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Stochastic Optimization Algorithms for Smart Grid
M.Tech. Defense
Amrit Singh Bedi
Supervisor: Dr. Ketan Rajawat
SPiN Lab, EE Dept., IIT Kanpur
Sep. 5, 2017
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Outline
1 Introduction and Motivation
2 Part I: Online Load SchedulingDemand Side Management (DSM)Related Work and ContributionSystem Model and Problem FormulationStochastic Dual Descent Based SolutionConvergence ResultsProof OutlineSimulation Results
3 Part II : Online Energy OptimizationRelated Work and ContributionsSystem model and DefinitionsProblem Formulation and solutionWith forcasted PricesSimulation Results
4 Conclusion and Future work
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Introduction and Motivation
Outline
1 Introduction and Motivation
2 Part I: Online Load SchedulingDemand Side Management (DSM)Related Work and ContributionSystem Model and Problem FormulationStochastic Dual Descent Based SolutionConvergence ResultsProof OutlineSimulation Results
3 Part II : Online Energy OptimizationRelated Work and ContributionsSystem model and DefinitionsProblem Formulation and solutionWith forcasted PricesSimulation Results
4 Conclusion and Future work
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Introduction and Motivation
Why Smart Grid ??
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Introduction and Motivation
Introduction and Motivation
I The conventional power grid suffers from reliability and stability issuesresulting from an unpredictable events occurring throughout the grid1,2
Table 1: A vision for Smart Grid1
Existing Grid Smart Grid
One-way flow Two-way flowCentralized generation Distributed generationFew sensors Sensors throughoutManual monitoring Self monitoringFailure and blackouts AdaptiveNo customer involvement Customer involvement
1Xi Fang et al. “Smart grid - The new and improved power grid: A survey”. In: IEEE Commun. Surveys Tuts. 14.4 (2012), pp. 944–980.
2Ye Yan et al. “A survey on smart grid communication infrastructures: Motivations, requirements and challenges”. In: IEEE Commun.Surveys Tuts. 15.1 (2013).
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Introduction and Motivation
Introduction and Motivation
There is a popular comparison that underscores the pace of change - or lackthereof - regarding conventional grid
The story goes like this:
“If Alexander Graham Bell were somehow transported to the 21st century,he would not begin to recognize the components of modern telephony cellphones, texting, cell towers, PDAs, etc. while Thomas Edison, one of thegrids key early architects, would be totally familiar with the grid.”
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Introduction and Motivation
Introduction and Motivation
There is a popular comparison that underscores the pace of change - or lackthereof - regarding conventional grid
The story goes like this:
“If Alexander Graham Bell were somehow transported to the 21st century,he would not begin to recognize the components of modern telephony cellphones, texting, cell towers, PDAs, etc. while Thomas Edison, one of thegrids key early architects, would be totally familiar with the grid.”
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Introduction and Motivation
Introduction and Motivation
There is a popular comparison that underscores the pace of change - or lackthereof - regarding conventional grid
The story goes like this:
“If Alexander Graham Bell were somehow transported to the 21st century,he would not begin to recognize the components of modern telephony cellphones, texting, cell towers, PDAs, etc. while Thomas Edison, one of thegrids key early architects, would be totally familiar with the grid.”
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Introduction and Motivation
What is Smart Grid ??
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Introduction and Motivation
What is Smart Grid?
Figure 1: Two way information flow
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Introduction and Motivation
Smart Grid
I Smart grid is an electrical grid equipped with automation, advancedmetering, and communication systems to control generation,distribution and consumption of electrical energy3
I Smart Grid seeks to employ state-of-the-art tools from communications,information technology, and signal processing
3“Smart grid vision and roadmap for India”. In: (2013).
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Introduction and Motivation
Smart Grid
I Smart grid is an electrical grid equipped with automation, advancedmetering, and communication systems to control generation,distribution and consumption of electrical energy3
I Smart Grid seeks to employ state-of-the-art tools from communications,information technology, and signal processing
3“Smart grid vision and roadmap for India”. In: (2013).
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Introduction and Motivation
Smart Grid
I Smart grid is an electrical grid equipped with automation, advancedmetering, and communication systems to control generation,distribution and consumption of electrical energy3
I Smart Grid seeks to employ state-of-the-art tools from communications,information technology, and signal processing
3“Smart grid vision and roadmap for India”. In: (2013).
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Introduction and Motivation
Smart Grid
I Smart grid is an electrical grid equipped with automation, advancedmetering, and communication systems to control generation,distribution and consumption of electrical energy3
I Smart Grid seeks to employ state-of-the-art tools from communications,information technology, and signal processing
3“Smart grid vision and roadmap for India”. In: (2013).
