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At least 757 records · Page 42

The Internal Compound Parabolic Concentrator (ICPC): a Novel Low Cost Solar Thermal Collection System for Desalination Processes

The research team at UC Merced designed, prototyped, and tested (1) a novel low cost non-tracking solar thermal collector/concentrator called the Integrated Compound Parabolic Concentrator (ICPC) and (2) a low-cost phase-change thermal energy storage system. Together these technologies can significantly reduce the levelized cost of heat from solar thermal sources while also incorporating features of dispatchability and portability. The ICPC allows elevated temperature and efficiency in a low cost, non-tracking collector. The collector has demonstrated 60% ±4% solar to thermal modules efficiency at fluid outlet temperature of 120°C. The raw material cost of the collector system is reduced by utilizing low cost aluminum minichannels. The collector design is also amenable to economic mass production. A 200 tube, 10 kW prototype array was constructed and tested, yielding over 6 kWh/day on average at outlet fluid temperature exceeding 120°C.

14 SOLAR ENERGY↗

Introducing the 9500 Node Distribution Test System to Support Advanced Power Applications: An Operations-Focused Approach

The 9500 Node Test System is a representative section of distribution power system model developed as a part of the GridAPPS-D™ project, an effort funded by DOE as a part of the Grid Modernization Lab Consortium (GMLC) program. The test system was developed to fulfill a growing need to represent the rapidly evolving state of electric distribution systems by combining elements of legacy infrastructure systems, modern feeder topologies, and an anticipated future with smart grid technologies. It also provides a network model capable of supporting the simulation of operational scenarios such as the ones in a utility distribution control center. This test system allows the evaluation of the performance of advanced power applications in real-time, such as one that simulates the operations of an Advanced Distribution Management Systems (ADMS), Distributed Energy Resource Management Systems (DERMS), etc. in a Distribution control center. This model is an extension of the widely used IEEE 8500 Node Test Feeder and is currently being validated to become an IEEE test case to help increase adoption and widespread usage among both academia and industry. It is a full-size model representative of a section of a utility’s distribution system with multiple feeders fed from different substations. The model includes multiple distribution circuits, a sub-transmission system, multiple substations, behind the meter customer rooftop photovoltaics (PV), and multiple utility-scale distributed energy resources. To enable accurate simulations of operational scenarios, the 9500 Node Test System is designed to support procedure-based operations, with the ability to realistically demonstrate switching operations, feeder reconfiguration, adjustment of volt-var control equipment, dispatch of distributed generation, and response to planned and unplanned outages. The 9500 Node Test System includes three radial distribution feeders with 12.3 MVA of average load, consisting of both medium voltage and low voltage equipment each supplied by a different distribution substation. The three distribution feeders are connected to each other through Normally-Open switches which can be closed when needed to simulate restoration scenarios due to a fault. One feeder represents today’s grid with low penetration of customer-side renewables. The second represents a potential future grid with microgrids and 100% renewable penetration. The third has no customer generation resources, a district steam plant, and a utility-scale solar farm. The three diverse circuits were created to allow the simulation of both today’s situation as well as potential future scenarios. All three feeders have customers connected by low-voltage secondary triplex lines. This test system meets all requirements outlined in the report for creating a simulation environment that would enable discussion between key technical stakeholders as well as having the potential to accelerate operational application development and their subsequent testing and integration. The new model is a possible representation of what we believe the distribution grid may look like in the future: a high penetration of renewables, reconfigurable radial and mesh topology, numerous DERs, islanded microgrids, and significantly increased data and measurement density. The system supports both the solution of existing and newer algorithms but also enables the evaluation of applications in a realistic operational environment defined by task oriented procedural steps that represent the interaction between the control center operator and field personnel.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Complementarity of Renewable Energy-Based Hybrid Systems

Increased attention has focused on scenarios of rapid and deep decarbonization of the U.S. electricity supply, with least-cost solutions typically involving significant expansion of renewable energy, energy storage, and transmission assets. Strategies that enable the integration of renewable energy projects while minimizing transmission expansion could be especially valuable in the future. It is within this context that the concept of hybrid power plants (or hybrid energy systems) has gained prominence. One specific example is the FlexPower concept, which seeks to demonstrate how coupling variable renewable energy (VRE) and energy storage technologies can result in renewable-based hybrid power plants that provide full dispatchability and a full range of reliability and resiliency services, similar to or better than fuel-based power plants.

