Sandia National Laboratories: Overview of Electricity Markets Projects.
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Garcia, Manuel Joseph↗
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Search indexed NASA NTRS and DOE OSTI research on propulsion, heat transfer, battery materials and energy systems. Follow report and document links to the original sources.
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Local Electricity Markets
This book provides a thorough, yet concise, review on the current status of LEM development all around the world, including the most promising research models and opportunities that are being proposed; an overview of the regulatory issues on the different Continents a discussion on the current infrastructure (both hardware and software) that is implemented and that is expected to facilitate the implementation and wide spread application of local energy markets (e.g., resulting from the investments already made in SG deployment); a review of current applications and practical implementations of LEMs; and a wrap-up and discussion on the most relevant paths for future research and development in this field of study.
day-ahead market, peer-to-peer, bilateral market, ↗
A Blockchain Based Co-Simulation Framework for Integrating DERs into Wholesale Electricity Markets
As the number of distributed energy resources (DERs) continue to increase across energy-delivery systems, there remains a need for integrating their capabilities into traditional grid operations. In this paper, a blockchain-based solution is proposed to facilitate FERC's Order No. 2222 implementations. The presented use-case enables small-scale DERs to participate in wholesale market operations through DER aggregators, while also enabling local distribution system operators to enforce distribution system constraints in a secure and traceable manner. The presented use case is built around the Unified Testing Platform (UTP) being developed as a part of the Blockchain for Optimized Security and Energy Management (BLOSEM) project. This is a multi-lab effort intended to simplify the deployment of blockchain-powered grid solutions by enabling the integration of simulation tools, and blockchain technologies through the use of system-agnostic interfaces that provide a modular, interoperable, and reusable connectivity layer.
blockchain testing↗
A Blockchain Based Co-Simulation Framework for Integrating DERs to Wholesale Electricity Markets: Preprint
As the number of distributed energy resources (DERs) continue to increase across energy-delivery systems, there remains a need for integrating their capabilities into traditional grid operations. In this paper, a blockchain-based solution is proposed to facilitate FERC's Order No. 2222 implementations. The presented use-case enables small-scale DERs to participate in wholesale market operations through DER aggregators, while also enabling local distribution system operators to enforce distribution system constraints in a secure and traceable manner. The presented use case is built around the Unified Testing Platform (UTP) being developed as a part of the Blockchain for Optimized Security and Energy Management (BLOSEM) project. This is a multi-lab effort intended to simplify the deployment of blockchain-powered grid solutions by enabling the integration of simulation tools, and blockchain technologies through the use of system-agnostic interfaces that provide a modular, interoperable, and reusable connectivity layer.
blockchain testing↗
Managing Uncertainty and Flexibility in Day-Ahead Electricity Markets
Net load imbalances from day ahead forecasts can lead to significant grid operations costs and are expected to increase as variable renewable energy adoption grows. We propose a new wholesale market product to manage the risk of net load imbalances called Flexibility Options. This product relies on probabilistic forecasts to estimate flexibility demand and would be co-optimized in the day-ahead market. We also propose stochastic methods that enable DER and flexible load aggregators to participate in flexibility markets while considering the uncertainty in weather and occupant behavior.
day-ahead market↗
Methods to Incorporate Energy Efficiency in Electricity System Planning and Markets
Electric utilities, independent system operators and regional transmission operators have acquired significant levels of energy efficiency over several decades. The predominant approach utilities use to consider energy efficiency in electricity system planning and ISO/RTOs use in wholesale electricity markets is to reduce load forecasts to account for estimated impacts of relevant policies and programs. But an increasing number of states and utilities are interested in improved analysis of energy efficiency in electricity system planning and wholesale electricity markets. This report describes how to consider energy efficiency as a potential resource for the future by allowing it to compete with all other electricity system resources. Increasing levels of wind and solar, growth in peak demand, and electrification of transportation and other new loads have increased the need for a more flexible and responsive electricity system. Considering energy efficiency as a resource option can support these and other electricity system objectives, including grid reliability, reduced electricity costs, energy efficiency targets, and lower air pollutant emissions. The October 2019 slides were presented at the American Council for an Energy Efficient Economy Energy Efficiency as a Resource conference and provide an overview of the report. Portions of the report were included in the American Council for an Energy Efficient Economy Energy Efficiency 2020 Summer Study paper, Planning for the Grid of Tomorrow: Energy Efficiency as a Resource in Utility Resource Plans.