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Introduction and Motivation
Different Challenges
From Signal Processing Perspective:
I Two-way flow of energy and information throughout the system
I Plug-in hybrid electric vehicles integration
I Observing the Power Grid
I State Estimation in Electric Power Grids
I Demand-Side Management (Demand Response) with Dynamic Pricing
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Introduction and Motivation
Different Challenges
From Signal Processing Perspective:
I Two-way flow of energy and information throughout the system
I Plug-in hybrid electric vehicles integration
I Observing the Power Grid
I State Estimation in Electric Power Grids
I Demand-Side Management (Demand Response) with Dynamic Pricing
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Introduction and Motivation
Part I :Online Load Scheduling Under Price &Demand Uncertainty in Smart Grid4
4Amrit S Bedi and Ketan Rajawat. “Online load scheduling under price and demand uncertainty in smart grid”. In: Signal Processing andCommunications (SPCOM), 2016 International Conference on. IEEE. 2016, pp. 1–5.
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Part I: Online Load Scheduling
Outline
1 Introduction and Motivation
2 Part I: Online Load SchedulingDemand Side Management (DSM)Related Work and ContributionSystem Model and Problem FormulationStochastic Dual Descent Based SolutionConvergence ResultsProof OutlineSimulation Results
3 Part II : Online Energy OptimizationRelated Work and ContributionsSystem model and DefinitionsProblem Formulation and solutionWith forcasted PricesSimulation Results
4 Conclusion and Future work
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Part I: Online Load Scheduling Demand Side Management (DSM)
DSM
I What is DSM?I Demand side management5 is adjustment of the demand for electricity
at user side during peak periods and reducing their overall energyconsumption cost
I It comprises of two main principle activitiesI Demand responseI Energy storage management
I Advantages
• Cutting costs for service providers, Saving money for households• Helping utilities to operate more efficiently and in return reducing
emission of greenhouse gases
5Brandon Davito, Humayun Tai, and Robert Uhlaner. “The smart grid and the promise of demand-side management”. In: McKinsey onSmart Grid 3 (2010), pp. 8–44.
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Part I: Online Load Scheduling Demand Side Management (DSM)
DSM
I What is DSM?I Demand side management5 is adjustment of the demand for electricity
at user side during peak periods and reducing their overall energyconsumption cost
I It comprises of two main principle activitiesI Demand responseI Energy storage management
I Advantages
• Cutting costs for service providers, Saving money for households• Helping utilities to operate more efficiently and in return reducing
emission of greenhouse gases
5Brandon Davito, Humayun Tai, and Robert Uhlaner. “The smart grid and the promise of demand-side management”. In: McKinsey onSmart Grid 3 (2010), pp. 8–44.
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Part I: Online Load Scheduling Demand Side Management (DSM)
Motivation
Figure 2: Sector wise electricity consumption in India6
6“Residential Electricity Consumption in India”. In: Ministry of Statistic and Programme Implementation Dec. (2015).
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Part I: Online Load Scheduling Demand Side Management (DSM)
Motivation
Figure 3: Residential load profile in Gujrat7
7“Residential Electricity Consumption in India”. In: Ministry of Statistic and Programme Implementation Dec. (2015).
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Part I: Online Load Scheduling Demand Side Management (DSM)
Demand Response
Figure 4: Demand Response8
8John S Vardakas, Nizar Zorba, and Christos V Verikoukis. “A survey on demand response programs in smart grids: Pricing methods andoptimization algorithms”. In: IEEE Communications Surveys & Tutorials 17.1 (2015), pp. 152–178.
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Part I: Online Load Scheduling Demand Side Management (DSM)
Demand Response
Figure 5: Main participants in DR program9
9John S Vardakas, Nizar Zorba, and Christos V Verikoukis. “A survey on demand response programs in smart grids: Pricing methods andoptimization algorithms”. In: IEEE Communications Surveys & Tutorials 17.1 (2015), pp. 152–178.
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Part I: Online Load Scheduling Demand Side Management (DSM)
Demand Response
Figure 6: Example of scheduling in DR program10
10John S Vardakas, Nizar Zorba, and Christos V Verikoukis. “A survey on demand response programs in smart grids: Pricing methods andoptimization algorithms”. In: IEEE Communications Surveys & Tutorials 17.1 (2015), pp. 152–178.
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Part I: Online Load Scheduling Demand Side Management (DSM)
Dynamic Pricing11
Dynamic pricing means that electricity prices are time varying
I Time of use pricing (ToU)
I Critical peak pricing (CPP)
But in these schemes, the prices are set well in advance and do not reallyreflects the system state
I Real time pricing (RTP)
11Brandon Davito, Humayun Tai, and Robert Uhlaner. “Smart grid: An approach to dynamic pricing in India”. In: April (2014).
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Part I: Online Load Scheduling Demand Side Management (DSM)
Dynamic Pricing11
Dynamic pricing means that electricity prices are time varying
I Time of use pricing (ToU)
I Critical peak pricing (CPP)
But in these schemes, the prices are set well in advance and do not reallyreflects the system state
I Real time pricing (RTP)
11Brandon Davito, Humayun Tai, and Robert Uhlaner. “Smart grid: An approach to dynamic pricing in India”. In: April (2014).