13 HYDRO ENERGY↗

Solar Uncertainty Management and Mitigation for Exceptional Reliability in Grid Operations (SUMMER-GO): Project Final Report

The Solar Uncertainty Management and Mitigation for Exceptional Reliability in Grid Operation (SUMMER-GO) project was recently completed through a collaboration among the National Renewable Energy Laboratory, Maxar, the Electric Reliability Council of Texas (ERCOT), the University of Texas at Dallas, the University of California Berkeley, and the University of Colorado Boulder. The project made significant advances in probabilistic solar power forecasting, both through the development of Bayesian model averaging methods for ensemble forecasting and in bringing these and other advancements into practice with Maxar's delivery of operational forecasts to ERCOT. In addition to creating more reliable solar power forecasts, the project developed methods for their utilization in power system operations. These include the development of risk-aware unit commitment and economic dispatch algorithms and methods to reformulate probabilistic forecasts to be used in these power system operational models. Dynamic power system reserve methods were also developed, which have been shown in silico to create economic savings and reliability improvements on an ERCOT-like system as well as financial savings in the ERCOT system through more granular consideration of the uncertainty associated with solar power forecasts. Finally, a situational awareness tool to help grid operators better understand solar power forecast uncertainty in daily operations was developed and extensively vetted.

14 SOLAR ENERGY↗

Liquid Air Combined Cycle TM for Power and Storage

Liquid Air Combined Cycle (LACC) is a hybrid liquid air energy storage (LAES) system combining energy storage with a combustion turbine to enable large-scale, long-duration energy storage (LDES) while reducing fuel intensity compared to the current state-of-the-art. The LACC technical approach employs proven equipment (cryogenic refrigeration, storage, tanks, pumps, gas turbines, exhaust heat recovery equipment, and turbines) to limit technical risk to a novel organic Rankine cycle (ORC), which was evaluated during this project and found to be feasible. Moreover, LACC storage is safe and relatively compact, to facilitate siting close to loads and within metropolitan regions. The air storage medium is freely available and eliminates supply chain constraints. LACC uses cryogenic air as a storage medium and a gas turbine as the source of heat to drive the discharge process. LACC is distinguished from other LAES technologies by several factors. The charge and discharge processes are decoupled so that cryogenic liquid air is the only storage medium. Other systems also store the higher temperature thermal energy from the liquefaction process in an additional medium. Subsequently, LACC focuses on maximization of the discharge energy and power. LACC also permits the use of commercially available cryogenic refrigeration and storage technologies to increase competition. This project identified product requirements to support market entry and commercialization of the LACC in modular units of approximately 117 MW, each drawing liquid air from customary cryogenic storage tanks capable of storing 75 GWh of dispatchable energy, more than pumped storage hydro or compressed air energy storage technologies. An economic analysis identified the specific liquid air consumption (quantity of liquid air per unit of discharge energy) as a critical parameter. Minimizing the air consumption reduces the specific capital cost ($\$ $/kW) for charging and discharging equipment by reducing the size of piping and turbomachinery. Likewise, the specific cost of energy capacity ($\$ $/kWh) is reduced by increasing the energy deliverable from a given size tank. The cycle was analyzed to identify the optimal equipment selection and operating conditions, which in turn were combined with quotes and cost estimates to calculate the cost of energy from an LACC system. A substantial effort was focused on the ORC, which draws low-temperature heat from the gas turbine exhaust and condenses at low temperature using the cryogenic liquid air as a heat sink. Alternative turbomachinery arrangements were evaluated for feasibility and cost. A technology maturation plan lays out a low-risk approach to development of the novel ORC components and demonstration of LACC technology at pilot scale.

25 ENERGY STORAGE↗

Hawaiian Electric Company (HECO) Grid Optimization with Solar (Cooperative Research and Development Final Report)

The purpose of this project is to provide a software platform that gives utility companies the capability to seamlessly dispatch legacy devices (at both the distribution and subtransmission levels) and distributed energy resources (DERs) to achieve system-wide performance and reliability targets–such as minimizing loss, reducing voltage violation, and corresponding imbalance–for extreme solar futures with well over 100% (capacity) penetrations.

