A DYNAMIC FRAMEWORK FOR SMART ENERGY SYSTEMS Opportunities & Challenges

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1 A DYNAMIC FRAMEWORK FOR SMART ENERGY SYSTEMS Opportunities & Challenges Anuradha M. Annaswamy Active adaptive Control Laboratory Department of Mechanical Engineering Massachusetts Institute of Technology 1 2nd Annual Transatlantic Symposium on ICT and Policy, Washington DC, USA, June 18 19, 2018

2 Current Power Grids and Control Information flow Energy flow Control goals: Ensure Generation Distribution Consumers Network Operations Distribution Conventional Grid Transmission Industrial Consumers Power balance Operating limits are maintained Generators limit Tie lines limit Regulation of frequency (around 50 Hz or 60Hz). Regulation of voltage (around 110V or 220V) Maintain Transient Stability Significant drivers are causing drastic changes in the Power Grid landscape 2 2nd Annual Transatlantic Symposium on ICT and Policy, Washington DC, USA, June 18 19, 2018

3 GRID CONTROL: CURRENT PRACTICE Energy (adapted from Vision for Smart Grid Control, IEEE Publication, nd Annual Transatlantic Symposium on ICT 3and Policy, Washington DC, USA, June 18 19, 2018

4 GRID CONTROL: CURRENT PRACTICE 2nd Annual Transatlantic Symposium on ICT and Policy, Washington DC, USA, June 18 19,

5 Intermittency: Wind Energy From Integration of renewable resources, CA ISO Report, Aug In almost every operating hour, wind could be producing across the full range of its potential production, from close to zero to almost maximum output. 2nd Annual Transatlantic Symposium on ICT and Policy, Washington DC, USA, June 18 19,

6 (Source: California Energy Commission California Institute for Energy and Environment MAY 2014) Operation Control for stability Rotor angle Frequency Voltage Optimization Power losses Reactive power Planning Markets SCUC, DAM,RTM Regulatory concerns Policies 6 Reorganization of time scales in markets and control is needed

7 Power Grids & ICT Smart Grids (adapted from Vision for Smart Grid Control, IEEE Publication, nd Annual Transatlantic Symposium on 7ICT and Policy, Washington DC, USA, June 18 19, 2018

8 Smart Energy Systems Transmission system Renewables Microgrids Distribution system Electric vehicles Bulk generation Power electronics Storage Consumer Demand response Load serving entities Markets (adapted from Vision for Smart Grid Control, IEEE Publication, Role of ICT and real time decision making between disparate agents is central! 8

9 Opportunities for Smart Energy Systems Renewable Energy Resources (RER) & Demand Response (DR) Natural Gas (C) (A): Dynamic Market Structures for RER Integration (B): Hierarchicalhybrid networks for Efficient Volt var Control (C): A Joint Partnership between RER and NG Generation Transmission Distribution Consumers (A) Real time Markets Regulation Markets Distribution Markets Markets and Control Dynamic Market Mechanisms (B) Frequency Control Volt Var Control Smart Inverters 9 2nd Annual Transatlantic Symposium on ICT and Policy, Washington DC, USA, June 18 19, 2018

10 BULK ENERGY AND TRANSMISSION: (A) DMM FOR REAL TIME MARKETS 2nd Annual Transatlantic Symposium on ICT and Policy, Washington DC, USA, June 18 19,

11 Economic dispatch today Collect cost curves Find optimal dispatch Communicate set points Generation ISO Flexible demand Periodic with a regular interval. Single iteration process. Centralized computation. Inflexible load Automatic generation control Reorganization of timescales to accommodate realtime information is needed. Generation set points Economic dispatch interval Time 2nd Annual Transatlantic Symposium on ICT and Policy, Washington DC, USA, June 18 19,

12 DMM: A fast market solution that incorporates real time data Approach: Iterative negotiations over a wide area network* Minimize cost Maximize utility Market Players GenCo s, ConCo s Power and Price Bids Power Dispatch and LMP s ISO Ensure grid feasibility x x x k 1 k k k 1 k k : states of players and ISO : Lagrange multiplier (LMP) Challenges addressed: Computation time Most information must be kept private Stability Conventional generation Renewable generation Demand response Voltage angles 2nd Annual Transatlantic Symposium on ICT and Policy, Washington DC, USA, June 18 19,