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Part I: Online Load Scheduling Demand Side Management (DSM)
Dynamic Pricing11
Dynamic pricing means that electricity prices are time varying
I Time of use pricing (ToU)
I Critical peak pricing (CPP)
But in these schemes, the prices are set well in advance and do not reallyreflects the system state
I Real time pricing (RTP)
11Brandon Davito, Humayun Tai, and Robert Uhlaner. “Smart grid: An approach to dynamic pricing in India”. In: April (2014).
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Part I: Online Load Scheduling Related Work and Contribution
Related Work and Contribution
I Load uncertainty, day ahead pricing, and utility-side problem of powergeneration scheduling has been considered in12,13
I Price uncertainty alone has been considered via robust optimization14
I Stochastic dynamic programming framework is used in15 for schedulingbut assumes the statistical knowledge of future prices
I Load scheduling under price uncertainty (forecasted prices) isconsidered in16 (temporarily coupled constraints)
12M. Parvania and M. Fotuhi-Firuzabad. “Demand response scheduling by stochastic Security Constrained Unit Commitment SCUC”. . In:IEEE Trans. on Smart Grid 1.1 (2010), pp. 89–98.
13J. Zhang, J. D. Fuller, and S. Elhedhli. “A stochastic programming model for a day-ahead electricity market with real-time reserve shortagepricing”. In: 25.2 (2010), pp. 703–713.
14A.J. Conejo, J.M. Morales, and L. Baringo. “Real-Time Demand Response Model”. In: IEEE Trans. on Smart Grid 1.3 (2010),pp. 236–242.
15T.T. Kim and H.V. Poor. “Scheduling Power Consumption With Price Uncertainty”. In: IEEE Trans. on Smart Grid 2.3 (2011),pp. 519–527.
16R. Deng et al. “Load scheduling with price uncertainty and temporally-coupled constraints in smart grids”. In: 29.6 (2014), pp. 2823–2834.
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Part I: Online Load Scheduling Related Work and Contribution
Related Work and Contribution
I A dual-descent based algorithm was proposed in17
I Online scheduling algorithm of17 utilizes price statistics for loadscheduling, and is therefore susceptible to large variations in prices
I In contrast, the proposed algorithm18 allows the prices and loads tohave different average values for different times of the day
I The proposed algorithm is inspired from the incremental stochasticsubgradient algorithm of19
17R. Deng et al. “Load scheduling with price uncertainty and temporally-coupled constraints in smart grids”. In: 29.6 (2014), pp. 2823–2834.
18Amrit S Bedi and Ketan Rajawat. “Online load scheduling under price and demand uncertainty in smart grid”. In: Signal Processing andCommunications (SPCOM), 2016 International Conference on. IEEE. 2016, pp. 1–5.
19S. S. Ram, A. Nedic, and V. V. Veeravalli. “Incremental stochastic subgradient algorithms for convex optimization”. In: SIAM Journal onOptimization 20.2 (2009), pp. 691–717.
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Part I: Online Load Scheduling System Model and Problem Formulation
System Model Settings
Power
Grid
Utility
Company
Smart
Meter
LOAD
Controller
Battery
AC/DC AC/DC
Solar
PV
Energy Transfer Link
Control Signals
Consumer
Power Bus
Loa
d s
ch
SoC
Iref
Pri
ce
Battery
AC/DCSmart
Meter
Figure 7: System model description
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Part I: Online Load Scheduling System Model and Problem Formulation
Definitions and Goal
I Time is slotted, T = 24 slots per day
I Prices pt is assumed to be stochastic with unknown distribution
I Load demand yt` is uncertain
I Goal is to find optimal scheduling policy xt` for all appliances
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Part I: Online Load Scheduling System Model and Problem Formulation
Basic Idea
I Selective operational time slots
xt`(d) = 0 ∀ t /∈ T`, d ≥ 1 (1)
I Minimum (Xmin` ) and Maximum (Xmax
` ) energy consumption, i.e.,
Xmin` ≤ xt`(d) ≤ Xmax
` , ∀ t ∈ T`, d ≥ 1 (2)
