Download - 3.5_Microgrid Market Operations with Distribution System Operators_Shahidehpour_EPRI/SNL Microgrid
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Microgrid Market Operations with Distribution System Operators
Mohammad Shahidehpour, IEEE FellowGalvin Center for Electricity Innovation
Illinois Institute of Technology
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n SmartGrid
n Advancedmonitoringandsensingdevices,sophisticatedmeters,andreal-timecommunicationandcontrolinfrastructures.
n Selfgeneration,Controllableloads,Communitystorage
n Microgridswithdistributedgenerationandstoragedevices
n Aggregationofsmallcustomerswithshiftable/curtailableloads
n Largecustomerswithon-sitegenerationandstoragesystemsandcurtailableandshiftable/deferrableloads
Changing Energy LandscapeGoal:EnhancethePowerSystemReliability,Resilience,Economics,Security,andSustainability
n Energy:n LoadShiftingn PeakShavingn Load
Reduction
n DeferredGenerationInvestment
n DeferredT&DInvestment
n ReducedO&MCosts
n DistributionReliability:n LowerSAIFIn LowerCAIDI
n PowerQualityn SystemReliability
n Capacityn AncillaryServicesn LoadFollowingn BalancingEnergy
Economic Social
Benefits of Microgrids/ Active Distribution Systems
Reliability Environmental
§ GreenHouseGasReduction§ HigherRenewablePortfolio
StandardCompliance§ RenewableEnergyCredits
§ EnhancedEnergyIndependence
§ EnhancedEconomicDevelopment
§ ImprovedCustomerSatisfaction
§ ImprovedCustomerChoice
Presumer Values
n Seams between Wholesale and Retail Marketsn Operational
n Scheduling Practices and Protocols n Retail and Wholesale Coordinationn Impact of Voltage Level on Load Aggregation/Demand Responsen Distribution Congestion Management
n Pricing Mechanismn Optimal Scheduling Practicesn Bus LMPs versus Distribution LMPsn Rate-Setting Process/Retail Tariffsn Distribution Charges
Microgrid Market Challenges
Bulk Power Products
• Day-Ahead Energy• Real-Time Energy• Balancing Energy• Non Spinning Reserves• Spinning Reserves• Regulation
Capability Data/Telemetry
DispatchInstructions
DSO Data
• Generation/Load Data• Time of Use• Critical Peak Price• Dynamic Pricing• Commercial/Industrial Curtailment
Contracts• Direct Load Control Options• Etc
Bulk Power Limits
• Pmax , Pmin• Ramp Rate• Min/Max Up & Down Time• Incremental Cost Curve
DSO :Closing the Gap with ISO (Retail and Wholesale Operations)
BulkPowerMarkets
DSODispatch&Operations
Microgrid
Substation
TransmissionOperator
LargeGenerators
Substation
PCC
MicrogridSubstation
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DSO’s Decision Making Model
ISO’s Operation Model
DSO Model
Microgrids/Load Aggregators with DR Flexibility
n GenerationCapacityCostSavingsn AnnualSavings perMWofDR:$40K- $120Kn NPV:$300K- $900KperMWofDR
Note:NPVCost ofaCT~$600KperMW
n EnergyCost Savingsn AfewthousanddollarsperMWofDRperyearn NPV Range:$50K - $200K perMWofDR
n T&D CostSavingsn Samplequotes (differentamongRegions)
n HighAnnual SavingsNPV:$1.5MperMWofDRn LowAnnual SavingsNPV:$200KperMWofDR
n Savings/Revenues fromAncillaryServicesn AfewthousanddollarsperMWofDRperyearn NPVRange:$50K- $200KperMWofDR
n TotalCostSavings perMWofDRn NPV:$600K- $2.8MperMWofDR
$-
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
Generation T&D EnergyCost AncillaryServices
$K
DR Benefits Offered by DSO
$0.00
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00
$80.00
$90.00
$100.00
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LMP($/M
Wh)
HouroftheDay
AverageSummerDayRTLMP(Anaheim;June-September)
AverageofHoursEnding 1through8:$20.50AverageofHoursEnding14through21:$47.71
Potential Impact of Summer DR : • Fixed DR Schedule: $26,000/MW DR• Optimal DR Schedule: $49,000/MW DR
Load Shifting Benefits