IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v13y2020i16p4043-d394616.html
   My bibliography  Save this article

Network and Market-Aware Bidding to Maximize Local RES Usage and Minimize Cost in Energy Islands with Weak Grid Connections

Author

Listed:
  • Konstantinos Smpoukis

    (Department of Electrical and Computer Engineering, Institute of Communication and Computer Systems (ICCS), National Technical University of Athens (NTUA), 15780 Athens, Greece)

  • Konstantinos Steriotis

    (Department of Electrical and Computer Engineering, Institute of Communication and Computer Systems (ICCS), National Technical University of Athens (NTUA), 15780 Athens, Greece)

  • Nikolaos Efthymiopoulos

    (Department of Electrical and Computer Engineering, Institute of Communication and Computer Systems (ICCS), National Technical University of Athens (NTUA), 15780 Athens, Greece)

  • Georgios Tsaousoglou

    (Department of Electrical Engineering, Eindhoven University of Technology, 5612 AP Eindhoven, The Netherlands)

  • Prodromos Makris

    (Department of Electrical and Computer Engineering, Institute of Communication and Computer Systems (ICCS), National Technical University of Athens (NTUA), 15780 Athens, Greece)

  • Emmanouel (Manos) Varvarigos

    (Department of Electrical and Computer Engineering, Institute of Communication and Computer Systems (ICCS), National Technical University of Athens (NTUA), 15780 Athens, Greece)

Abstract

The increasing renewable energy sources RES penetration in today’s energy islands and rural energy communities with weak grid connections is expected to incur severe distribution network stability problems (i.e., congestion, voltage issues). Tackling these problems is even more challenging since RES spillage minimization and energy cost minimization for the local energy community are set as major pre-requisites. In this paper, we consider a Microgrid Operator (MGO) that: (i) gradually decides the optimal mix of its RES and flexibility assets’ (FlexAsset) sizing, siting and operation, (ii) respects the physical distribution network constraints in high RES penetration contexts, and (iii) is able to bid strategically in the existing day-ahead energy market. We model this problem as a Stackelberg game, expressed as a Mathematical Problem with Equilibrium Constraints (MPEC), which is finally transformed into a tractable Mixed Integer Linear Program (MILP). The performance evaluation results show that the MGO can lower its costs when bidding strategically, while the coordinated planning and scheduling of its FlexAssets result in higher RES utilization, as well as distribution network aware and cost-effective RES and FlexAsset operation.