• Examples: PHEVs and batteries etc., variable charging/discharging rate
I Appliances only with ON-OFF control, that is,
xt`(d) ∈ {0, P`} ∀ t ∈ T`, d ≥ 1 (3)
I Together, constraints in (1)-(3) can be collectively expressed as
xt`(d) ∈ X t` ∀ ` ∈ L, d ≥ 1 (4)
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Part I: Online Load Scheduling System Model and Problem Formulation
Basic Idea
I Selective operational time slots
xt`(d) = 0 ∀ t /∈ T`, d ≥ 1 (1)
I Minimum (Xmin` ) and Maximum (Xmax
` ) energy consumption, i.e.,
Xmin` ≤ xt`(d) ≤ Xmax
` , ∀ t ∈ T`, d ≥ 1 (2)
• Examples: PHEVs and batteries etc., variable charging/discharging rate
I Appliances only with ON-OFF control, that is,
xt`(d) ∈ {0, P`} ∀ t ∈ T`, d ≥ 1 (3)
I Together, constraints in (1)-(3) can be collectively expressed as
xt`(d) ∈ X t` ∀ ` ∈ L, d ≥ 1 (4)
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Part I: Online Load Scheduling System Model and Problem Formulation
Basic Idea
I Selective operational time slots
xt`(d) = 0 ∀ t /∈ T`, d ≥ 1 (1)
I Minimum (Xmin` ) and Maximum (Xmax
` ) energy consumption, i.e.,
Xmin` ≤ xt`(d) ≤ Xmax
` , ∀ t ∈ T`, d ≥ 1 (2)
• Examples: PHEVs and batteries etc., variable charging/discharging rate
I Appliances only with ON-OFF control, that is,
xt`(d) ∈ {0, P`} ∀ t ∈ T`, d ≥ 1 (3)
I Together, constraints in (1)-(3) can be collectively expressed as
xt`(d) ∈ X t` ∀ ` ∈ L, d ≥ 1 (4)
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Part I: Online Load Scheduling System Model and Problem Formulation
Basic Idea
I Selective operational time slots
xt`(d) = 0 ∀ t /∈ T`, d ≥ 1 (1)
I Minimum (Xmin` ) and Maximum (Xmax
` ) energy consumption, i.e.,
Xmin` ≤ xt`(d) ≤ Xmax
` , ∀ t ∈ T`, d ≥ 1 (2)
• Examples: PHEVs and batteries etc., variable charging/discharging rate
I Appliances only with ON-OFF control, that is,
xt`(d) ∈ {0, P`} ∀ t ∈ T`, d ≥ 1 (3)
I Together, constraints in (1)-(3) can be collectively expressed as
xt`(d) ∈ X t` ∀ ` ∈ L, d ≥ 1 (4)
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Part I: Online Load Scheduling System Model and Problem Formulation
Basic idea
I Constraint on meeting daily demand is only imposed on an average
E
[T∑t=1
xt`(d)− yt`(d)
]≥ 0 ∀` ∈ L (5)
here expectation is with respect to the random prices and demands
I User satisfaction at time slot t is∑`
ω`U`(xt`(d), yt`(d)) (6)
• weights ω` quantify the importance of the load `
I Note: Success of demand response algorithms depends almost entirelyon the demand side flexibility afforded by the users
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Part I: Online Load Scheduling System Model and Problem Formulation
Problem Formulation
Full-day schedule design problem
P = max{xt
`(·)}E
T∑t=1
∑`∈L
ω`U`(xt`(d), yt`(d))︸ ︷︷ ︸Satisfaction
− pt(d)xt`(d)︸ ︷︷ ︸Cost
(7)
s.t. E
[T∑t=1
xt`(d)− yt`(d)
]≥ 0, ∀` ∈ L (8)
xt`(d) ∈ X t` , ∀t ∈ T (9)
Why difficult to solve?
I The statistics of the random quantities in unknown
I Scheduling policies {xt`(·)}t,` makes the problem infinite dimensional
I We need a solution with less per iteration complexity
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Part I: Online Load Scheduling System Model and Problem Formulation
Problem Formulation
Full-day schedule design problem
P = max{xt
`(·)}E
T∑t=1
∑`∈L
ω`U`(xt`(d), yt`(d))︸ ︷︷ ︸Satisfaction
− pt(d)xt`(d)︸ ︷︷ ︸Cost
(7)
s.t. E
[T∑t=1
xt`(d)− yt`(d)
]≥ 0, ∀` ∈ L (8)
xt`(d) ∈ X t` , ∀t ∈ T (9)
Why difficult to solve?
I The statistics of the random quantities in unknown
I Scheduling policies {xt`(·)}t,` makes the problem infinite dimensional
I We need a solution with less per iteration complexity
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Part I: Online Load Scheduling System Model and Problem Formulation
Problem Formulation
Full-day schedule design problem
P = max{xt
`(·)}E
T∑t=1
∑`∈L
ω`U`(xt`(d), yt`(d))︸ ︷︷ ︸Satisfaction
− pt(d)xt`(d)︸ ︷︷ ︸Cost
(7)
s.t. E
[T∑t=1
xt`(d)− yt`(d)
]≥ 0, ∀` ∈ L (8)
xt`(d) ∈ X t` , ∀t ∈ T (9)
Why difficult to solve?