14 SOLAR ENERGY↗

Institutional Framework of Variable Renewable Energy Forecasting in India

The share of variable renewable energy (VRE) in India is growing rapidly, with a national goal of reaching 50% capacity from non-fossil fuel generation by 2030. One implication of this growth is the need for improved VRE forecasting methods. For this reason, the Ministry of New and Renewable Energy (MNRE) in India commissioned this study with support from the United States Agency for International Development (USAID), the National Renewable Energy Laboratory (NREL) in the United States, and the National Institute of Wind Energy (NIWE) in India. The objective of this study was to review the existing institutional framework and suggest changes needed to support the plans for large-scale VRE integration in the country. To achieve that objective, the authors consulted local stakeholders about the status of VRE forecasting in India, reviewed existing studies, and examined VRE forecasting methods around the world to identify best practices. Based on those best practices, the study presents six potential approaches to improve the VRE forecasting framework in India. Approaches include incentivizing VRE forecast improvement and use of the most accurate VRE forecast, creating an institution that will optimize VRE forecasts while maintaining and ensuring access to necessary data for forecasting, implementing a review and certification process for VRE forecast providers, forecasting closer to dispatch time and allowing for more frequent forecast revisions, increasing the frequency of weather forecasts, and aggregating VRE forecasts at the point of interconnection.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

The Hidden Flexibility of the Natural Gas Network for Electric Power Operations: A Case Study of a Near-Miss Winter Event

The U.S. power sector has become increasingly reliant on gas pipeline networks to deliver fuel to natural gas power plants. In addition to supplying relatively low-cost fuel, gas networks offer generators flexibility in their operations through the ability to deliver fuel when needed by using gas storage facilities or linepack if the gas network is at an operating point below its design capacity. However, disruptions or stress events on the gas network - like those occurring in the Northeast and Texas in recent years - can result in limitations on gas availability to generators at times when generation is in short supply. Here we examine a period of stress that occurred in the winter of 2022 in the Western United States. Using data on the region's natural gas pipeline network and electric generators, we build an integrated gas and electric model that closely replicates the actual dispatch of the period. We then evaluate the implications of removing flexibility employed by the gas network operator, which during that period curtailed scheduled gas deliveries to other parties to increase deliveries to natural gas power plants, which requested more gas than initially forecasted. We find that without the flexibility supplied by the gas network operator, there would have been curtailment of gas generation due to gas offtake constraints, requiring the power system operator to redispatch relying on more expensive generation or to potentially shed load. A sensitivity exploring a wind drought further exacerbates the strain, illustrating the potential challenge of managing gas and grid interactions as systems move to higher shares of variable renewable electricity. Based on this example, we discuss potential coordination strategies between the two system operators to ensure that the power system can successfully utilize and rely on the flexibility offered by natural gas networks.

03 NATURAL GAS↗

A Guide for Improved Resource Adequacy Assessments in Evolving Power Systems: Institutional and Technical Dimensions

This paper identifies and evaluates issues in traditional resource adequacy (RA) assessment practices, and how adjusting these practices may affect and depend on existing institutional arrangements for planning and procurement. The paper proposes a technical-institutional roadmap that would allow regulators in vertically-integrated jurisdictions and system planners and operators in restructured jurisdictions to revise RA practices across a range of components. First, we compile a critical review of current RA assessment practices based on (1) interviews with RA practitioners and (2) a review of recent technical literature. We find that (i) RA may need to expand beyond capacity adequacy to ensure energy adequacy – relevant for energy-limited resources such as storage – and potentially some form of ancillary service adequacy (e.g. enough ramping-up and ramping-down capability in the system); (ii) chronological hourly simulations for all hours in the year are the current best practice; (iii) metrics and models used do not reflect economic criteria in system operation and loss of load; and (iv) there is a need to improve representation of weather dependencies and weather data. Second, we review planning and RA reports for several private and public entities that plan generation and/or transmission infrastructure in the continental U.S. to look for existing practices involving resilience assessments. We find no systematic treatment of the costs of extreme weather and other hazards, the benefits of resilience, and resilience metrics in planning analyses and no systematic treatment of resilience metrics, methods, and outcomes for resource adequacy purposes. Third, we create a technical framework for probabilistic RA assessment and use it to study how key choices about how to model power system operations affect the values that are obtained for RA metrics. We find that (i) non-economic dispatch schemes that ignore economic objectives can lead to accurate RA assessments when coordinated with detailed operational strategies; (ii) multi-year data is critical to capture a wide variety of system conditions; (iii) not incorporating transmission limits into RA assessment could lead to substantial underestimation of traditional “expected value” RA metrics; and (iv) new RA metrics that capture event-specific shortfall characteristics should be used as supplements to traditional metrics. Finally, we examine RA assessments and use this information to propose a guide of evolving industry standards for resource adequacy assessments in resource planning and transmission planning. We report minimum, best, and frontier practices for temporal resolution of assessments, metrics and targets, weather data, load forecasting, characterization of variable renewable resources, characterization of transmission and market transactions, RA modeling and integration with planning processes, and capacity accreditation.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Price Formation and Grid Operation Impacts from Variable Renewable Energy Resources

