scholarly journals The Role of Demand Response Aggregators and the Effect of GenCos Strategic Bidding on the Flexibility of Demand

Energies ◽  
2018 ◽  
Vol 11 (12) ◽  
pp. 3296 ◽  
Author(s):  
Nur Mohammad ◽  
Yateendra Mishra
Keyword(s):  
Transaction Cost ◽  
Demand Response ◽  
Electricity Market ◽  
Market Model ◽  
Strategic Bidding ◽  
Load Curtailment ◽  
Upper Level ◽  
Trading Scheme ◽  
The Cost

This paper presents an interactive trading decision between an electricity market operator, generation companies (GenCos), and the aggregators having demand response (DR) capable loads. Decisions are made hierarchically. At the upper-level, an electricity market operator (EMO) aims to minimise generation supply cost considering a DR transaction cost, which is essentially the cost of load curtailment. A DR exchange operator aims to minimise this transaction cost upon receiving the DR offer from the multiple aggregators at the lower level. The solution at this level determines the optimal DR amount and the load curtailment price. The DR considers the end-user’s willingness to reduce demand. Lagrangian duality theory is used to solve the bi-level optimisation. The usefulness of the proposed market model is demonstrated on interconnection of the Pennsylvania-New Jersey-Maryland (PJM) 5-Bus benchmark power system model under several plausible cases. It is found that the peak electricity price and grid-wise operation expenses under this DR trading scheme are reduced.

Simultaneous Energy and Reserve Market Clearing with Consideration of Interruptible Loads as One of Demand Response Resources and Different Reliability Requirements of Consumers

2019 ◽  
Vol 20 (5) ◽  
Author(s):  
Mojtaba Najafi ◽  
Samaneh Ahmadi ◽  
Masoud Dashtdar
Keyword(s):  
Power Systems ◽  
Demand Response ◽  
Electricity Market ◽  
Wind Farm ◽  
Wind Farms ◽  
System Operator ◽  
Optimal Reserve ◽  
The Cost ◽  
Reserve Market

Abstract Determining the optimal reserve in power systems is closely related to uncertainties in power generation and risks of outage of supply to consumers. Distributed generation sources such as wind farms are usual reasons for uncertainties in MW production. This uncertainty can be alleviated by providing enough reserve in which demand response (DR) programs can play role of resources for reserve. In an electricity market structure, the mentioned points are usually handled by Independent System Operator (ISO) in energy and reserve markets. This paper deals with the problem of reliability-based reserve management. In the mentioned problem, the DR program in the form of interruptible loads is also considered. A new method is proposed in which ISO settle energy and reserve markets simultaneously while employing the DR in the first stage. In addition, consumers’ requirements of reliability are included by assuming that they have possibility to offer their desired levels of reliability to the ISO. The amount of reserve obtained from market settlement is adjusted based on the different reliability requirements of the consumers and different scenarios of the wind farm operation, in the second stage of the proposed method. Also the cost of the reserve adjustment is fairly allocated to producers and consumers. The proposed method applies stochastic programming formulation and its validity is assessed by the GAMS software. Simulation results show that how amount and cost of reserve could be adjusted to cover power balance, cost of power production and load interruption and required reliability of consumers.

scholarly journals P2H Modeling and Operation in the Microgrid Under Coupled Electricity–Hydrogen Markets

2021 ◽  
Vol 9 ◽  
Author(s):  
Hongxin Liu ◽  
Yueyao Wang ◽  
Feifei Xu ◽  
Mengkai Wu ◽  
Kai Jiang ◽  
...  
Keyword(s):  
Electricity Market ◽  
Large Scale ◽  
Proton Exchange Membrane ◽  
Proton Exchange ◽  
Market Model ◽  
Electrolysis Cell ◽  
Unified Modeling ◽  
Upper Level ◽  
Alkaline Electrolysis ◽  
Exchange Membrane