I The statistics of the random quantities in unknown
I Scheduling policies {xt`(·)}t,` makes the problem infinite dimensional
I We need a solution with less per iteration complexity
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Part I: Online Load Scheduling Stochastic Dual Descent Based Solution
Dual Problem
I The Lagrangian function is written as
L(x, λ) =E
[T∑t=1
∑`∈L
[ω`U`(x
t`(d), yt`(d))− pt(d)xt`(d)
]]
+∑`∈L
λ`
(E
[T∑t=1
xt`(d)− yt`(d)
])(10)
I The resulting dual problem can therefore be written as
D = minλ�0
T∑t=1
Dt(λ) (11)
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Part I: Online Load Scheduling Stochastic Dual Descent Based Solution
Classical Subgradient Algorithm
I Primal update
{x̂t`(d)}Tt=1 := arg max{xt
`∈Xt` }E
[T∑t=1
∑`∈L
ω`U`(xt`(d), yt`(d))
−(pt(d)− λ`(d))xt`(d)
]−
T∑t=1
∑`∈L
λ`(d)E[yt`(d)
](12)
I Dual update
λ`(d+ 1) =
[λ`(d) + ε
T∑t=1
x̂t`(d)− yt`(d)
]+(13)
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Part I: Online Load Scheduling Stochastic Dual Descent Based Solution
Proposed Stochastic algorithm
I Stochastic dual descent:
{x̂t`(d)}Tt=1 = arg maxxt`∈X
t`
ω`U`(xt`, y
t`(d))− (pt(d)− λ`(d))xt` (14)
λ`(d+ 1) =
[λ`(d)− ε
T∑t=1
(x̂t`(d)− yt`(d)
) ]+(15)
I Stochastic Incremental algorithm: Within this framework, the primaland dual updates become
x̂t`(d) = arg maxxt`∈X
t`
ω`U`(xt`, y
t`(d))− (pt(d)− λt−1` (d))xt` ;∀ ` ∈ L (16)
λt`(d) =
[λt−1` (d)− ε
[x̂t`(d)− yt`(d)
] ]+;∀ ` ∈ L
λ0`(d+ 1) = λT` (d) (17)
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Part I: Online Load Scheduling Stochastic Dual Descent Based Solution
Proposed Stochastic algorithm
I Stochastic dual descent:
{x̂t`(d)}Tt=1 = arg maxxt`∈X
t`
ω`U`(xt`, y
t`(d))− (pt(d)− λ`(d))xt` (14)
λ`(d+ 1) =
[λ`(d)− ε
T∑t=1
(x̂t`(d)− yt`(d)
) ]+(15)
I Stochastic Incremental algorithm: Within this framework, the primaland dual updates become
x̂t`(d) = arg maxxt`∈X
t`
ω`U`(xt`, y
t`(d))− (pt(d)− λt−1` (d))xt` ;∀ ` ∈ L (16)
λt`(d) =
[λt−1` (d)− ε
[x̂t`(d)− yt`(d)
] ]+;∀ ` ∈ L
λ0`(d+ 1) = λT` (d) (17)
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Part I: Online Load Scheduling Convergence Results
Convergence Results
Theorem 1
Assuming that |x̂t`(d)− yt`(d)| ≤ G for all t, `, d, and that set X is compact,the following results hold
(a). Average primal-near optimality
The schedules are near-optimal on an average, that is,
limD→∞
E
[1
D
D∑d=1
T∑t=1
wtd(x̂t`(d))
]≥ P− εT 2G2 (18)
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Part I: Online Load Scheduling Convergence Results
Convergence Results
Theorem 1
Assuming that |x̂t`(d)− yt`(d)| ≤ G for all t, `, d, and that set X is compact,the following results hold
(a). Average primal-near optimality
The schedules are near-optimal on an average, that is,
limD→∞
E
[1
D
D∑d=1
T∑t=1
wtd(x̂t`(d))
]≥ P− εT 2G2 (18)
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Part I: Online Load Scheduling Convergence Results
Convergence Results
Theorem 1
Assuming that |x̂t`(d)− yt`(d)| ≤ G for all t, `, d, and that set X is compact,the following results hold
(b). Asymptotic constraint violation
Given arbitrary α > 0, it holds for all ` ∈ L that
lim infD→∞
1
D
D∑d=1
T∑t=1
E[x̂t`(d)− yt`(d)
]≥ −α (19)
lim supD→∞
1
D
D∑d=1
T∑t=1
E[x̂t`(d)− yt`(d)
]≤ α (20)
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Part I: Online Load Scheduling Proof Outline
Proof Outline
The proof is done for the following general stochastic optimization problem
maxxi,pi
K∑i=1
f i(xi) (21)
s.t.K∑i=1
ui(xi) + E[vi(hi,pihi)
]� 0 (22)
xi ∈ X i, pi ∈ Pi (23)
I First we need the following sequence of distance from the optimal as
E∥∥λKT − λ?
∥∥2 ≤ E∥∥λ0
1 − λ?∥∥2 +
∑t,i
ε2E∥∥git∥∥2 − 2
∑t,i
εE[〈git,λi−1t −λ?〉
]I Developing the lower bound for
E
[K∑i=1
f i(x̄i)]≥ 1
TE
[T∑t=1
K∑i=1
f i(xit)
](24)
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Part I: Online Load Scheduling Proof Outline
Proof Outline
The proof is done for the following general stochastic optimization problem
maxxi,pi
K∑i=1
f i(xi) (21)
s.t.K∑i=1
ui(xi) + E[vi(hi,pihi)
]� 0 (22)
xi ∈ X i, pi ∈ Pi (23)
I First we need the following sequence of distance from the optimal as
E∥∥λKT − λ?