Increasing amounts of Variable Renewable Energy Resources (VREs) impact electricity markets and their operation. VREs are intermittent, zero marginal cost resources that tend to displace emissions-intensive generators in electricity dispatch, reducing emissions, but impacting price formation, revenue sufficiency, reliability, and market power mitigation processes of electricity markets. But VREs are not the only factor that affects operational and financial challenges in electricity markets. Declining natural gas prices, changing resource mixes, as well as different electricity market designs and regulatory policies all factor into the challenges both electricity market participants and operators face in today’s electricity markets. With this in-depth examination of electricity markets and related literature review, we aim to inform on key challenges of market design and operation for successful integration of large amounts of zero marginal cost resources. We’ve identified several areas, including VREs impact on price formation, revenue sufficiency, reliability, market power monitoring and mitigation, as well as how state-level incentives and market design impact VREs and these challenges. With each key challenge, we survey the literature to answer the question: To what extent is the problem, and how has it evolved over time? We first conduct a thorough review of ongoing challenges in electricity markets to understand the problem and review the empirical literature to capture important findings on how VREs, specifically, impact the problem. From this review, we highlight metrics that are important to understanding VRE integration and how market designs and outcomes are evolving with increasing levels of VREs. We propose several empirical models for future research to determine the impact of VREs on these identified challenges.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Implementation Plan for Combined Heat and Power Systems VOLTTRON Controller: Performance Monitoring and Real-Time Commissioning Algorithm Verification

Building-integrated cooling, heating, and power (CHP) systems are more efficient than conventional systems at providing local power and thermal energy, and favorable fuel prices are bound to spur their increased adoption. However, to realize the full benefit of the CHP systems, we must ensure persistence of energy efficient operations. Much of the inefficiency in the current building operations can be eliminated by use of automated performance monitoring (PM), real-time commissioning verification (CxV) and automated fault detection and diagnostic (AFDD) tools. Automation can help system operators make intelligent decisions. Remote and continuous monitoring of system conditions and performance will enable better management and integration of CHP with existing building systems. Continuous PM, real-time CxV, and AFDD could alleviate burdens for operations staff, enhance operations and maintenance (O&M), and improve reliability of building and CHP systems. To address the O&M challenges and to provide a means to maximize the rate-of-return of building-integrated CHP systems, the Building Technologies Office (BTO) within the U.S. Department of Energy’s (DOE’s) Office of Energy Efficiency and Renewable Energy (EERE) initiated a project to design, develop, and field test a VOLTTRON™-based supervisory controller and associated open-source algorithms. These algorithms will ensure real-time optimal operation of a building-integrated CHP system, support electric grid reliability, and lead to achieving the goal of clean, efficient, reliable, and affordable next-generation integrated energy system. Previous report listed the components for which PM, real-time CxV, and AFDD algorithms will be developed, how the algorithms will be tested, and the metrics that will be used to validate the algorithms and their ease of deployment. Deployment of these algorithms in the field will result in a reduction in energy consumption of between 10% and 20% (for both CHP and conventional building systems). This report builds upon the previous report by detailing the process by which PNNL will implement performance monitoring and real-time commissioning algorithms for CHP systems in conjunction with the use of the VOLTTRON CHP economic dispatch agent in host facilities.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

Stochastic Models, Indices & Optimization Algorithms for Pricing & Hedging Reliability Risks in Modern Power Grids: Data Plan - Princeton

We collected and cleaned the synthetic grid data produced by NREL for the Texas and New York synthetic grids. We developed a high dimensional joint stochastic model for load at the zone level, and solar and wind power productions at the asset level, capturing the spatial and temporal dependencies between all the variables, and demonstrated how such a model could be fitted to historical data. We designed and implemented a simulation engine which can produce Monte Carlo scenarios for the hourly day-ahead values of load, and solar and wind power productions at the spatial and temporal resolutions of the historical data used to fit the model. Finally we developed an open-source Python package which can, from an input grid model, efficiently use forecasts and large numbers of Monte Carlo scenarios to provide unit commitment and economic dispatch for each of these scenarios. The high dimensional stochastic model and the subsequent Monte Carlo simulation engine were implemented in the package PGscen and the corresponding UC and ED optimization programs in the package Vatic.

