Virtual power producers integration into MASCEM

All over the world Distributed Generation is seen as a valuable help to get cleaner and more efficient electricity. Under this context distributed generators, owned by different decentralized players can provide a significant amount of the electricity generation. To get negotiation power and advantages of scale economy, these players can be aggregated giving place to a new concept: the Virtual Power Producer. Virtual Power Producers are multi-technology and multi-site heterogeneous entities. Virtual Power Producers should adopt organization and management methodologies so that they can make Distributed Generation a really profitable activity, able to participate in the market. In this paper we address the integration of Virtual Power Producers into an electricity market simulator –MASCEM – as a coalition of distributed producers.

Virtual power producers market strategies

This paper presents MASCEM - a multi-agent based electricity market simulator. MASCEM uses game theory, machine learning techniques, scenario analysis and optimisation techniques to model market agents and to provide them with decision-support. This paper mainly focus on the MASCEM ability to provide the means to model and simulate Virtual Power Producers (VPP). VPPs are represented as a coalition of agents, with specific characteristics and goals. The paper detail some of the most important aspects considered in VPP formation and in the aggregation of new producers and includes a case study.

Multi-agent electricity market simulation with dynamic strategies & virtual power producers

Distributed energy resources will provide a significant amount of the electricity generation and will be a normal profitable business. In the new decentralized grid, customers will be among the many decentralized players and may even help to co-produce the required energy services such as demand-side management and load shedding. So, they will gain the opportunity to be more active market players. The aggregation of DG plants gives place to a new concept: the Virtual Power Producer (VPP). VPPs can reinforce the importance of these generation technologies making them valuable in electricity markets. In this paper we propose the improvement of MASCEM, a multi-agent simulation tool to study negotiations in electricity spot markets based on different market mechanisms and behavior strategies, in order to take account of decentralized players such as VPP.

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.

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.

MV producers and consumers agents characterization with DSM techniques

This paper consist in the establishment of a Virtual Producer/Consumer Agent (VPCA) in order to optimize the integrated management of distributed energy resources and to improve and control Demand Side Management DSM) and its aggregated loads. The paper presents the VPCA architecture and the proposed function-based organization to be used in order to coordinate the several generation technologies, the different load types and storage systems. This VPCA organization uses a frame work based on data mining techniques to characterize the costumers. The paper includes results of several experimental tests cases, using real data and taking into account electricity generation resources as well as consumption data.

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.

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.

A decision-support system based on particle swarm optimization for multiperiod hedging in electricity markets

This paper proposes a particle swarm optimization (PSO) approach to support electricity producers for multiperiod optimal contract allocation. The producer risk preference is stated by a utility function (U) expressing the tradeoff between the expectation and variance of the return. Variance estimation and expected return are based on a forecasted scenario interval determined by a price range forecasting model developed by the authors. A certain confidence level is associated to each forecasted scenario interval. The proposed model makes use of contracts with physical (spot and forward) and financial (options) settlement. PSO performance was evaluated by comparing it with a genetic algorithm-based approach. This model can be used by producers in deregulated electricity markets but can easily be adapted to load serving entities and retailers. Moreover, it can easily be adapted to the use of other type of contracts.

Coordination between mid-term maintenance outage decisions and short-term security-constrained scheduling in smart distribution systems

Distribution systems are the first volunteers experiencing the benefits of smart grids. The smart grid concept impacts the internal legislation and standards in grid-connected and isolated distribution systems. Demand side management, the main feature of smart grids, acquires clear meaning in low voltage distribution systems. In these networks, various coordination procedures are required between domestic, commercial and industrial consumers, producers and the system operator. Obviously, the technical basis for bidirectional communication is the prerequisite of developing such a coordination procedure. The main coordination is required when the operator tries to dispatch the producers according to their own preferences without neglecting its inherent responsibility. Maintenance decisions are first determined by generating companies, and then the operator has to check and probably modify them for final approval. In this paper the generation scheduling from the viewpoint of a distribution system operator (DSO) is formulated. The traditional task of the DSO is securing network reliability and quality. The effectiveness of the proposed method is assessed by applying it to a 6-bus and 9-bus distribution system.

