Renewables in Electricity Markets

Transcription

1 Renewables in Electricity Markets. Introduction Pierre Pinson Technical University of Denmark. DTU Electrical Engineering - Centre for Electric Power and Energy mail: ppin@dtu.dk - webpage: 29 January / 34

2 Outline 1 Our playground and the problem 2 Who are we, who are you? 3 Course contents and evaluation 4 Readings 5 Practical information 2 / 34

3 1 Our playground and the problem 3 / 34

4 Our playground: electricity markets Scandinavia (as a representative EU-type market): Midwest US (as a representative US-type market): Go visit: Nord Pool - zonal prices Go visit: MISO market - LMP contour map 4 / 34

5 Europe: all in it together! Go visit: ENTSO-E transparency platform 5 / 34

6 Here comes the mess: wind (and solar) power! Total: 154 GW (Dec. 2015, source: European Wind Energy Association - EWEA) Worldwide: 560 GW for wind energy, and 350 GW for solar energy 6 / 34

7 Denmark at the forefront Early 2016, articles appeared in the The Guardian (UK), The Huffington Post (US), phys.org, etc. Denmark was breaking its own record with 42% of electric energy consumption covered by wind over 2015! 7 / 34

8 Denmark at the forefront Early 2016, articles appeared in the The Guardian (UK), The Huffington Post (US), phys.org, etc. Denmark was breaking its own record with 42% of electric energy consumption covered by wind over 2015! Well... the record was broken again in 2017, with nearly 44% of consumption covered by wind. 8 / 34

9 Where is this going... Opinions? 9 / 34

10 Where is this going... Opinions? If you do not have much opinions yourself, a lot of other people actually do... e.g., T.D. Couture, D. Jacobs (2013). The Future of Electricity Markets. Renewable Energy World... as well as regular articles in local and more global media like The Economist for instance. And if you are eager to read more, Eurelectric and the Florence School of Regulation just released an open e-book on future electricity markets: Design the Electricity Market(s) of the future 10 / 34

11 Suggested pre-requisites On the energy side: Energy Economics, Markets and Policies Modelling and Analysis of Sustainable Energy Systems using Operations Research Optimization in Modern Power Systems And on the math/stat/opimization side (a nice plus): Time Series Analysis Optimization in Finance Introduction to Machine Learning and Data Modelling plus potentially others... like Electric Power Engineering, Fundamentals as well as a little flair for programming! 11 / 34

12 What do you want to learn from this course? 12 / 34

13 Learning objectives A student who has met the objectives of the course will be able to: 1 Explain the fundamentals of electricity markets 2 Describe the impact of renewables on electricity markets 3 Collect and analyse datasets of relevance in electricity markets 4 Model and forecast relevant quantities, e.g., load, prices, or renewable energy generation 5 Design and apply offering strategies in electricity markets 6 Write and solve relevant optimization problems for market-clearing and offering strategies 7 Analyse and present the results to a broad audience Ambitious... but feasible! 13 / 34

14 2 Who are we, who are you 14 / 34

15 In brief Pierre Pinson Professor DTU Elektro Centre for Electric Power and Energy Head of Energy Analytics & Markets Visiting researcher/visiting Professor at 1 University of Cambridge, Isaac Newton Institute (UK, 2019) 2 Ecole Normale Supérieure (France, 2016) 3 European Centre for Medium-range Weather Forecasts (UK, ) 4 University of Washington, Dpt. Statistics (US, 2009), 5 University of Oxford, Dpt. Mathematics (UK, 2009) Ph.D. (Energetics) from Ecole des Mines de Paris, France M.Sc. (Applied Maths) from National Institute for Applied Sciences, Toulouse, France 15 / 34

16 The Energy Analytics & Markets group at DTU One of the 5 groups of the Center for Electric Power and Energy, Dpt. of Electrical Engineering Resources: (10 nationalities) Faculty: 1 Prof, 2 Assist. Profs. Junior: 2 post-doc fellows, 10 Ph.D. students, 1 research assistant + student helpers, and Ph.D. guests from, e.g., China, Brazil, US, Spain, France, Italy, The Netherlands, Germany, etc. Projects: funding from EU, Danish research councils, industry, with many international collaborations Education: Various courses in energy analytics, forecasting, optimization and markets Impact: Recognized internationally leading expertise in energy analytics and markets. Works presented and discussed at MIT, Cambridge, Oxford, Stanford, ETH, EPFL, Imperial College, etc. 16 / 34