13 Possible Gains*: Ex. IEEE 118 bus Renewable * J. Hansen, J. Knudsen, A. M. Annaswamy. "A Dynamic Market Mechanism for Integration of Renewables and Demand Response, IEEE Transactions on Control Systems Technology, vol. 24, No. 3, Challenges: Incorporation of multiple, strategic end users Multiple time scales from Day Ahead to Regulation Markets 2nd Annual Transatlantic Symposium on ICT and Policy, Washington DC, USA, June 18 19,

14 DISTRIBUTION GRIDS: (B): HIERARCHICAL HYBRID NETWORKS FOR EFFICIENT VOLT VAR CONTROL 2nd Annual Transatlantic Symposium on ICT and Policy, Washington DC, USA, June 18 19,

15 FEATURES OF DISTRIBUTED GRIDS Large number of nodes Increasing intelligence Large Distributed Generation Flexible Consumption Storage can be integrated into the design Distributed paradigms are needed 2nd Annual Transatlantic Symposium on ICT and Policy, Washington 15 DC, USA, June 18 19, 2018

16 A Possible Solution: Hierarchical Hybrid Architecture* 3 to 10% reduction in active power losses Within [0.93, 1.04]p.u. Minimal switches in tap settings 80% of the DGs were assumed to be renewables Challenges: Distributed optimization with a large number of agents Need for a Retail Market * A.R. Malekpour, A.M. Annaswamy, J. Shah, Resilient control designs for smart distribution grids, Resiliency of Power Distribution Systems (eds. Srivastava, Liu, and Chanda) Springer, nd Annual Transatlantic Symposium on ICT and Policy, Washington DC, USA, June 18 19,

17 NATURAL GAS AND ELECTRICITY INFRASTRUCTURES (C): MODELS FOR ESTIMATION OF GAS PRICES AND GAS BID VOLATILITY 2nd Annual Transatlantic Symposium on ICT and Policy, Washington DC, USA, June 18 19,

18 Implications of Renewable Generation Generation Mix (as of Nov 28, 2014) Potential Generation Mix with increasing renewables Nuclear Gas Oil Coal Gas Renewable Renewable Challenges: Misalignment in Gas and Electricity Markets; Unequal access to 2nd Annual Transatlantic Symposium on ICT and Policy, Washington DC, USA, June 18 19,

19 Implications of Renewable Generation Potential Generation Mix with increasingg renewables Bus Frequencies [Hz] Gas Oil Renewable T ime [s] If gas plants cannot meet their dispatch needs hourly and make up for renewable generation fluctuations, there can be a power imbalance, leading to frequency errors 2nd Annual Transatlantic Symposium on ICT and Policy, Washington DC, USA, June 18 19,

20 Reliability Contracts between WPP and NGPP? WPP: Record Hill 50.6 MW NGPP: Rumford 258 MW Roxbury, ME pricing node KEY WPPs NGPPs Electric transmission Algonquin NG Pipeline Tennessee NG Pipeline Projects Tennessee NG Pipeline Operating Portland Pipeline Maritimes and Northeast Pipeline Map developed in SNL Energy S&P Global Market Intelligence 20 2nd Annual Transatlantic Symposium on ICT and Policy, Washington DC, USA, June 18 19, 2018

21 Simulation Improved Renewable Utilization WPP generation developed with NREL System Advisory Model 21 2nd Annual Transatlantic Symposium on ICT and Policy, Washington DC, USA, June 18 19, 2018

22 Simulation Reliability Contract Yearly Cash Flows* set to 3 calculated as Renewable utilization increase from 66% to 78% 2nd Annual Transatlantic Symposium on ICT and Policy, Washington DC, USA, June 18 19, 2018 Yearly profits increase by $1.07 million for each party * D. D Achiardi, N. Aguiar, S. Baros, V. Gupta, and A.M. Annaswamy, Reliability Contracts between Renewable and Natural Gas Power Producers, IEEE TCNS (submitted),

23 Challenges & Opportunities Large and varied uncertainties and intermittencies Significant conflicts between local objectives and global outcomes Disparate network and regulation structures in the gas and electricity infrastructures. 100% renewable penetration Resilient and reliable power delivery [1] Brown, P. How does wind generation impact competitive power markets?. Congressional Research Service, [2] Bitar, E., et al. "Selling random wind th Hawaii International Conference on. IEEE, nd Annual Transatlantic Symposium on ICT and Policy, Washington DC USA June

24 Vision for Smart Energy Systems Transmission system Renewables Microgrids Distribution system Electric vehicles Bulk generation Power electronics Storage Consumer Demand response Load serving entities Markets Role of ICT and real time decision making between disparate agents is central! 24