day1 panel1a melton - ieee · 2014-03-06 · an incentive signal predict and share a dynamic,...

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Integra(on of Distributed Energy Resources Using Transac(ve Control Ron Melton, Project Director Don Hammerstrom, Principal Inves(gator BaCelle, Pacific Northwest Division Pacific Northwest Smart Grid Demonstra(on IEEE Innova(ve Smart Grid Technologies Conference February 19 – 22, 2014, Washington, DC 1 PNWDSA10280

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Page 1: Day1 Panel1A Melton - IEEE · 2014-03-06 · An incentive signal Predict and share a dynamic, price-like signal—the unit cost of energy needed to supply demand at this node using

Integra(on  of  Distributed  Energy  Resources  Using  Transac(ve  Control!

Ron  Melton,  Project  Director  Don  Hammerstrom,  Principal  Inves(gator  

BaCelle,  Pacific  Northwest  Division  Pacific  Northwest  Smart  Grid  Demonstra(on  

IEEE  Innova(ve  Smart  Grid  Technologies  Conference  February  19  –  22,  2014,  Washington,  DC!

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PNWD-­‐SA-­‐10280  

Page 2: Day1 Panel1A Melton - IEEE · 2014-03-06 · An incentive signal Predict and share a dynamic, price-like signal—the unit cost of energy needed to supply demand at this node using

American  Recovery  and  Reinvestment  Act  of  2009    •  Smart  Grid  Demonstra8on  Program  

For  further  informa8on  go  to  www.smargrid.gov.      

The  informa8on  in  this  presenta8on  is  based  on  the  results  of  a  DOE  funded  project  under:  

Page 3: Day1 Panel1A Melton - IEEE · 2014-03-06 · An incentive signal Predict and share a dynamic, price-like signal—the unit cost of energy needed to supply demand at this node using

The  electric  power  system  is  becoming  more  distributed  

Transac(ons  on  the  rise  for  megawaCs  and  negawaCs  -­‐  DR  

Growth  of  renewable  genera(on  -­‐  DER  

Increasing  penetra(on  of  microgrids  –  DER  2.0  Growth  of  sensor  

communica(on  and  control  technologies  –  Machine-­‐to-­‐Machine  and  Internet  of  Things  

Page 4: Day1 Panel1A Melton - IEEE · 2014-03-06 · An incentive signal Predict and share a dynamic, price-like signal—the unit cost of energy needed to supply demand at this node using

The  fundamental  purpose  of  transac2ve  control  is  to  Coordinate new distributed smart grid assets (demand response, distributed generation & storage), largely customer-owned, to reduce grid costs.

 It  will  accomplish  this  by  encouraging  them  to  offer  their  flexibility  to:  Reduce need for costly balancing services required to keep today’s grid stable Mitigate the cost impacts of renewables on grid operations

• at the bulk system level – ramping and balancing services • at distribution system level – voltage fluctuations

Reduce peak loads to maximize asset utilization and minimize  need for new capacity Reduce wholesale energy production/purchase costs from power plants.  It  does  this  by:  Seamlessly coordinating the combined effect of millions of such small assets with grid operations Respecting customer boundaries while offering an equitable share of the benefits as incentive for their flexibility Providing the smooth, stable, predictable response required by grid operators.

Transactive Control – optimizes grid performance based on generation mix, price, & reliability!

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Page 5: Day1 Panel1A Melton - IEEE · 2014-03-06 · An incentive signal Predict and share a dynamic, price-like signal—the unit cost of energy needed to supply demand at this node using

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Pacific Northwest Smart Grid Demonstration Project What:  •  $178M,  ARRA-­‐funded,  5-­‐year  

demonstra(on  •  60,000  metered  customers  in  5  

states  Why:  •  Develop  communica(ons  and  

control  infrastructure  using  incen(ve  signals  to  engage  responsive  assets  

•  Quan(fy  costs  and  benefits  •  Contribute  to  standards  

development  •  Facilitate  integra(on  of  wind    

and  other  renewables  Who:  Led  by  BaCelle  and  partners  including  

BPA,  11  u(li(es,    2  universi(es,  and    5  vendors  

Page 6: Day1 Panel1A Melton - IEEE · 2014-03-06 · An incentive signal Predict and share a dynamic, price-like signal—the unit cost of energy needed to supply demand at this node using

Project basics!17  

Operational objectives n Manage peak demand n Facilitate renewable  resources n Address constrained  resources n Improve system  reliability and  efficiency n Select economical  resources (optimize  the system)