14 SOLAR ENERGY↗

The Role of Hydropower Flexibility in Integrating Renewables in a Low-Carbon Grid

In this study, we looked at the role of hydropower flexibility in variable renewable energy (VRE) integration. Our focus was on facilities that have at least ten hours of storage, i.e., plants that are "dispatchable" and have capacity values similar to that of fossil-fired generation. For our modeling framework, we used NREL's Mid-Case/95% Carbon Reduction by 2035 standard scenario as our foundation. This zonal model is representative of the buildout of a near-zero carbon policy grid in an otherwise "business-as-usual" policy and economic environment. We chose this scenario because it aligns well with the Administration's net-zero carbon grid by 2035 goal.

13 HYDRO ENERGY↗

Grid Resilient, Self-Powered, Fuel Flexible, High Efficiency Heating System (Final Report)

The Grid Independent High Efficiency System (GIHES) delivers a heating system that operates free from the power grid and provides ultra-low emissions and high efficiency heating for residential and commercial buildings. The project demonstrated two weeks of continuous grid independent operation of a storage water heater equipped with a powered damper. The Thermoelectric Generator (TEG) integrated GIHES technology revolutionizes heating systems to provide grid resilient hot water production, while delivering significant value to the end user by eliminating impacts of power interruption and enhancing comfort, convenience and productivity. The system maximizes the thermal-to-electric conversion efficiency by optimizing location and orientation of the TEGs and durability while lowering system costs. The TEGs generate enough power to charge a battery and run the storage water heater unit with a powered damper uninterrupted by providing the required parasitic electrical power for start-up, shutdown and during idling. Several TEGs were analytically and experimentally evaluated based on the size, surface area and the power being generated before designing and fabricating a complete multi-TEG assembly for integration with the water heater. The GIHES technology can be extended to boilers, furnaces and tankless water heaters and integrated with heat pump to further increase the overall equipment efficiency. The technology has the potential to reduce the amount of dispatch power and peak power plant operation. An advanced burner was designed, developed and 3D printed for fuel flexible operation. The burner was designed to enable tighter integration with TEGs for potentially higher TEG output, should this be necessary. A bench-scale test rig to perform testing of a 200,000 Btu/h burner and capable of handling up to 10% H2 (by volume) was setup at GTI’s laboratory with appropriate safety and controls to ensure smooth and safe operation. Testing of the 3D burner showed < 5 ppm NOx emissions can be achieved for the entire firing range and with different levels of hydrogen blends with natural gas. The burner will enable a more integrated TEG-burner module design for improved system performance, should this be required in the future. Techno-economic analysis (TEA) of the TEG integrated with the water heaters was performed. The testing data and the power output were used to develop the TEA. The analysis for the storage unit with damper showed that the TEG integrated system costs $95. This is much lower than a one-time charge needed to wire and install dedicated power. Discussions with TEG manufacturers and OEM’s will provide more detailed information and methods to further lower these costs.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

Backup Power Performance of Solar-plus-Storage Systems during Routine Power Interruptions: A Case Study Application of Berkeley Lab’s PRESTO Model

This technical brief estimates the expected performance of a solar photovoltaic and energy storage system (PVESS) for providing backup power during short-duration power interruption events, accounting for the unpredictable nature of those events. The analysis relies on the Power Reliability Event Simulation TOol (PRESTO), a publicly available model developed by Berkeley Lab to simulate the occurrence of short-duration power interruption events at the county-level. A separate storage dispatch model is then used to simulate PVESS operation and backup performance for each of the large number of interruption events produced by PRESTO. In performing this simulation, the analysis accounts for how the customer operates its battery on a day-to-day basis—in this case, we assume the battery is cycled each day in response to time-of-use rates—and how that, in turn, impacts the battery’s state of charge at the beginning of each interruption event. The analysis presented here is intended to demonstrate an application of the PRESTO model as well as to illustrate some of the key determinants of PVESS backup power performance during short-duration power interruption events. The analysis focuses initially on a typical single-family home in Maricopa County, Arizona, and includes a limited set of scenarios related to system sizing, backup power configuration, and whether the customer charges its battery storage system from the grid during normal operating conditions. The analysis also presents comparative results for two other counties, in Massachusetts (Middlesex) and California (Los Angeles), illustrating how regional differences in climate, interruption patterns, and retail rate structures can affect PVESS performance as a backup power source. In the conclusions, we highlight a number of other important considerations for evaluating PVESS backup power capabilities.

