IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v259y2020ics0306261919317908.html
   My bibliography  Save this article

Distribution locational marginal price-based transactive day-ahead market with variable renewable generation

Author

Listed:
  • Faqiry, M. Nazif
  • Edmonds, Lawryn
  • Wu, Hongyu
  • Pahwa, Anil

Abstract

The large-scale penetration of variable renewable energy and their generation uncertainties poses a major challenge for the distribution system operator to efficiently determine the day-ahead real and reactive power distribution locational marginal prices and their underlying components. In this paper, we propose a distribution locational marginal price-based transactive day-ahead market model, that in addition to energy and losses, determines prices for creating congestions and voltage violations under peak-load and large-scale stochastic variable renewable energy penetration conditions. To account for the variable renewable energy uncertainties and the effect of their large-scale penetration on the distribution locational marginal price components and distributed energy resources’ schedules, we use a novel data-driven probability efficient point method that computes the optimal total variable renewable energy generation at different confidence (risk) levels to incorporate in the proposed transactive day-ahead market model. We perform a wide range of simulation studies on a modified Pacific Gas & Electric 69-node system to validate the proposed methods and demonstrate the effect of peak load conditions, large-scale variable renewable energy penetration, and integration of battery energy storage systems on the resulting positive or negative real and reactive power distribution locational marginal prices and their components.