The uncertainty and volatility of wind power have led to large-scale wind curtailment during grid connections. The adoption of power-to-hydrogen (P2H) system in a microgrid (MG) can mitigate the renewable curtailment by hydrogen conversion and storage. This paper conducts unified modeling for different types of P2H systems and considers the multi-energy trading in a hydrogen-coupled power market. The proposed bi-level equilibrium model is beneficial to minimize the energy cost of microgrids. Firstly, a microgrid operation model applied to different P2H systems including an alkaline electrolysis cell (AEC), a proton exchange membrane electrolysis cell (PEMEC), or a solid oxide electrolysis cell (SOEC) is proposed at the upper level. Secondly, an electricity market–clearing model and a hydrogen market model are constructed at the lower level. Then, the diagonalization algorithm is adopted to solve the multi-market equilibrium problem. Finally, case studies based on an IEEE 14-bus system are conducted to validate the proposed model, and the results show that the microgrid with a P2H system could gain more profits and help increase the renewable penetration.

scholarly journals Probabilistic Optimization of Networked Multi-Carrier Microgrids to Enhance Resilience Leveraging Demand Response Programs

2021 ◽  
Vol 13 (11) ◽  
pp. 5792
Author(s):  
Mahdi Azimian ◽  
Vahid Amir ◽  
Reza Habibifar ◽  
Hessam Golmohamadi
Keyword(s):  
Power Systems ◽  
Demand Response ◽  
Electricity Market ◽  
Energy Systems ◽  
Probabilistic Optimization ◽  
Renewable Power ◽  
Key Factor ◽  
Load Curtailment ◽  
Local Supply ◽  
Demand Response Programs

Microgrids have emerged as a practical solution to improve the power system resilience against unpredicted failures and power outages. Microgrids offer substantial benefits for customers through the local supply of domestic demands as well as reducing curtailment during possible disruptions. Furthermore, the interdependency of natural gas and power networks is a key factor in energy systems’ resilience during critical hours. This paper suggests a probabilistic optimization of networked multi-carrier microgrids (NMCMG), addressing the uncertainties associated with thermal and electrical demands, renewable power generation, and the electricity market. The approach aims to minimize the NMCMG costs associated with the operation, maintenance, CO2e emission, startup and shutdown cost of units, incentive and penalty payments, as well as load curtailment during unpredicted failures. Moreover, two types of demand response programs (DRPs), including time-based and incentive-based DRPs, are addressed. The DRPs unlock the flexibility potentials of domestic demands to compensate for the power shortage during critical hours. The heat-power dual dependency characteristic of combined heat and power systems as a substantial technology in microgrids is considered in the model. The simulation results confirm that the suggested NMCMG not only integrates the flexibility potentials into the microgrids but also enhances the resilience of the energy systems.

scholarly journals The future of Swiss hydropower: how to distribute the risk and the profits?

2021 ◽  
Vol 157 (1) ◽  
Author(s):  
Mirjam Kosch ◽  
Regina Betz ◽  
Thomas Geissmann ◽  
Moritz Schillinger ◽  
Hannes Weigt
Keyword(s):  
Electricity Market ◽  
Market Price ◽  
Market Model ◽  
Economic Pressure ◽  
Electricity Prices ◽  
Detailed Design ◽  
Trade Off ◽  
The Difference ◽  
Water Fee ◽  
The Cost

AbstractLow electricity prices put economic pressure on hydropower companies. A more flexible water fee design can counteract this pressure and support hydropower companies during times when market revenues are low. However, this comes at the cost of lower revenues for resource owners. Using a sample of cost data for 62 companies and revenue data derived from an electricity market model, we have quantified this trade-off for the case of Switzerland. We found that electricity market price developments dominate changes in water fees and that for the profitability of hydropower, electricity prices are more important than water fee levels. However, with electricity prices of around CHF 40 per MWh, water fees can make the difference between profit and loss. Therefore, while flexible water fee regimes shift the market risk from producers to resource owners to some extent, the extent of this risk shift depends on the detailed design of the flexible regime.

scholarly journals Integrated Energy Transaction Mechanisms Based on Blockchain Technology

Energies ◽  
2018 ◽  
Vol 11 (9) ◽  
pp. 2412 ◽  
Author(s):  
Shengnan Zhao ◽  
Beibei Wang ◽  
Yachao Li ◽  
Yang Li
Keyword(s):  
Demand Response ◽  
Electricity Market ◽  
Rapid Development ◽  
Market Model ◽  
Distributed Energy ◽  
Energy Internet ◽  
Market Participants ◽  
Blockchain Technology ◽  
Call Auction ◽  
Two Stages