Suggested Citation

  • Konstantinos Smpoukis & Konstantinos Steriotis & Nikolaos Efthymiopoulos & Georgios Tsaousoglou & Prodromos Makris & Emmanouel (Manos) Varvarigos, 2020. "Network and Market-Aware Bidding to Maximize Local RES Usage and Minimize Cost in Energy Islands with Weak Grid Connections," Energies, MDPI, vol. 13(16), pages 1-16, August.
    • Handle: RePEc:gam:jeners:v:13:y:2020:i:16:p:4043-:d:394616
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/13/16/4043/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/13/16/4043/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Steven A. Gabriel & Antonio J. Conejo & J. David Fuller & Benjamin F. Hobbs & Carlos Ruiz, 2013. "Complementarity Modeling in Energy Markets," International Series in Operations Research and Management Science, Springer, edition 127, number 978-1-4419-6123-5, July-Dece.
    2. Zhao, Bo & Chen, Jian & Zhang, Leiqi & Zhang, Xuesong & Qin, Ruwen & Lin, Xiangning, 2018. "Three representative island microgrids in the East China Sea: Key technologies and experiences," Renewable and Sustainable Energy Reviews, Elsevier, vol. 96(C), pages 262-274.
    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. Hernandez-Matheus, Alejandro & Löschenbrand, Markus & Berg, Kjersti & Fuchs, Ida & Aragüés-Peñalba, Mònica & Bullich-Massagué, Eduard & Sumper, Andreas, 2022. "A systematic review of machine learning techniques related to local energy communities," Renewable and Sustainable Energy Reviews, Elsevier, vol. 170(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. Awad, Ahmed S.A. & Ahmed, Mohamed Hassan & El-Fouly, Tarek H.M. & Salama, Magdy M.A., 2017. "The impact of wind farm location and control strategy on wind generation penetration and market prices," Renewable Energy, Elsevier, vol. 106(C), pages 354-364.
    2. Megy, Camille & Massol, Olivier, 2023. "Is Power-to-Gas always beneficial? The implications of ownership structure," Energy Economics, Elsevier, vol. 128(C).
    3. Tom Brijs & Daniel Huppmann & Sauleh Siddiqui & Ronnie Belmans, 2016. "Auction-Based Allocation of Shared Electricity Storage Resources through Physical Storage Rights," Discussion Papers of DIW Berlin 1566, DIW Berlin, German Institute for Economic Research.
    4. Oleksandr Miroshnyk & Oleksandr Moroz & Taras Shchur & Andrii Chepizhnyi & Mohamed Qawaqzeh & Sławomir Kocira, 2023. "Investigation of Smart Grid Operation Modes with Electrical Energy Storage System," Energies, MDPI, vol. 16(6), pages 1-13, March.
    5. Savelli, Iacopo & Morstyn, Thomas, 2021. "Electricity prices and tariffs to keep everyone happy: A framework for fixed and nodal prices coexistence in distribution grids with optimal tariffs for investment cost recovery," Omega, Elsevier, vol. 103(C).
    6. Sébastien Debia & David Benatia & Pierre-Olivier Pineau, 2018. "Evaluating an Interconnection Project: Do Strategic Interactions Matter?," The Energy Journal, , vol. 39(6), pages 99-120, November.
    7. Wang, Lu & Gu, Wei & Wu, Zhi & Qiu, Haifeng & Pan, Guangsheng, 2020. "Non-cooperative game-based multilateral contract transactions in power-heating integrated systems," Applied Energy, Elsevier, vol. 268(C).
    8. Savelli, Iacopo & De Paola, Antonio & Li, Furong, 2020. "Ex-ante dynamic network tariffs for transmission cost recovery," Applied Energy, Elsevier, vol. 258(C).
    9. Wu, Chuantao & Zhou, Dezhi & Lin, Xiangning & Sui, Quan & Wei, Fanrong & Li, Zhengtian, 2022. "A novel energy cooperation framework for multi-island microgrids based on marine mobile energy storage systems," Energy, Elsevier, vol. 252(C).
    10. Debia, Sébastien & Pineau, Pierre-Olivier & Siddiqui, Afzal S., 2021. "Strategic storage use in a hydro-thermal power system with carbon constraints," Energy Economics, Elsevier, vol. 98(C).
    11. Reisi, Mohsen & Gabriel, Steven A. & Fahimnia, Behnam, 2019. "Supply chain competition on shelf space and pricing for soft drinks: A bilevel optimization approach," International Journal of Production Economics, Elsevier, vol. 211(C), pages 237-250.
    12. Löschenbrand, Markus, 2020. "Finding multiple Nash equilibria via machine learning-supported Gröbner bases," European Journal of Operational Research, Elsevier, vol. 284(3), pages 1178-1189.
    13. Lee, Chia-Yen & Wang, Ke, 2019. "Nash marginal abatement cost estimation of air pollutant emissions using the stochastic semi-nonparametric frontier," European Journal of Operational Research, Elsevier, vol. 273(1), pages 390-400.
    14. Yelena Vardanyan & Henrik Madsen, 2019. "Stochastic Bilevel Program for Optimal Coordinated Energy Trading of an EV Aggregator," Energies, MDPI, vol. 12(20), pages 1-18, October.
    15. Zhou, Dezhi & Wu, Chuantao & Sui, Quan & Lin, Xiangning & Li, Zhengtian, 2022. "A novel all-electric-ship-integrated energy cooperation coalition for multi-island microgrids," Applied Energy, Elsevier, vol. 320(C).
    16. E. Allevi & L. Boffino & M. E. Giuli & G. Oggioni, 2018. "Evaluating the impacts of the external supply risk in a natural gas supply chain: the case of the Italian market," Journal of Global Optimization, Springer, vol. 70(2), pages 347-384, February.
    17. Matar, Walid & Murphy, Frederic & Pierru, Axel & Rioux, Bertrand, 2015. "Lowering Saudi Arabia's fuel consumption and energy system costs without increasing end consumer prices," Energy Economics, Elsevier, vol. 49(C), pages 558-569.
    18. Nikita Belyak & Steven A. Gabriel & Nikolay Khabarov & Fabricio Oliveira, 2023. "Renewable Energy Expansion under Taxes and Subsidies: A Transmission Operator's Perspective," Papers 2302.10562, arXiv.org, revised Apr 2024.
    19. Löschenbrand, Markus & Wei, Wei & Liu, Feng, 2018. "Hydro-thermal power market equilibrium with price-making hydropower producers," Energy, Elsevier, vol. 164(C), pages 377-389.
    20. Afzal S. Siddiqui & Sauleh A. Siddiqui, 2022. "Ambiguities and nonmonotonicities under prosumer power," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 30(3), pages 492-532, October.

    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:gam:jeners:v:13:y:2020:i:16:p:4043-:d:394616. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.