Suggested Citation

  • Faqiry, M. Nazif & Edmonds, Lawryn & Wu, Hongyu & Pahwa, Anil, 2020. "Distribution locational marginal price-based transactive day-ahead market with variable renewable generation," Applied Energy, Elsevier, vol. 259(C).
    • Handle: RePEc:eee:appene:v:259:y:2020:i:c:s0306261919317908
    DOI: 10.1016/j.apenergy.2019.114103
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261919317908
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.apenergy.2019.114103?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. M. Nazif Faqiry & Lawryn Edmonds & Haifeng Zhang & Amin Khodaei & Hongyu Wu, 2017. "Transactive-Market-Based Operation of Distributed Electrical Energy Storage with Grid Constraints," Energies, MDPI, vol. 10(11), pages 1-17, November.
    2. Kim, Youngjin & Norford, Leslie K., 2017. "Optimal use of thermal energy storage resources in commercial buildings through price-based demand response considering distribution network operation," Applied Energy, Elsevier, vol. 193(C), pages 308-324.
    3. Gu, Chenghong & Yan, Xiaohe & Yan, Zhang & Li, Furong, 2017. "Dynamic pricing for responsive demand to increase distribution network efficiency," Applied Energy, Elsevier, vol. 205(C), pages 236-243.
    4. Liu, Fan & Bie, Zhaohong & Liu, Shiyu & Ding, Tao, 2017. "Day-ahead optimal dispatch for wind integrated power system considering zonal reserve requirements," Applied Energy, Elsevier, vol. 188(C), pages 399-408.
    5. Zhao, Jinli & Zhang, Mengzhen & Yu, Hao & Ji, Haoran & Song, Guanyu & Li, Peng & Wang, Chengshan & Wu, Jianzhong, 2019. "An islanding partition method of active distribution networks based on chance-constrained programming," Applied Energy, Elsevier, vol. 242(C), pages 78-91.
    6. Lejeune, Miguel & Noyan, Nilay, 2010. "Mathematical programming approaches for generating p-efficient points," European Journal of Operational Research, Elsevier, vol. 207(2), pages 590-600, December.
    7. Fang, Xin & Cui, Hantao & Yuan, Haoyu & Tan, Jin & Jiang, Tao, 2019. "Distributionally-robust chance constrained and interval optimization for integrated electricity and natural gas systems optimal power flow with wind uncertainties," Applied Energy, Elsevier, vol. 252(C), pages 1-1.
    8. Abdelmotteleb, Ibtihal & Gómez, Tomás & Chaves Ávila, José Pablo & Reneses, Javier, 2018. "Designing efficient distribution network charges in the context of active customers," Applied Energy, Elsevier, vol. 210(C), pages 815-826.
    9. Correa-Florez, Carlos Adrian & Michiorri, Andrea & Kariniotakis, Georges, 2018. "Robust optimization for day-ahead market participation of smart-home aggregators," Applied Energy, Elsevier, vol. 229(C), pages 433-445.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Li, Junkai & Ge, Shaoyun & Liu, Hong & Zhang, Shida & Wang, Chengshan & Wang, Pengxiang, 2023. "Distribution locational pricing mechanisms for flexible interconnected distribution system with variable renewable energy generation," Applied Energy, Elsevier, vol. 335(C).
    2. Xu, Fangyuan & Zhu, Weidong & Wang, Yi Fei & Lai, Chun Sing & Yuan, Haoliang & Zhao, Yujia & Guo, Siming & Fu, Zhengxin, 2022. "A new deregulated demand response scheme for load over-shifting city in regulated power market," Applied Energy, Elsevier, vol. 311(C).
    3. Schwidtal, J.M. & Piccini, P. & Troncia, M. & Chitchyan, R. & Montakhabi, M. & Francis, C. & Gorbatcheva, A. & Capper, T. & Mustafa, M.A. & Andoni, M. & Robu, V. & Bahloul, M. & Scott, I.J. & Mbavarir, 2023. "Emerging business models in local energy markets: A systematic review of peer-to-peer, community self-consumption, and transactive energy models," Renewable and Sustainable Energy Reviews, Elsevier, vol. 179(C).
    4. Akter, M.N. & Mahmud, M.A. & Haque, M.E. & Oo, Amanullah M.T., 2020. "An optimal distributed energy management scheme for solving transactive energy sharing problems in residential microgrids," Applied Energy, Elsevier, vol. 270(C).
    5. Younes Zahraoui & Tarmo Korõtko & Argo Rosin & Hannes Agabus, 2023. "Market Mechanisms and Trading in Microgrid Local Electricity Markets: A Comprehensive Review," Energies, MDPI, vol. 16(5), pages 1-52, February.
    6. Capper, Timothy & Gorbatcheva, Anna & Mustafa, Mustafa A. & Bahloul, Mohamed & Schwidtal, Jan Marc & Chitchyan, Ruzanna & Andoni, Merlinda & Robu, Valentin & Montakhabi, Mehdi & Scott, Ian J. & Franci, 2022. "Peer-to-peer, community self-consumption, and transactive energy: A systematic literature review of local energy market models," Renewable and Sustainable Energy Reviews, Elsevier, vol. 162(C).
    7. Zhang, Kaizhe & Xu, Yinliang & Sun, Hongbin, 2024. "Bilevel optimal coordination of active distribution network and charging stations considering EV drivers' willingness," Applied Energy, Elsevier, vol. 360(C).
    8. Alam, Mollah Rezaul & Alam, M.J.E. & Somani, Abhishek & Melton, Ronald B. & Tushar, Wayes & Bai, Feifei & Yan, Ruifeng & Saha, Tapan K., 2021. "Evaluating the feasibility of transactive approach for voltage management using inverters of a PV plant," Applied Energy, Elsevier, vol. 291(C).
    9. Edmonds, Lawryn & Derby, Melanie & Hill, Mary & Wu, Hongyu, 2021. "Coordinated operation of water and electricity distribution networks with variable renewable energy and distribution locational marginal pricing," Renewable Energy, Elsevier, vol. 177(C), pages 1438-1450.