∥∥2 ≤ E∥∥λ0
1 − λ?∥∥2 +
∑t,i
ε2E∥∥git∥∥2 − 2
∑t,i
εE[〈git,λi−1t −λ?〉
]I Developing the lower bound for
E
[K∑i=1
f i(x̄i)]≥ 1
TE
[T∑t=1
K∑i=1
f i(xit)
](24)
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Part I: Online Load Scheduling Proof Outline
Proof Outline
The proof is done for the following general stochastic optimization problem
maxxi,pi
K∑i=1
f i(xi) (21)
s.t.K∑i=1
ui(xi) + E[vi(hi,pihi)
]� 0 (22)
xi ∈ X i, pi ∈ Pi (23)
I First we need the following sequence of distance from the optimal as
E∥∥λKT − λ?
∥∥2 ≤ E∥∥λ0
1 − λ?∥∥2 +
∑t,i
ε2E∥∥git∥∥2 − 2
∑t,i
εE[〈git,λi−1t −λ?〉
]I Developing the lower bound for
E
[K∑i=1
f i(x̄i)]≥ 1
TE
[T∑t=1
K∑i=1
f i(xit)
](24)
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Part I: Online Load Scheduling Simulation Results
Results
I Two appliances are considered, ` = 1 mimic the demand for load otherthan PHEV, ` = 2 is 10kWhr battery rating PHEV operating fromevening 6pm to 6am
I U t` (x`(t)) := −0.5 ∗ (xt` − yt`)2
I Actual price data from20 is used
20Comed. url: https://hourlypricing.comed.com/hp-api/.
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Part I: Online Load Scheduling Simulation Results
Results
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 240
1
2
3
4
5
6
7
8
9
Time slots (in hrs)
Dem
and(inKW
hr)
Average demand profile, ℓ = 1
Average demand profile, ℓ = 2
Figure 8: Average demand profile
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Part I: Online Load Scheduling Simulation Results
Results
1 2 3 4 5 6 7 8 9−400
−300
−200
−100
0
100
200
300
400
500
σ2
Averagecost
(positive)
AverageUtility
(negative)
Proposed utiProposed billOnline uti [13]Online bill [13]Dual descent utiDual descent bill
Figure 9: Comparison of different techniques
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Part I: Online Load Scheduling Simulation Results
Results
2 4 6 8 10 12 14 16 18 20 22 240
1
2
3
4
5
6
7
8
9
Time slots (in hours)
Dem
and (
in K
Whr)
Average demandDual descentIncremental
Figure 10: Scheduled vector x1
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Part I: Online Load Scheduling Simulation Results
Results
101
102
1030
10
20
30
40
50η90
ω210
110
210
30
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
Ave
rage
und
erch
arge
(in
%)
Average undercharge
η90
Figure 11: Performance analysis for the critical load (6 pm to 6 am)
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Part II : Online Energy Optimization
Outline
1 Introduction and Motivation
2 Part I: Online Load SchedulingDemand Side Management (DSM)Related Work and ContributionSystem Model and Problem FormulationStochastic Dual Descent Based SolutionConvergence ResultsProof OutlineSimulation Results
3 Part II : Online Energy OptimizationRelated Work and ContributionsSystem model and DefinitionsProblem Formulation and solutionWith forcasted PricesSimulation Results
4 Conclusion and Future work
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Part II : Online Energy Optimization
Part II :Optimal Utilization of Storage Systems underReal-time Pricing21
21Amrit S Bedi et al. “Optimal utilization of storage systems under real-time pricing”. In: Communications Workshops (ICC Workshops),2017 IEEE International Conference on. IEEE. 2017, pp. 1141–1146.
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Part II : Online Energy Optimization
System Model
Power
Grid
Utility
Company
Smart
Meter
LOAD
Controller
Battery
AC/DC AC/DC
Solar
PV
Energy Transfer Link
Control Signals
Consumer
Power Bus
Loa
d s
ch
SoC
Iref
Pri
ce
Battery
AC/DCSmart
Meter
Figure 12: System model with dynamic pricing
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Part II : Online Energy Optimization Related Work and Contributions
Related Work
I Storage technologies advancements, large scale batteries22,23
I From utility’s perspective, studied in24, minimize grid operational cost
I From customer’s perspective, studied in25,26, cost minimization
I Threshold based structure of optimal storage policy27,28,29
22“Clean Energy Storage and Onions”. In: GillsOnions PrudentEnergy WhitePaper (2012), Battery Energy Storage for Smart GridApplications. url: http://www.eurobat.org/sites/default/files/eurobat_smartgrid_publication_may_2013.pdf.
23Alexander E Emanuel. “Peak shaving using energy storage at the residential level”. PhD thesis. Worcester Polytechnic Institute.
24Iordanis Koutsopoulos, Vassiliki Hatzi, and Leandros Tassiulas. “Optimal energy storage control policies for the smart power grid”. In:IEEE SmartGridComm. 2011, pp. 475–480.
25Peter M van de Ven et al. “Optimal control of end-user energy storage”. In: IEEE Trans. Smart Grid 4.2 (2013), pp. 789–797.
26Alexander E Emanuel. “Peak shaving using energy storage at the residential level”. PhD thesis. Worcester Polytechnic Institute.
27Peter M van de Ven et al. “Optimal control of end-user energy storage”. In: IEEE Trans. Smart Grid 4.2 (2013), pp. 789–797.
