the operation costs of a virtual power player that manages the resources in a distribution network and the network itself. Resources include the DER available in the considered time period and the energy that can be bought from external energy suppliers. Network constraints are considered. The proposed approach uses Gaussian mutation of the strategic parameters and contextual self-parameterization of the maximum and minimum particle velocities. The case study considers a real 937 bus distribution network, with 20310 consumers and 548 distributed generators. The obtained solutions are compared with a deterministic approach and with PSO without mutation and Evolutionary PSO, both using self-parameterization.

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 competitiveenvironment of electricity markets impose the use of new approaches in several domains. The networkcost allocation, traditionally used in transmission networks, should be adapted and used in the distribu-tion networks considering the specifications of the connected resources. The main goal is to develop afairer methodology trying to distribute the distribution network use costs to all players which are usingthe network in each period. In this paper, a model considering different type of costs (fixed, losses, andcongestion 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 vehi-cles with capability of discharging energy to the network, which is known as vehicle-to-grid (V2G). Theproposed model includes three distinct phases of operation. The first phase of the model consists in aneconomic dispatch based on an AC optimal power flow (AC-OPF); in the second phase Kirschen’s andBialek’s tracing algorithms are used and compared to evaluate the impact of each resource in the net-work. Finally, the MW-mile method is used in the third phase of the proposed model. A distributionnetwork of 33 buses with large penetration of DER is used to illustrate the application of the proposedmodel.

Definition of Distribution Network Tariffs Considering Distribution Generation and Demand Response

The use of distribution networks in the current scenario of high penetration of Distributed Generation (DG) is a problem of great importance. In the competitive environment of electricity markets and smart grids, Demand Response (DR) is also gaining notable impact with several benefits for the whole system. The work presented in this paper comprises a methodology able to define the cost allocation in distribution networks considering large integration of DG and DR resources. The proposed methodology is divided into three phases and it is based on an AC Optimal Power Flow (OPF) including the determination of topological distribution factors, and consequent application of the MW-mile method. The application of the proposed tariffs definition methodology is illustrated in a distribution network with 33 buses, 66 DG units, and 32 consumers with DR capacity.

Remuneration Structure Definition for Distributed Generation Units and Demand Response Participants Aggregation

The implementation of competitive electricity markets has changed the consumers’ and distributed generation position power systems operation. The use of distributed generation and the participation in demand response programs, namely in smart grids, bring several advantages for consumers, aggregators, and system operators. The present paper proposes a remuneration structure for aggregated distributed generation and demand response resources. A virtual power player aggregates all the resources. The resources are aggregated in a certain number of clusters, each one corresponding to a distinct tariff group, according to the economic impact of the resulting remuneration tariff. The determined tariffs are intended to be used for several months. The aggregator can define the periodicity of the tariffs definition. The case study in this paper includes 218 consumers, and 66 distributed generation units.

Voltage Analysis and Load Curtailment Minimization in Sub-transmission Networks with Distributed Generation

Most of distributed generation and smart grid research works are dedicated to network operation parameters studies, reliability, etc. However, many of these works normally uses traditional test systems, for instance, IEEE test systems. This paper proposes voltage magnitude and reliability studies in presence of fault conditions, considering realistic conditions found in countries like Brazil. The methodology considers a hybrid method of fuzzy set and Monte Carlo simulation based on the fuzzy-probabilistic models and a remedial action algorithm which is based on optimal power flow. To illustrate the application of the proposed method, the paper includes a case study that considers a real 12-bus sub-transmission network.

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.

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.