A new approach for multi-agent coalition formation and management in the scope of electricity markets

This paper presents a new methodology for the creation and management of coalitions in Electricity Markets. This approach is tested using the multi-agent market simulator MASCEM, taking advantage of its ability to provide the means to model and simulate VPP (Virtual Power Producers). VPPs are represented as coalitions of agents, with the capability of negotiating both in the market, and internally, with their members, in order to combine and manage their individual specific characteristics and goals, with the strategy and objectives of the VPP itself. The new features include the development of particular individual facilitators to manage the communications amongst the members of each coalition independently from the rest of the simulation, and also the mechanisms for the classification of the agents that are candidates to join the coalition. In addition, a global study on the results of the Iberian Electricity Market is performed, to compare and analyze different approaches for defining consistent and adequate strategies to integrate into the agents of MASCEM. This, combined with the application of learning and prediction techniques provide the agents with the ability to learn and adapt themselves, by adjusting their actions to the continued evolving states of the world they are playing in.

Transmission cost allocation using cooperative game theory: a comparative study

In this paper is presented a Game Theory based methodology to allocate transmission costs, considering cooperation and competition between producers. As original contribution, it finds the degree of participation on the additional costs according to the demand behavior. A comparative study was carried out between the obtained results using Nucleolus balance and Shapley Value, with other techniques such as Averages Allocation method and the Generalized Generation Distribution Factors method (GGDF). As example, a six nodes network was used for the simulations. The results demonstrate the ability to find adequate solutions on open access environment to the networks.

Multi-agent based electricity market simulator with VPP: Conceptual and implementation issues

This paper presents a new architecture for the MASCEM, a multi-agent electricity market simulator. This is implemented in a Prolog which is integrated in the JAVA program by using the LPA Win-Prolog Intelligence Server (IS) provides a DLL interface between Win-Prolog and other applications. This paper mainly focus on the MASCEM ability to provide the means to model and simulate Virtual Power Producers (VPP). VPPs are represented as a coalition of agents, with specific characteristics and goals. VPPs can reinforce the importance of these generation technologies making them valuable in electricity markets.

MASCEM - an electricity market simulator providing coalition support for virtual power players

This paper presents MASCEM - a multi-agent based electricity market simulator. MASCEM uses game theory, machine learning techniques, scenario analysis and optimization techniques to model market agents and to provide them with decision-support. This paper mainly focus on the MASCEM ability to provide the means to model and simulate Virtual Power Players (VPP). VPPs are represented as a coalition of agents, with specific characteristics and goals. The paper details some of the most important aspects considered in VPP formation and in the aggregation of new producers and includes a case study based on real data.

A long-term risk management tool for electricity markets using swarm intelligence

This paper addresses the optimal involvement in derivatives electricity markets of a power producer to hedge against the pool price volatility. To achieve this aim, a swarm intelligence meta-heuristic optimization technique for long-term risk management tool is proposed. This tool investigates the long-term opportunities for risk hedging available for electric power producers through the use of contracts with physical (spot and forward contracts) and financial (options contracts) settlement. The producer risk preference is formulated as a utility function (U) expressing the trade-off between the expectation and the variance of the return. Variance of return and the expectation are based on a forecasted scenario interval determined by a long-term price range forecasting model. This model also makes use of particle swarm optimization (PSO) to find the best parameters allow to achieve better forecasting results. On the other hand, the price estimation depends on load forecasting. This work also presents a regressive long-term load forecast model that make use of PSO to find the best parameters as well as in price estimation. The PSO technique performance has been evaluated by comparison with a Genetic Algorithm (GA) based approach. A case study is presented and the results are discussed taking into account the real price and load historical data from mainland Spanish electricity market demonstrating the effectiveness of the methodology handling this type of problems. Finally, conclusions are dully drawn.