28Iordanis Koutsopoulos, Vassiliki Hatzi, and Leandros Tassiulas. “Optimal energy storage control policies for the smart power grid”. In:IEEE SmartGridComm. 2011, pp. 475–480.
29Rahul Urgaonkar et al. “Optimal power cost management using stored energy in data centers”. In: Proc. ACM Int’l Conf. Measurementand Modeling of Computer Systems (SIGMETRICS ’11). 2011, pp. 221–232.
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Part II : Online Energy Optimization Related Work and Contributions
Related Work
I Utilize MDP approach, determining optimal threshold is not trivial
I Requires a priori knowledge of the price, demand statistics,discrete-valued price
I Lyapunov optimization based approach is adopted in30
I Computational complexity issue is not there but algorithms still need tosolve a linear programming problem at each time slot
30Longbo Huang, Jean Walrand, and Kannan Ramchandran. “Optimal demand response with energy storage management”. In: Smart GridCommunications (SmartGridComm), 2012 IEEE Third International Conference on. IEEE. 2012, pp. 61–66.
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Part II : Online Energy Optimization Related Work and Contributions
Contributions
I Different from the standard MDP-based approaches
I A novel online incremental algorithm for solving the batteryoptimization problem
I Proposed scheme is threshold-based, and works without any a prioriknowledge about the price or demand statistics
I A practical version of the algorithm is introduced that directly utilizesthe battery state-of-charge (SoC) for making the charge/dischargedecisions
I Simple to implement, works with continuous-valued prices, demands,and SoC
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Part II : Online Energy Optimization System model and Definitions
Definitions
I Time is divided into slots and is indexed by t, τ ∈ N
I At t, each customer has the knowledge ofI price pt ∈ P ⊂ R+
I battery SoC bt−1
I load Lt ≤ Pmax
I Based on this, decision of charge discharge by an amount xt is to betaken
I From battery specification, it is required to hold that
xt ∈ [−βout, βin] (25)
bt ∈ [βmin, βmax] (26)
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Part II : Online Energy Optimization Problem Formulation and solution
Optimization Problem
The battery optimization problem over a horizon of T time slots is
minxt∈X
1
T
T∑t=1
pt(Lt + xt) +x2t2α
(27)
s. t.1
T
T∑t=1
xt = 0 (28)
I Set X := [−βout, βin] provides safe limits for optimization variable{xt}Tt=1
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Part II : Online Energy Optimization Problem Formulation and solution
Solution via Incremental Dual Ascent
I The Lagrangian is given by
L({xt}, λ) =1
T
T∑t=1
[(pt − λ)xt +
x2t2α
+ptLt
](29)
I The incremental dual updates are given by:
xt =[α(λt−1 − pt)
]βin
−βout
(30)
λt = λt−1 − δxt (31)
I δ > 0 is the step-size parameterI and [x]ba := min(max(x, a), b)
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Part II : Online Energy Optimization Problem Formulation and solution
Theoretical Results
I Assumptions:
(A1) The stochastic process {pt} is bounded, i.e., pt ≤ pmax <∞ for someconstant pmax.
(A2) The time-average of {pt} exists, i.e., p̄ = limT→∞1T
∑Tt=1 pt almost
surely (a.s.), where p̄ <∞ is a constant.
I Result:
Theorem
Under (A1)-(A2) and for αδ < 1, the charge/discharge process {xt}Tt=1
obtained from (15) is a.s. asymptotically feasible.
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Part II : Online Energy Optimization Problem Formulation and solution
Theoretical Results
I Assumptions:
(A1) The stochastic process {pt} is bounded, i.e., pt ≤ pmax <∞ for someconstant pmax.
(A2) The time-average of {pt} exists, i.e., p̄ = limT→∞1T
∑Tt=1 pt almost
surely (a.s.), where p̄ <∞ is a constant.
I Result:
Theorem
Under (A1)-(A2) and for αδ < 1, the charge/discharge process {xt}Tt=1
obtained from (15) is a.s. asymptotically feasible.