Aggregation of Power and Signals Occurs Through a Hierarchy of Interfaces

Page 7: Day1 Panel1A Melton - IEEE · 2014-03-06 · An incentive signal Predict and share a dynamic, price-like signal—the unit cost of energy needed to supply demand at this node using

An incentive signal Predict and share a dynamic, price-like signal—the unit cost of energy needed to supply demand at this node using the least costly local generation resources and imported energy. May include

•  Fuel cost (consider wind vs. fossil vs. hydropower generation)

•  Amortized infrastructure cost •  Cost impacts of capacity constraints •  Existing costs from rates, markets, demand charges,

etc. •  Green preferences? •  Profit? •  Etc.

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Example  “Resource  Func(ons”:  Wind  farm,  fossil  genera(on,  hydropower,  demand  charges,  transmission  constraint,  infrastructure,  transac(ve  energy,  imported  energy  

Page 8: Day1 Panel1A Melton - IEEE · 2014-03-06 · An incentive signal Predict and share a dynamic, price-like signal—the unit cost of energy needed to supply demand at this node using

A feedback signal Predict and send dynamic feedback signal—power predicted between this node and a neighbor node based on local price-like signal and other local conditions. May include:

Example  “Load  Func(ons”:  BaCery  storage,  bulk  inelas(c  load,  building  thermostats,  water  heaters,  dynamic  voltage  control,  portals  /  in-­‐home  displays  

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•  Inelas(c  and  elas(c  load  components  •  Weather  impacts  (e.g.,  ambient  

temperature,  wind,  insola(on)  •  Occupancy  impacts  •  Energy  storage  control  •  Local  prac(ces,  policies,  and  preferences  •  Effects  of  demand  response  ac(ons  •  Customer  preferences  •  Predicted  behavioral  responses  (e.g.,  to  

portals  or  in-­‐home  displays)  •  Real-­‐(me,  (me-­‐of-­‐use,  or  event-­‐driven  

demand  responses  alike  •  Distributed  genera(on  

Page 9: Day1 Panel1A Melton - IEEE · 2014-03-06 · An incentive signal Predict and share a dynamic, price-like signal—the unit cost of energy needed to supply demand at this node using

Nodal Structure!Consider the DER node in red:!!•  From its neighbors it is informed

about future costs and future needs!•  It knows its own state and costs!•  It updates its plans based on the

information from neighbors!•  It shares its updated plans with

neighbors!•  They update as needed!•  The process iterates – a form of

“market closing” – to convergence!•  The DER node is participating in a

distributed market making locally optimal decisions about its actions!

TIS  &  TFS  exchanged  Between  neighbors  

Page 10: Day1 Panel1A Melton - IEEE · 2014-03-06 · An incentive signal Predict and share a dynamic, price-like signal—the unit cost of energy needed to supply demand at this node using

Functional Elements of a Node!

Toolkit  Func(ons,  e.g.,  baCery  storage  

Local  Interfaces  

External  Interfaces  

Asset  System,  e.g.  BaCery  

U(lity  systems  

Neighboring  Nodes  

Transac(ve  Feedback  Signal  

Transac(ve  Incen(ve  Signal  

Page 11: Day1 Panel1A Melton - IEEE · 2014-03-06 · An incentive signal Predict and share a dynamic, price-like signal—the unit cost of energy needed to supply demand at this node using

DER Integration example – Battery Storage!•  Considered as a load – but charge and discharge cycles

are included. Discharge treated as “nega-watts”!•  Function provides charge and discharge rate targets

based on:!•  System’s power capacity!•  State-of-charge!•  Transactive control signals (historical and predicted)!•  Preferences set by asset owner that determine

responsiveness (elasticity)!•  All load or supply is considered to be elastic!•  Battery system inefficiencies (e.g., losses and auxiliary

loads) are ignored!

Page 12: Day1 Panel1A Melton - IEEE · 2014-03-06 · An incentive signal Predict and share a dynamic, price-like signal—the unit cost of energy needed to supply demand at this node using

Battery Storage Toolkit Function – Inputs and Outputs!Inputs:!• TIS - Transactive Incentive Signal (a time series with predicted incentives)!• SOC1[kWh] – Current state of charge (just prior to the time of the first predicted incentive signal value)!• SOCmax[kWh] – Maximum state of charge allowed for the battery!• SOCmin[kWh] – Minimum state of charge allowed for the battery!• Pc[kW] – nameplate value for battery system rate of charge!• Pd[kW] – nameplate value for battery system discharge rate!• SM[dimensionless] – a parameterized “penalty” factor applied to abrupt changes in battery’s state-of-charge!

