Electricity Markets & Decision-Making Architectures: A Match Made in Heaven

Transcription

1 Market Power Mitigation (MPM) DAM Results 67.5 minutes 75 minutes Hour Ahead Scheduling Process (HASP) 67.5 minutes Real-Time Unit Commitment (RTUC) 45 m Fifteen Minute Market (FMM) Electricity Markets & Decision-Making Architectures: A Match Made in Heaven Runs Every 5 Minutes Runs Once Each Hour Runs Every 5 Seconds Short-Term Unit Commitment (STUC) Short-Term Real-Time Unit Dispatch Commitment (RTD) (STUC) Automatic Generation Control Alex W. Dowling and Victor M. Zavala Scalable Systems Laboratory Department of Chemical & Biological Engineering University of Wisconsin-Madison January, 207

2 Renewable Portfolio Standards 30% by % by % by % by % by % by GW by 2025

3 Energy Technology Landscape Key: Technologies O ering Dynamic Flexibility Becoming More Valuable

4 Stranded Wind Power Some Facts: You Can be Proud that Texas Produces More Wind Power Than All but Five Countries. Rick Perry MidconWnent ISO Reported 7 TWh of Stranded Power in 204 (Powers,000,000 Homes) Wind Power Introduces Frequencies Not Seen Before Thermal Generators and Loads Need to Match Intermi`ency of Solar/Wind Supply

5 Locational Marginal Prices Some Info: U.S. States Pushing for 30-50% of Renewable Poreolio Standard by 2050 However, Network Has Severe Bo`lenecks, GeneraWng Large Amounts of Stranded Power MidconWnent ISO Reported 7 TWh of Stranded Power in 204 (Enough to Power,000,000 Homes)

6 Wind Power Frequency Spectrum Region A Secondary Controls (AGC) Region B Primary Controls (Speed Governors) Region C Generator Iner<as Minute-to-minute variawons

7 Net Load under Photovoltaic Power

8 ISO Automation Hierarchy DAM Results Bids for Energy and Ancillary Services prior to start of each trading hour 75 minutes Runs Once Each Hour Market Power Mitigation (MPM) 67.5 minutes Hour Ahead Scheduling Process (HASP) 45 minutes. Block intertie schedules for energy and ancillary services 2. Advisory energy and ancillary service prices/schedules from remaining bids (5 minute intervals) Runs Every 5 Minutes Real-Time Unit Commitment (RTUC) Fifteen Minute Market (FMM) Unit Commitment for Fast/Short Start Resources Energy and Ancillary Service Schedules and Prices (LMPs, ASMPs) (5 minute intervals) Runs Once Each Hour Short-Term Unit Commitment (STUC) Unit Commitment for Short/Medium Start Resources Runs Every 5 Minutes Real-Time Dispatch (RTD) Energy Prices (LMPs) and Dispatch (next 5 minutes) Runs Every 5 Seconds Automatic Generation Control Regulation Signal

9 Electricity Market Products day hr 5 min 5 min 5 sec 2 sec Ancillary Services (contingency products) Non-Spinning Reserves Additional contingency capacity Spinning Reserves Fast contingency capacity; supports regulation and RTD (Power) Regulation Frequency control by adjusting generators /loads power set-points Electrical Energy (consumption and generation) Day-Ahead Market (DAM) Schedule generators and loads in -hour intervals for the next day Fifteen Minute Market (FMM) Correct day-ahead schedule due to forecasting errors Real-Time Dispatch (RTD) Recenter regulation resources; settle ramping energy slow Required Dynamic Flexibility $ Cost / Economic Opportunities time fast $$$

10 Frequency Regulation (So Much for Free Markets) - Participants offer a flexibility band - ISO controls set-point signal around band every 5 seconds Instructed AGC Setpoint Resource Response Actual/Corrected Mileage Power Output [MW] Nominal Generation Setpoint Regulation Up Capacity Regulation Down Capacity Time 0

11 Product Prices at California ISO (Single Node) Energy (all layers) Ancillary Services (DAM) Ancillary Services (RTM)

12 Multi-Scale Market Participation Model Level 3 Level 2... N Level... N3 N2... N Level 0... N3... N N N N2... N... Day i0 Time T` := {,..., N` } for ` 2 M := {M,.., 2,, 0} ISO Markets Utility Scale Batteries Energy DA,RT Ancillary DA,RT Aluminum Smelters Oil Refineries Commercial/Academic Campuses (District Heating, HVAC) Key Features: - What Products and at What Times? - Constrained by Physics and On-site Demands Solar Power - Plants Lots of Price Data: 00,000 Points (-yr at 5 min) - Large-Scale Optimization:,000,000 Variables Air Separation Systems

13 Multi-Scale Market Participation Model t ` (t) Net Energy 0 E t ` (t), E t ` (t), 2 X Et = E t ` (t) E t ` (t) + E t ` (t), t 2 T. T`, A := {s, n, r+, r }, Markets `2M Ancillary Services 0 st ` (t), nt ` (t), 0 rt+ (t) max +, ` 0 rt (t) max, ` ` 2 M, t 2 T ` Oil Refineries Air Separation Syst ` X X X AS a,t (t) at (t) ` `. Et elec Nameplate Capacity: e E t Ramping Limits tm E t Solar Power Plants Aluminum Smelters ` 2 M, t 2 T. a2a t2t `2M elec ` rt (t) ` 2 M, t 2 T t2t `2M RAS = E t ` (t) st ` (t) Utility Scale Batteries Commercial/ nt ` (t) E t ` (t) rt+ (t) Energy and Ancillary Service Revenues X X energy e RE = t` t (t) E t ` (t) ( + ) E t ` (t), e `2M tm, Other System-Specific Constraints t 2 T. Onsite Demand(s)