With the rapid development of distributed renewable energy (DRE), demand response (DR) programs, and the proposal of the energy internet, the current centralized trading of the electricity market model is unable to meet the trading needs of distributed energy. As a decentralized and distributed accounting mode, blockchain technology fits the requirements of distributed energy to participate in the energy market. Corresponding to the transaction principle, a blockchain-based integrated energy transaction mechanism is proposed, which divides the trading process into two stages: the call auction stage and the continues auction stage. The transactions among the electricity and heat market participants were used as examples to explain the details of the trading process. Finally, the smart contracts of the transactions were designed and deployed on the Ethereum private blockchain site to demonstrate the validity of the proposed transaction scheme.

scholarly journals Insuring catastrophes and the role of governments

2013 ◽  
Vol 13 (8) ◽  
pp. 2053-2063 ◽  
Author(s):  
M. M. Boyer ◽  
C. M. Nyce
Keyword(s):  
Natural Hazard ◽  
Insurance Coverage ◽  
Insurance Premium ◽  
Policy Implications ◽  
Insurance Market ◽  
Market Model ◽  
Catastrophic Events ◽  
Natural Catastrophes ◽  
The Cost

Abstract. In this paper we model the cost of providing insurance coverage against natural and man-made hazards. We propose an insurance market model that explains (1) the use of reinsurance to help finance the cost of catastrophic events and (2) the implicit (or explicit) presence of government entities acting as (re)insurers of last resort. Using an economic model, we show how insurance programmes should be designed to cover the losses due to a possible catastrophic natural hazard. Our results show that the optimal structure of a reinsurance programme minimizes the cost of offering insurance protection. We also show how government intervention can reduce the cost of insurance against natural catastrophes and increase policyholders' welfare. Our paper therefore offers public policy implications as to the role and presence of government as an insurer of last resort and the minimum insurance premium necessary to cover the cost of catastrophic events.

scholarly journals Maximizing Demand Response Aggregator Compensation through Optimal RES Utilization: Aggregation in Johannesburg, South Africa

2020 ◽  
Vol 10 (2) ◽  
pp. 594
Author(s):  
Ima O. Essiet ◽  
Yanxia Sun
Keyword(s):  
South African ◽  
Demand Response ◽  
Electricity Market ◽  
Energy Demand ◽  
Renewable Energy Sources ◽  
Cost Effective ◽  
End Users ◽  
Energy Market ◽  
Typical Day ◽  
The Cost

This paper examines the role of demand response aggregators in minimizing the cost of electricity generation by distribution utilities in a day-ahead electricity market. In this paper, 2500 standard South African homes are considered as end users. Five clusters (and aggregators) are considered with 500 homes in each cluster. Two cases are analysed: (1) Utilization of renewable energy sources (RES) is implemented by the distribution supply operator (DSO), where it meets excess demand for end users during peak hours by purchasing electricity from the renewable sources of the energy market, and (2) Utilization of RES is implemented by end users alone, and it is assumed that every household has one plug-in electric vehicle (PEV). The aggregators then compete with each other for the most cost-effective energy usage profile; the aggregator with the least energy demand wins the bid. In both cases, energy pricing is estimated according to the day-ahead energy market. A typical day during winter in Johannesburg is considered for the simulation using a genetic algorithm (GA). Results obtained demonstrate the effectiveness of demand response aggregators in maximizing the benefits on both sides of the electricity supply chain.

Government and the Cost of Exchange in History

1984 ◽  
Vol 44 (2) ◽  
pp. 255-264 ◽  
Author(s):  
Douglass C. North
Keyword(s):  
Transaction Cost ◽  
Third Party ◽  
Role Of Government ◽  
The Cost

A general transaction cost framework is developed to analyze the costs of exchange and the role of government in the costs of exchange. Three general types of exchange are specified: personal exchange, exchange without third-party enforcement, and exchange with third-party enforcement. The framework is then employed to analyze government and the costs of exchange in history.

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