17 Overview of focus areas Forecasting Data-driven optimization Open access datasets Open courses Energy analytics & Markets Data-driven analytics Data exchange models Open-source software Open dissemination Mechanism design Energy markets Systems Uncertainty, variability & flexibility Behavioural economics Consumers at the centre! Offering & trading Gametheoretical aspects Stochastic & distributed optimization 17 / 34

18 ... plus guest lecturers Lena Kitzing Researcher, DTU Management Engineering Tue V. Jensen Post-doc, DTU Elektro Piret Stern Dahl Online Education Project Coordinator, CLIMATE-KIC Active member of Energy Crossroads Denmark ENSIGHT facilitator 18 / 34

19 And 4 teaching assistants Adélie Barré Dragos-Ioan Bogatu Fabio Moret Chiara di Modica 19 / 34

20 And you, who are you? Click to reach the poll (on socrative.com) Go to: Student Log In Room number: It should take you less than 5 minutes / 34

21 3 Course contents, schedule and evaluation 21 / 34

22 Course contents and schedule (tentative) All information related to the course is available at the course webpage This includes: General course description Learning objectives Lectures and slides Extra suggested readings Exercise sessions Assignments, etc. Especially, the course schedule is available at this link Lecture sessions will take place in 341, aud. 21 Exercise sessions (/assignment time) will take place in 325, databars IT017 and IT025 The game session on 19 February 2017 will be in Glassalen (bg. 101) 22 / 34

23 Feedback after 2017 Grade distribution Student feedback, course improvement(s): Course participants were very happy overall, and got very good grades! Implemented improvements following detailed feedback: lightening (a bit) assignments more topics and going deeper into them more support with additional TAs etc. 23 / 34

24 Assignments and evaluation The course and its evaluation rely on 4 assignments: Assignment 1: Build and operate a realistic electricity market! Assignment 2: Participation and revenue optimization of a renewable energy producer in the electricity market Assignment 3: Renewable energy forecasting: Let s compete! Assignments 1-3 will count for 33% of the final grade, based on a short report describing the assignment work These are: performed over a period of 3-4 weeks, preferably in groups of 2 or 3 (can also be done individually). Contributions have to be clearly stated at the beginning (or end) of the report 24 / 34

25 4 Readings (general) 25 / 34

26 Readings: a classic! Fundamentals of Power System Economics Available as a free e-book through DTU Findit Written by 2 famous Professors in Electrical Engineering D. Kirschen in Uni. Washington, Seattle G. Strbac at Imperial College, London However: Electricity markets are only part of the bigger picture (e.g., transmission pricing, etc.) Renewables are not considered 26 / 34

27 Readings: another classic Electricity Markets - Pricing, Structures and Economics Available as a free e-book through DTU Findit Very interesting and extensive coverage of electricity markets as part of the bigger picture (history, regulation, financial modelling of power plants, etc.) However, renewables are also not considered! 27 / 34

28 Readings: a third classic Power System Economics - Designing Markets for Electricity NOT available as a free e-book through DTU Findit Already used in the course (Energy Economics, Markets and Policies) However, renewables are also not considered! The author s webpage: 28 / 34

29 More recent The Economics of Electricity Markets Available as a free e-book through DTU Findit Good coverage of some of the topics we will be interested in, as well as further problems related to investment, market power, etc. 29 / 34

30 More recent with focus on renewables Integrating Renewables in Electricity Markets Available as a free e-book through DTU Findit More advanced in terms of the mathematical aspects of renewables in electricity markets 30 / 34

31 5 Practical information 31 / 34

32 Practical information Data analysis, programming and optimization are to be done in R, Matlab, Python (Excel not recommended, except for the in-class exercise of Lena!!) GAMS, Mosek, Gurobi For those who would like to install and play with R... for those who use windows, please go to this link for installation: for those who use Ubuntu/Debian, please go to this link for installation: finally for those on Mac OS, please go to this link for installation: All slides, schedule, info, etc. are available on the course website: id=913 (plus extra material if you are interested in renewables modelling, forecasting, electricity markets, etc.) 32 / 34

33 Contacts Course responsible: Pierre Pinson / tel: Teaching assistants: Fabio Adélie Chiara Dragos 33 / 34

34 Thanks for your attention! I am available during the breaks and after the lectures for questions / 34