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Part II : Online Energy Optimization Problem Formulation and solution
Proposed Controller Settings
I Battery dynamics evolves as
bt =
[bt−1 + xt
]βmax
βmin
(32)
I For γ = pmaxβmax
βmax−βmin, ε = pmax/(βmax − βmin), α = min(βin, βout)/pmax
we get −βout ≤ α(λt−1 − pt) ≤ βin, making limits in (30) redundant
I Finally, (32) can be written as
bt−1 + xt = (1− αδ)bt−1 + αδγ − ptε
(33)
I In summary
xt = α(γ − εbt−1 − pt) (34)
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Part II : Online Energy Optimization Problem Formulation and solution
Algorithm:
(S1) Given parameters βmax, βmin, initial SoC b0, and pmax, selectγ = pmaxβmax
βmax−βmin, ε = pmax
βmax−βmin, and α = min(βin, βout)/pmax
Repeat for t ≥ 1:
(S2) Input: price pt, battery SoC bt−1;
(S3) Calculate xt using xt = α(γ − εbt−1 − pt);
(S4) Charge/discharge battery by xt units of energy;
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Part II : Online Energy Optimization With forcasted Prices
With forcasted Prices
I Consider the following problem
minxt∈X
1
T
T∑t=1
pt(Lt + x̃t) +x̃2t2α
(35)
s. t.1
T
T∑t=1
xt = 0 (36)
optimization variable is x̃t := xt − x̂tI Using incremental dual descent, we get
xt =[α(λt−1 − pt) + x̂t
]βin
−βout
(37)
λt = λt−1 − δxt (38)
Since x̂t is known ahead of time, the limits in (37) can again beeliminated by choosing αt = min((βin, βout)− x̂t)/pmax
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Part II : Online Energy Optimization Simulation Results
Simulation parameters
I Customer has a 5 kW peak power requirement, 3 kW of energy storagecapacity, Solar PV of peak power rating 2.5 MW
I The average load profile is obtained from31
I Two price data sets considered (Fig. 2)I Averaged wholesale prices, for the duration 03/06/2015 to 29/06/201632
I Hourly residential prices33
I Real time prices by adding zero mean Gaussian noise with standarddeviation of 5
I Other associated parameters for the algorithm are pmax = 15,βmax = 3MWhr, βin = βout = 0.5βmax, βmin = 20%, and α = 0.1416
31Load profiles and their use in electricity settlement.http://www.uea.ac.uk/~e680/energy/energy_links/electricity/load_profiles.pdf.
32“Alberta Electric System Operator”. In: (). url: http://ets.aeso.ca/.
33Comed. url: https://hourlypricing.comed.com/hp-api/.
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Part II : Online Energy Optimization Simulation Results
Performance results
5 10 15 200
1
2
3E
nerg
y (i
n M
Whr
)
Solar energyAverage load
5 10 15 200
5
10
Days
Pric
e (i
n $/
MW
hr)
Average price (data set 1)Average price (data set 2)
× 103
Figure 13: Average profile for price, load, and received solar energy
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Part II : Online Energy Optimization Simulation Results
Performance results
Table 2: Performance Comparison
Avg.prices
MDP Prop.
% cost benefitper-day
5.36% 4.72% 12.03%
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Conclusion and Future work
Outline
1 Introduction and Motivation
2 Part I: Online Load SchedulingDemand Side Management (DSM)Related Work and ContributionSystem Model and Problem FormulationStochastic Dual Descent Based SolutionConvergence ResultsProof OutlineSimulation Results
3 Part II : Online Energy OptimizationRelated Work and ContributionsSystem model and DefinitionsProblem Formulation and solutionWith forcasted PricesSimulation Results
4 Conclusion and Future work
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Conclusion and Future work
Conclusion and Future work
I Online algorithm for load scheduling under price and load uncertainty
I Provided convergence guarantees
I Proposed an online algorithm for energy storage optimization
I Provided convergence guarantees
Future work:
I The proposed energy optimization algorithm can be extended fordistributed settings when each consumer is equipped with energygeneration and storage facilities.
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Conclusion and Future work
Acknowledgments
I Dr. Sandeep Anand
I Mr. Waseem Ahmed
I Mr. Aditya P Prasad
I Mr. Swapnil Shinde
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Thank You
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Comparison
5 10 15 20 25 302
4
6
8
10
12
14
16
Days
Perc
enta
ge b
enef
it (i
n co
st/d
ay)
ProportionalAverage priceMDP
Figure 14: Percentage reduction in the electricity bill with storage optimization, without solarinstallation
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Solar
5 10 15 20 25 301
1.2
1.4
1.6
1.8
2
2.2
Days
Cos
t/day
(in
$)
Conventional policy (without solar)Optimal storage policy (without solar)Conventional policy (with solar)Optimal storage policy (with solar)
× 103
Figure 15: Absolute costs incurred with and without storage optimization, both with and andwithout solar installation
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Effect of battery size
3 4 5 6 7 8 9 10
5
10
15
20
Battery size (in MWhr)
Perc
enta
ge b
enef
it
(i
n co
st/d
ay)
With solar
With solar (20% backup)
Without solar
Figure 16: Percentage benefit in cost/day with different battery sizes
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With forecasted prices
5 10 15 20 25 30−2
0
2
4
6
8
Days
Per
cent
age
bene
fit (
in c
ost/d
ay)
ProportionalProportional without forecastForecasted onlyMDP
Figure 17: Percentage reduction in the electricity bill with storage optimization, without solarinstallation
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RTDS Simulation
S1
S2
S3
S4
LoiL
C
idc
S1 S2
-+
S4S3
-1
sin PLL
+
-
+
-
PIv
PIi
iL(ref)
Controller
+-vdc
vdc(ref)
Ibattery
Cin
L
SBattery
+
S
+ -
- PIi
Ibattery(ref)
Proposed Algorithm
Battery
SO
CV
gri
d
+I i
nduct
or
DC-AC ConverterDC-DC boost Converter DC-Link
GridFilter
Controller
_
Price Input
Figure 18: Inverter and dc-dc converter integrating battery with grid
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