Outputs:!• ΔL (Load)[kW] – a time series with predicted change in “load” for each future prediction interval!• ACS [dimensionless] advisory control signal to the battery system!

Page 13: Day1 Panel1A Melton - IEEE · 2014-03-06 · An incentive signal Predict and share a dynamic, price-like signal—the unit cost of energy needed to supply demand at this node using

Battery Storage Toolkit Function – Basic Logic!Predict the power consumed or supplied during each future prediction time interval (i.e., elastic load prediction) and determine charge / discharge actions to achieve maximum benefit from the predicted incentive values!

1.  Form a state vector X representing SOC for the current and future time intervals!2.  Calculate ΔX which will be equivalent to ΔL!3.  The system is assumed to be governed by a linear state equation representing the

physics of the system: Δx = A�x + b!!

!A and b incorporate the physical constraints such as charge and discharge rates.!!4.  Define an augmented cost function that applies the incentive costs and maximize

this function – in other words, seek to achieve the maximum benefit from the value of the predicted future incentives. If the incentive is lower than usual one should charge, if higher than usual one should discharge!

Generate the control signal to the battery system based on the results of the above calculations!

Page 14: Day1 Panel1A Melton - IEEE · 2014-03-06 · An incentive signal Predict and share a dynamic, price-like signal—the unit cost of energy needed to supply demand at this node using

Battery Storage – TIS and ACS!

-150!

-100!

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Lower Valley TIS, ACS values! IST - $/kWh!ACS! ACS!IST0!

Monday, January 13, 2014!

Page 15: Day1 Panel1A Melton - IEEE · 2014-03-06 · An incentive signal Predict and share a dynamic, price-like signal—the unit cost of energy needed to supply demand at this node using

Battery Storage – data examples!

Page 16: Day1 Panel1A Melton - IEEE · 2014-03-06 · An incentive signal Predict and share a dynamic, price-like signal—the unit cost of energy needed to supply demand at this node using
Page 17: Day1 Panel1A Melton - IEEE · 2014-03-06 · An incentive signal Predict and share a dynamic, price-like signal—the unit cost of energy needed to supply demand at this node using

Conclusions!•  Diversity of resources in the electric power system is

increasing with new approaches needed to integrate distributed energy resources!

•  Transactive control is one such approach offering the advantages of:!

•  Coordination with the broader power system through exchange of transactive control signals with neighboring system elements!

•  Maintenance of control of by the owner of the distributed asset!

•  Alignment of values for the system operator(s) and the asset owners!

Page 18: Day1 Panel1A Melton - IEEE · 2014-03-06 · An incentive signal Predict and share a dynamic, price-like signal—the unit cost of energy needed to supply demand at this node using

Acknowledgement  &  Disclaimer  46  

Acknowledgment:    "This  material  is  based  upon  work  supported  by  the  Department  of  Energy  under  Award  Number  DE-­‐OE0000190.”  Disclaimer:    "This  report  was  prepared  as  an  account  of  work  sponsored  by  an  agency  of  the  United  States  Government.    Neither  the  United  States  Government  nor  any  agency  thereof,  nor  any  of  their  employees,  makes  any  warranty,  express  or  implied,  or  assumes  any  legal  liability  or  responsibility  for  the  accuracy,  completeness,  or  usefulness  of  any  informa(on,  apparatus,  product,  or  process  disclosed,  or  represents  that  its  use  would  not  infringe  privately  owned  rights.    Reference  herein  to  any  specific  commercial  product,  process,  or  service  by  trade  name,  trademark,  manufacturer,  or  otherwise  does  not  necessarily  cons(tute  or  imply  its  endorsement,  recommenda(on,  or  favoring  by  the  United  States  Government  or  any  agency  thereof.    The  views  and  opinions  of  authors  expressed  herein  do  not  necessarily  state  or  reflect  those  of  the  United  States  Government  or  any  agency  thereof.”  

Page 19: Day1 Panel1A Melton - IEEE · 2014-03-06 · An incentive signal Predict and share a dynamic, price-like signal—the unit cost of energy needed to supply demand at this node using

For further information!Dr. Ron [email protected]!509-372-6777!!www.pnwsmartgrid.org !!• “Annual Report”!• Quarterly newsletters!• Participant summaries!• Background on technology!!

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