Informs Annual Meeting Phoenix 2018

INFORMS Phoenix – 2018

SC46

n SC45 North Bldg 228A Environmental and Social Impacts of Power System Expansion Investments Sponsored: Energy, Natural Res & the Environment/Electricity Sponsored Session Chair: Enzo E. Sauma, Pontificia Universidad Catolica de Chile, Santiago, Chile 1 - A Mechanism for Allocating Benefits and Costs from Transmission Interconnections under Cooperation: A Case Study of the North Sea Offshore Grid Francisco Munoz, PhD, Universidad Adolfo Ibañez, Santiago, Chile, Martin Kristiansen, Shmuel S. Oren, Magnus Korpas We propose a generic mechanism to allocate these benefits among neighboring countries that are willing to reach a cooperative agreement to support a set of cost-efficient projects. Our mechanism is based on a planning model that considers generation investments as a response to transmission developments and the Shapley Value from cooperative game theory. Conveniently, this method provides a unique allocation that a) satisfies an axiomatic definition of fairness and b) considers each country’s expected marginal contribution to the cooperative agreement. We demonstrate our results for three planned cross-border transmission projects in the North Sea. 2 - Graphical Models for Transmission Expansion Planning David Pozo, PhD, Skolkovo Institute of Science and Technology, Moscow, Russian Federation, Ivan Zorin Transmission Expansion Planning (TEP) should account for the possible futures foresight of parameters such as demand’s growth, level of renewables’ penetration or cost of primary energy resources. Although the TEP solution should accommodate to any possible realization of uncertainties, the decision has to be made beforehand. Therefore, TEP problem should thoughtfully recognize all potential uncertainties, via experts’ knowledge and forecasting tools. However, finding distributions for uncertain parameters is a hard problem too. Our proposed approach to addresses the TEP problem as a combination of graphical models and mathematical optimization techniques. 3 - Environmental Impact on the Development of the Expansion of Power Transmission Enzo E. Sauma, Pontificia Universidad Catolica de Chile, Ave. Vicuna Mackenna 4860, Santiago, Chile, Carlos Matamala, Rodrigo Moreno We develop a model for expanding the capacity of the electrical system that co- optimizes the expansion planning of generation and transmission and considers different levels of coordination among market agents. Using this model, we study the influence of environmental and social externalities in the planning of the expansion of power transmission. We show there may be significant interactions between the environmental and social externalities and the development of the power transmission expansion. 4 - Economic Externalities in Transmission Network Expansion Planning Javier Contreras, Univ de Castilla-La Mancha, E. T. S. de Ingenieros Industriales, Campus Universitario, Ciudad Real, 13071, Spain, Hans Alayo, Marcos J. Rider Since opportunity costs in transmission and generation capacity are dependent, externalities arise when investment decisions are decentralized. When generation and transmission investment decisions are made separately, generation investment introduces negative externalities to transmission planning. A centralized multistage stochastic model is formulated for finding the Pareto optimal solution of investments in transmission and generation capacity. Using the model, we show some examples of externalities in transmission planning for the IEEE 24-bus test system and the Peruvian system.

n SC46 North Bldg 228B Distributed Energy Resources Sponsored: Energy, Natural Res & the Environment/Energy Sponsored Session Chair: Andrea Staid, Sandia National Labs, Albuquerque, NM, 87108, United States 1 - Practical Challenges in Real-time Optimization of Distributed Energy Resources Cesar A. Silva-Monroy, Senior Scientist, EnerNOC, 24001 East Mission Ave. Suite 102, Liberty Lake, WA, 99019, United States Distributed Energy Resources (DERs) offer tremendous potential for increasing the flexibility and resilience of the grid. DERs can help utilities and grid operators to cost-effectively manage electricity demand growth, congestion, power quality, and reserve allocation. DERs can also increase reliability while reducing electricity costs for end consumers. In this presentation we will review typical Behind-The- Meter (BTM) value streams found in DER optimization applications from an aggregator or energy manager perspective. We’ll then discuss practical challenges that arise when deploying real-time optimization in BTM applications and offer insights on how to address some of them. 2 - Resources in the MIP Gap of Near-optimal RTO-scale Unit Commitment Solutions Brent Eldridge, Johns Hopkins University, 811 Park Ave. #5, Baltimore, MD, 21201, United States Electricity markets schedule resources by solving a large-scale mixed integer program called the unit commitment (UC) problem. Due to the size of the market, UC is almost never solved to a provably optimal solution. It is instead solved to satisfy an optimality gap that may be larger than small distributed resources which are expected to be more prevalent in the coming decades. This presentation discusses arbitrariness and consistency of resource profitability in near-optimal integer solutions and how these issues are affected by new pricing methods. Preliminary results for a large-scale unit commitment problem are presented. 3 - Distributed Resources and Complications for System Planning Andrea Staid, Sandia National Laboratories, Albuquerque, NM, 87108, United States, Anya Castillo, Jean-Paul Watson Distributed energy resources, such as rooftop solar, are growing quickly. Utility companies and grid operators often have limited visibility into these resources, and obtaining accurate energy production forecasts for uncertain resources is challenging. Here, we evaluate the impact of the quality of information available to operators in terms of capacity and forecast quality on overall grid operations. We also study the differences in forecast error by resource type to determine the impacts of growing distributed capacities in system planning. 4 - Stochastic Optimization with Risk Aversion for Virtual Power Plant Operations Anya Castillo, Sandia National Laboratories, MS 1027, P.O. Box 5800, Albuquerque, NM, 87185-1027, United States Sandia National Laboratories undertook a three-year research program to create the components of a real-world secure, virtual power plant (VPP) that could simultaneously participate in multiple markets. We determine optimal offers using a rolling horizon control that solves a two-stage stochastic program (SP) with risk aversion for each day-ahead and real-time problems. Real clear sky and cloudy sky results indicate that the overall risk exposure for each offer strategy can enable the VPP operator to hedge against the volatility introduced by aggregating renewable DERs.

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