14 SOLAR ENERGY↗

GEN3D Experimental and Numerical Development of GEN3 Durability Models

Understanding of the high temperature durability of particles and the materials that contain them is critical to next generation of concentrating solar power (CSP) technology. Here we studied the durability of particles and their containment materials under extreme UV cycling, thermal cycling, and in low-speed high temperature mechanical wear situations. The optical stability of seven candidate particles has been determined following exposure to the high temperature conditions present in a generation 3 particle-based CSP technology. Particle solar weighted absorptance and emittance measured periodically during 10,000 high solar irradiance exposure cycles and up to 400 hours of isothermal aging has been documented. The particle aging due to repeated exposure to concentrated solar flux represented the 30-year lifetime of a power plant. Models were fit to the absorptivity and emissivity data following the isothermal aging provides the projected optical degradation of the particles as a function of temperature. Mechanical wear was studied through the use of custom developed wear testing facilities for measuring high temperature impact wear, abrasion wear, and particle attrition. Additionally, a novel technique for measuring the high temperature mechanical properties of single particles was developed. Through these tests it was observed that high nickel alloys generally showed lower wear than comparable iron based steels, particularly at elevated temperatures of 800°C. Mechanical wear at these temperatures is a highly complex phenomenon combining both mechanical wear and oxidation. Additionally, the containment materials wear rates are influenced by the particles (both hardness and roundness), making the wear mechanisms complex. The initial wear test conducted in the abrasion test rig revealed a substantial amount of oxide materials in the particle bed after testing (in relative to later tests), and substantially more wear, likely indicating a need for concern in startup operation of particle facilities to not incur high wear from the presence of oxides. Particle attrition experiments have only been conducted for a single material but increase size distribution, reduction in circularity, and particle diameter is observed. Efforts to develop predictive models was limited due to a testing campaign that prioritized testing materials for particle pathway developers over building a comprehensive design of experiments. The results discussed in this report inform future CSP developers and researchers further de risking the technology and assisting in its future development. ParticleBased CSP development provides a path to dispatchable solar power generation with storage at a price competitive in the current energy market. Lowering the cost of CSP technology provides a carbon free power generation solution that can assist in the transition from fossil fuels to renewable sources of electricity.

14 SOLAR ENERGY↗

Integrated Assessment Modeling of Grid Resilience: GCAM-to-PCM Scoping

Deep decarbonization towards a net-zero emissions future and the associated growth in power demand, renewables, and changes in water availability will require significant evolution in grid planning. Many obstacles threaten the viability of near-term generation capacity build out, including the need for large-scale transmission expansion. Current very-long term planning tools do not adequately model physical representations of economic dispatch and system topology down to inter- and intra-regional transmission and distribution infrastructure. This project attempts to fill that gap.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Average Incremental Cost Pricing for the AC Unit Commitment Problem [Rev. 1]

Unit Commitment (UC) problems that consider the Alternating Current (AC) model of the transmission network have long been considered intractable to solve at scale by the power system community. Recently, the Grid-Optimization (GO) Competition held by the Advanced Research Project Agency-Energy (ARPA-E) has facilitated the development of the first algorithms to solve large-scale ACUC problems. This new capability opens a path towards the explicit consideration of the AC transmission network model in UC problems used to clear day-ahead electricity markets. This calls for the analysis of electricity market structures that accommodate both the continuous non-linearity of the AC transmission network and the discrete non-linearity of the UC problem simultaneously. This paper serves as an initial effort to do so by proposing an Average Incremental Cost (AIC) pricing structure that is designed around the ACUC problem. In particular, an AIC one-pass pricing problem is proposed that represents a continuously constrained variant of the ACUC problem and allows for the computation of Locational Incremental Prices (LIPs) for both real and reactive power as the local optimal Lagrange multipliers of the power balance constraints. To avoid degeneracy, the pricing problem includes a small parameter ϵ > 0. Under certain assumptions market participants are shown to realize profit that converges to a non-negative value as ϵ approaches zero, practically ensuring profitability for small values of ϵ. We additionally provide many simple and important examples that provide intuition and insights into the proposed prices. Examples illustrate the basic concept of AIC pricing, the derived profitability results, the existence of multiple LIPs, the importance of including reactive power in the dispatch and pricing problems, the need for reactive power prices, and the improved incentives exhibited by LIPs as compared to traditional Locational Marginal Prices (LMPs). We additionally indicate many directions for future work including analysis of larger test cases.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