Informs 2015

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INFORMS Philadelphia – 2015
366
TD58
58-Room 110A, CC
New Insights on Electricity Markets with
Uncertain Supply
Sponsor: ENRE – Energy I – Electricity
Sponsored Session
Chair: Juan M. Morales, Associate Professor, Technical University of
Denmark, Matematiktorvet, Building 303b, 008, Kgs. Lyngby, 2800,
Denmark,
1 - The Benefits of Sharing Reserves Between Countries:
A Case Study of the European Electricity System
Kenneth Van Den Bergh, PhD Researcher, KU Leuven,
Celestijnenlaan 300 Box 2421, Leuven, Belgium,
Robin Broder Hytowitz,
Benjamin Hobbs, William D’Haeseleer, Erik Delarue
Reserves are scheduled day-ahead in order to deal with forecast errors from wind
and sun. This study examines reserve coordination in time and space for the
Central European electricity system. Four scenarios involving various degrees of
coordination for reserves are simulated. A large-scale unit commitment model is
used to simulate the electricity markets. The study indicates savings in reserve
allocation costs of up to 90% with increasing degree of coordination.
2 - Effect of Ramping Pricing Scheme in Systems with High Wind
Energy Penetration
Yves Smeers, Professor Emeritus, Université Catholique de
Louvain, Voie du Roman Pays, 34, Louvain-la-neuve, B-1384,
Belgium, , Sebastian Martin
We consider the continuous version of an unit commitment problem with wind
penetration, and subject to ramping constraints. The optimization problem
assumes that ramping providers are priced at opportunity cost. We explore the
impact of having different pricing schemes for ramping. We use a
complementarity formulation in several versions that differ to reflect different
policy proposals based on pricing schemes for ramping.
3 - A Stochastic Electricity Market Clearing Formulation with
Consistent Pricing Properties
Victor M. Zavala, Computational Mathematician, Argonne
National Laboratory, 9700 South Cass Avenue, Argonne, IL,
60439, United States of America,
Deterministic clearing formulations introduce arbitrary distortions between day-
ahead and real-time prices that bias economic incentives. We analyze a stochastic
clearing formulation in which the social surplus function induces absolute value
penalties between day-ahead and real-time quantities. We prove that the
formulation yields price distortions that are bounded by the bid prices and we
prove that day-ahead quantities and flows converge to the medians of real-time
counterparts.
4 - On the Inefficiency of the Merit Order in Forward Electricity
Markets with Uncertain Supply
Juan M. Morales, Associate Professor, Technical University of
Denmark, Matematiktorvet, Building 303b, 008, Kgs. Lyngby,
2800, Denmark, Salvador Pineda, Marco Zugno
We derive analytically the dispatch rule for a stylized power system with infinite
transmission capacity under a stochastic market-clearing mechanism. We provide
conditions for this clearing procedure to break the merit order and for virtual
bidding to ensure maximum market efficiency under a classical merit-order
dispatch. Finally, we provide a reinterpretation of these two market-clearing
procedures as members of a broader family that allows for marked-up forward
production costs.
TD59
59-Room 110B, CC
Optimal Design and Operation of Smart
Electrical Grids
Sponsor: ENRE – Energy I – Electricity
Sponsored Session
Chair: Baosen Zhang, University of Washington, 185 Stevens Way,
Seattle, WA, United States of America,
1 - Design of Resilient Distribution Network Against Natural
Disasters: A Robust Optimization Approach
Bo Zeng, Assistant Professor, University of South Florida, Tampa,
4202 E. Fowler Avenue, Tampa, Fl, 33620, United States of
America, Wei Yuan, Feng Qiu, Chen Chen,
Jianhui Wang
Natural disasters such as Hurricane Sandy have seriously disrupted the power
grids. To increase the resilience of a distribution system under natural disaster
attacks, we propose a resilient distribution network design model considering
hardening and distributed generation unit placement to minimize the load
shedding under worst-case natural disaster attacks.
2 - Electric Resource Optimization with High Penetration Renewables
and Varying Reliability Measures
Cynthia Bothwell, Student, Johns Hopkins University, 117
Meridian Lane, Towson, MD, 21286, United States of America,
, Calvin Wood
As intermittent wind and solar energy resources increase in use throughout the
electricity sector, techniques to assess system reliability are evolving. The
optimization of investment in new capacity resources changes as a result of the
reliability criteria applied to the system. This work overviews for policy and
decision makers the tradeoffs between reliability criteria and generation
investment with high penetrations of intermittent renewables for capacity
planning and market design.
3 - Scheduling Energy Storage Resources to Provide
Multiple Services
Johanna Mathieu, Assistant Professor, University of Michigan,
1301 Beal Ave, Ann Arbor, Mi, 48109, United States of America,
, Goran Andersson, Olivier Megel
Most energy storage devices in power systems are only partially used most of
time, and so they could also be used to help balance electricity supply and
demand. The challenge is how to allocate their energy and power capacities to
different services given uncertainty from multiple sources. We formulate the
scheduling problem and apply both stochastic dynamic programming and
stochastic dual dynamic programming to several case studies, and compare
performance and computational complexity.
4 - Bidding Models for Price-responsive Loads in Electricity Markets
Javier Saez-gallego, PhD Candidate, Technical University of
Denmark, Matematiktorvet Building 303B, 019, Kgs. Lyngby,
2800, Denmark, Juan M. Morales, Marco Zugno
This paper presents a data-driven approach to estimate the parameters of the
market bid that best represents the stochastic and dynamic behavior of a pool of
price-responsive consumers. The proposed methodology is based on inverse
optimization and is able to leverage exogenous information, besides the electricity
price, to partly explain the parameters of the bid. We use data relative to the
Olympic Peninsula project to asses the performance of the proposed method.
TD60
60-Room 111A, CC
Performance Measurement
Contributed Session
Chair: Huan Liu, PhD, Xi’an Jiaotong University, 28# Xianning West
Road, Shaanxi Province, Xi’an, 710049, China,
1 - Rapid Analysis of Attentional Processes While Looking at Print
Advertisements Based on Eye Tracking
Hirotaka Aoki, Dr., Tokyo Institute of Technology, 2-12-1-W9-75,
Oh-Okayama, Meguro-Ku, Tokyo, 152-8552, Japan,
This paper develops an eye tracking-based analysis framework for attentional
processes during viewing print advertisements. The framework consists of a
scheme for classification of information in advertising and principles for data
interpretation from attentional processes perspectives. Based on a case study in
which 20 consumers’ data during looking at insurance advertisements were
collected, the potentials of our framework as well as implications for effective
advertising design are discussed.
2 - Destructive Testing Gauge Capability Analysis
David Kim, Professor, Oregon State University, 204 Rogers,
Corvallis, OR, 97331, United States of America,
Xinyu Luo
This research examines the current state-of-the-art in gauge capability analysis for
destructive testing. Results are then presented that extend the specific destructive
testing situations where gauge repeatability can be estimated.
3 - Project Timeliness or Project Effectiveness:
Which One is Sacrificed?
Asghar Afshar Jahanshahi, Postdoc, Pontifical Catholic University,
Av. Vicuña Mackenna 4860. Macul, Santiago, Chile,
Khaled Nawaser
There is a consensus among scholars that real options reasoning is crucial for
project performance under conditions of high environmental uncertainty.
However, few empirical studies have confirmed this claim. Our longitudinal
analysis of 101 electronic commerce projects, drawn from new technology
ventures, indicated the differential effects of real options reasoning on project
performance under conditions of high environmental state, effect and response
uncertainty.
TD58