14 District Energy Community Scale Heating and Cooling CHP System Study Underground network of CHP pipes combines heating and cooling requirements of multiple buildings Customer diversity aids System economics; efficiency Creates a market for valuable thermal energy Aggregated thermal loads creates scale to apply technologies not feasible on singlebuilding basis Fuel flexibility = energy security AIR NATURAL GAS HOT EXHAUST HEAT-RECOVERY STEAM GENERATORS EXHAUST STACKS HOT EXHAUST GENERATORS Electricity + Steam Loads GAS TURBINES HIGH PRESSURE STEAM LOW PRESSURE STEAM CONDENSED STEAM EXHAUST SYSTEM HOT WATER COLD WATER CONDENSER COOLING TOWER STEAM TURBINE GENERATOR COOLING TOWER HOT WATER WALNUT SUBSTATION Distribution Network COLD WATER CHILLER MADISON AREA WCCF s impressive capacity is such that it can generate 50 MW of power and 500,000 lbs/hr of steam. When it is in cogeneration mode, the facility has an overall net efficiency rate of up to 70 percent, compared to 30 to 35 percent for a conventional power plant. Key technical data Number and type of units 2 x GE LM6000 aeroderivative gas turbines, x GE steam turbine, 2 x Deltak HRSGs, and 4 x York centrifugal chillers Generating capacity 50 MW Efficiency rating Up to 70 percent Commissioning 2005 Customer advantages: Overall net efficiency rate of 70 percent, double that of conventional plants Reduces greenhouse gas, mercury and sulfur dioxide emissions Want to learn more about cogeneration technology? Converts waste heat into 500,000 lbs/hr of steam and 20,000 tons of chilled water Provides 50 MW power to local grid Download any QR Code reader app with your smartphone. Scan the code on the left with your phone to learn more. Key: Electrical and Thermal Loads (e.g., Steam) are Out of Phase For more information on GE Power & Water's Distributed Power solutions: GE Power & Water's Distributed Power business is a business unit of the General Electric Company. The GE brand, logo, and lumination are trademarks of the General Electric Company. 204 General Electric Company. Information provided is subject to change without notice. All values are design or typical values when measured under laboratory conditions. University photos provided with permission and credited to Jeff Miller/University of Wisconsin-Madison; gas turbine photo provided by GE.

15 CHP System ( MW Capacity) Note: Total On-Site Loads Satisfied (Just Shifted) DAM + RTM DAM RTM Energy 25.8 k$/yr 8.7 k$/yr 23.5 k$/yr 00% 34 % 9% Energy + Reg k$/yr 20.2 k$/yr 50.6 k$/yr 00% 35 % 87% All Products 58.8 k$/yr 20.7 k$/yr 50.4 k$/yr 00% 35% 86% Key: Most Incentives at Fast Timescales (<5 min). Ancillary Services Lucrative.

16 Storage System ( MW Capacity) Virtual Bidding DAM + RTM DAM only RTM only Energy only 39. k$/year 0.5 k$/year 5.0 k$/year 00% 8% 83% Energy & Regulation 99.6 k$/year 72.8 k$/year 4.8 k$/year 00% 36 % 7% All Products 99.6 k$/year 72.8 k$/year 4.8 k$/year 00% 36% 7% Virtual Bidding 67. k$/year

17 Concentrated Solar Power 00% increase Operating Policy

18 Challenges and Opportunities Electrical Loads Thermal Loads Storage CHP Storage Chemical Plant Questions: What Sources of Flexibility Do We Have in Manufacturing? How To Coordinate Assets (Plants/CHP/Storage)? How to Design to Maximize Flexibility? (e.g., Hybrids, Modular, Storage) Some Facts: Alcoa provides 70 MW of regulation capacity to MISO(5% of its Load) Pumping system of an oil pipeline requires 200 MW of electrical power Large refineries in Texas have power facilities of up to 500 MW

19 Challenges and Opportunities Days Scheduling Hours Minutes Real-Time Optimization MPC DAM + RTM DAM RTM Energy 25.8 k$/yr 8.7 k$/yr 23.5 k$/yr 00% 34 % 9% Energy + Reg k$/yr 20.2 k$/yr 50.6 k$/yr 00% 35 % 87% All Products 58.8 k$/yr 20.7 k$/yr 50.4 k$/yr 00% 35% 86% Seconds Regulatory Control Key Challenges: Day-Head =) Scheduling + RTO Real-Time =) RTO + MPC (Economic MPC) All =) Scheduling+RTO+MPC+Regulatory (Multi-Scale MPC) Risk and Uncertainty Management

20 Further Reading Dowling, A.W., Zavala, V.M. Re-designing Decision-Making Architectures to Exploit MulW-Scale Electricity Markets. In Proceedings of FOCAPO, 207. Dowling, A.W., Kumar, R., and Zavala, V.M., A MulW-scale OpWmizaWon Framework For Electricity Market ParWcipaWon. Applied Energy 90 (207), pp Kim, K., Yang, F., Zavala, V.M., and Chien, A.A., Data Centers as Dispatchable Loads to Harness Stranded Power. IEEE Transac<ons on Sustainable Energy 8 (207), pp Dowling, A. W., Dyreson, A., Miller, F., Zavala, V.M. Economic Assessment and OpWmal OperaWon of CSP Systems with Cold Storage in California Energy Markets. In Proceedings of SolarPACES, 206. Zavala, V.M. New Architectures for Hierarchical PredicWve Control. In Proceedings of IFAC Symposium on Dynamics and Control of Process Systems, 206.