    10. Alizadeh, Ali & Kamwa, Innocent & Moeini, Ali & Mohseni-Bonab, Seyed Masoud, 2023. "Energy management in microgrids using transactive energy control concept under high penetration of Renewables; A survey and case study," Renewable and Sustainable Energy Reviews, Elsevier, vol. 176(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shen, Feifei & Zhao, Liang & Du, Wenli & Zhong, Weimin & Qian, Feng, 2020. "Large-scale industrial energy systems optimization under uncertainty: A data-driven robust optimization approach," Applied Energy, Elsevier, vol. 259(C).
    2. Edmonds, Lawryn & Derby, Melanie & Hill, Mary & Wu, Hongyu, 2021. "Coordinated operation of water and electricity distribution networks with variable renewable energy and distribution locational marginal pricing," Renewable Energy, Elsevier, vol. 177(C), pages 1438-1450.
    3. Osaru Agbonaye & Patrick Keatley & Ye Huang & Motasem Bani Mustafa & Neil Hewitt, 2020. "Design, Valuation and Comparison of Demand Response Strategies for Congestion Management," Energies, MDPI, vol. 13(22), pages 1-29, November.
    4. Pan, Guangsheng & Gu, Wei & Wu, Zhi & Lu, Yuping & Lu, Shuai, 2019. "Optimal design and operation of multi-energy system with load aggregator considering nodal energy prices," Applied Energy, Elsevier, vol. 239(C), pages 280-295.
    5. Schauf, Andrew & Oh, Poong, 2021. "Myopic reallocation of extraction improves collective outcomes in networked common-pool resource games," SocArXiv w2cxp, Center for Open Science.
    6. Savelli, Iacopo & De Paola, Antonio & Li, Furong, 2020. "Ex-ante dynamic network tariffs for transmission cost recovery," Applied Energy, Elsevier, vol. 258(C).
    7. Golpîra, Hêriş & Khan, Syed Abdul Rehman, 2019. "A multi-objective risk-based robust optimization approach to energy management in smart residential buildings under combined demand and supply uncertainty," Energy, Elsevier, vol. 170(C), pages 1113-1129.
    8. Wu, Di & Ma, Xu & Balducci, Patrick & Bhatnagar, Dhruv, 2021. "An economic assessment of behind-the-meter photovoltaics paired with batteries on the Hawaiian Islands," Applied Energy, Elsevier, vol. 286(C).
    9. Hennig, Roman J. & Ribó-Pérez, David & de Vries, Laurens J. & Tindemans, Simon H., 2022. "What is a good distribution network tariff?—Developing indicators for performance assessment," Applied Energy, Elsevier, vol. 318(C).
    10. Richstein, Jörn C. & Hosseinioun, Seyed Saeed, 2020. "Industrial demand response: How network tariffs and regulation (do not) impact flexibility provision in electricity markets and reserves," Applied Energy, Elsevier, vol. 278(C).
    11. Lizana, Jesús & Chacartegui, Ricardo & Barrios-Padura, Angela & Ortiz, Carlos, 2018. "Advanced low-carbon energy measures based on thermal energy storage in buildings: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 82(P3), pages 3705-3749.
    12. Liu, Fan & Duan, Jiandong & Wu, Chen & Tian, Qinxing, 2024. "Risk-averse distributed optimization for integrated electricity-gas systems considering uncertainties of Wind-PV and power-to-gas," Renewable Energy, Elsevier, vol. 227(C).
    13. Li, Zening & Su, Su & Jin, Xiaolong & Chen, Houhe, 2021. "Distributed energy management for active distribution network considering aggregated office buildings," Renewable Energy, Elsevier, vol. 180(C), pages 1073-1087.
    14. Capper, Timothy & Gorbatcheva, Anna & Mustafa, Mustafa A. & Bahloul, Mohamed & Schwidtal, Jan Marc & Chitchyan, Ruzanna & Andoni, Merlinda & Robu, Valentin & Montakhabi, Mehdi & Scott, Ian J. & Franci, 2022. "Peer-to-peer, community self-consumption, and transactive energy: A systematic literature review of local energy market models," Renewable and Sustainable Energy Reviews, Elsevier, vol. 162(C).
    15. Liang, Zheming & Bian, Desong & Zhang, Xiaohu & Shi, Di & Diao, Ruisheng & Wang, Zhiwei, 2019. "Optimal energy management for commercial buildings considering comprehensive comfort levels in a retail electricity market," Applied Energy, Elsevier, vol. 236(C), pages 916-926.
    16. Bovera, Filippo & Delfanti, Maurizio & Fumagalli, Elena & Lo Schiavo, Luca & Vailati, Riccardo, 2021. "Regulating electricity distribution networks under technological and demand uncertainty," Energy Policy, Elsevier, vol. 149(C).
    17. Mak, Davye & Choi, Dae-Hyun, 2020. "Optimization framework for coordinated operation of home energy management system and Volt-VAR optimization in unbalanced active distribution networks considering uncertainties," Applied Energy, Elsevier, vol. 276(C).
    18. Ishizaki, Takayuki & Koike, Masakazu & Yamaguchi, Nobuyuki & Ueda, Yuzuru & Imura, Jun-ichi, 2020. "Day-ahead energy market as adjustable robust optimization: Spatio-temporal pricing of dispatchable generators, storage batteries, and uncertain renewable resources," Energy Economics, Elsevier, vol. 91(C).
    19. Minsheng Yang & Jianqi Li & Rui Du & Jianying Li & Jian Sun & Xiaofang Yuan & Jiazhu Xu & Shifu Huang, 2022. "Reactive Power Optimization Model for Distribution Networks Based on the Second-Order Cone and Interval Optimization," Energies, MDPI, vol. 15(6), pages 1-16, March.
    20. Menghwar, Mohan & Yan, Jie & Chi, Yongning & Asim Amin, M. & Liu, Yongqian, 2024. "A market-based real-time algorithm for congestion alleviation incorporating EV demand response in active distribution networks," Applied Energy, Elsevier, vol. 356(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:appene:v:259:y:2020:i:c:s0306261919317908. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.