29 ENERGY PLANNING, POLICY, AND ECONOMY↗
WISP: Watching grid Infrastructure Stealthily through Proxies (Final Technical Report)
The complex interdependencies of cyber systems (sensors and communications), physical grids and associated electricity market operations make protecting electric power grids a significant challenge. The energy sector is constantly under new, targeted, advanced and dangerous cyber-attacks that have the potential to result in the loss of human life. These threats are further exacerbated by our need to modernize the grid. One focus of cyber security research in smart grids is the securing of the SCADA system through advanced intrusion detection systems (IDS) and bad data detection algorithms in state estimation. These methods either require full knowledge of the system topology and parameters or fail to understand the physical behaviors under attack. WISP (Watching grid Infrastructure Stealthily through Proxies) is designed to provide additional protection to the power grid using only publicly available data. In particular, WISP exploits the spatio-temporal nature of the real time locational marginal prices (LMPs), in conjunction with other information such as bids, weather, outages and load data to analyze anomalous power pricing behaviors and then correlate those observations to localize regions of interest and identify potential cyber events. WISP is non-intrusive as the tool is deployed as a service in the Cloud or on premise and provides reliable information to system operators for enhanced situational awareness, without impeding energy delivery functions. The WISP technology comprises three modules: the data-driven anomaly detection core, the vulnerability and risk analysis and the root cause analysis. The data-driven anomaly detection core performs the tasks of feature selection, anomaly detection and attack region localization. The vulnerability and risk analysis module provides system level information of the vulnerable variables and times, assisting the operators in selecting monitoring and protection nodes. The root cause analysis module takes the detection results and identifies potential operational conditions that contribute to the detected anomalies. In Phase I, we have demonstrated the feasibility and effectiveness of WISP. We developed a realistic electricity market simulator capable of generating normal and attack market data under various operational conditions. We developed a series of cyber-attack detection and analysis algorithms and evaluated them under multiple data sources. Finally, we integrated all modules into an end-to-end software, providing functions for data management, data analytics and visualization. Specifically, we have achieved: (i) real-time data acceptance from external utility interfaces with >99% acceptance rate; (ii) high performance anomaly detection algorithms with >98% detection accuracy and <0.1% false alarm rate; and (iii) ultra-low computing delay <50 milliseconds. Additionally, our team developed algorithms to identify the vulnerable variables in electricity market operations and root cause analysis functions to identify major contributors to the price spikes. These ancillary modules are necessary when deploying WISP in real world industry environment. In Phase II, we have demonstrated the effectiveness of WISP software on realistic largescale power systems. We performed red team testing for the Phase I WISP software and identified software vulnerabilities and implemented corresponding mitigation solutions. We adapted the electricity market simulator for the Texas synthetic 2000-bus system and generated datasets for the false data injection attacks. We created database and visualization interfaces for the Texas system and the ISO New England system. We performed software optimization in terms of operation efficiency, computing speed and detection accuracy. Finally, we tested the software on the Texas system and the ISO New England system and evaluated the detection performance. Overall, we achieved above 89% detection rate, below 3% false alarm rate and below 37 seconds of end-to-end detection delay.
24 POWER TRANSMISSION AND DISTRIBUTION↗
Electric transmission value and its drivers in United States power markets
Electric transmission infrastructure plays a vital role during extreme weather and supply disruptions and can enable low-cost electricity systems. This paper contributes to a more complete understanding of the value and cost-effectiveness of transmission, as well as barriers to its development. By studying wholesale energy market prices in the United States between 2012 and 2022, we find that additional transfer capacity between regions would have been especially valuable, with a median value of $116 million per GW per year. This capacity would often have provided balanced benefits to each region. The market value of transmission was highly influenced by a small fraction of time: 5% of hours typically captured at least 45% of the total value. These peak periods were primarily driven by unforeseen changes in conditions within one day of operations. Annualized transmission infrastructure cost estimates were lower than the average market value for most locations, including all links crossing regional seams, where the value-to-cost ratio was often greater than 4. This suggests that there are barriers to developing valuable grid infrastructure. These results complement forward-looking modeling studies and support efforts to improve modeling practices.
Energy economics↗
Capacity Markets for Transactive Energy Systems
Capacity markets provide important incentives for resource adequacy in electricity markets and may become more important for providing sufficient revenue and generation capacity with changes to energy market prices driven by increasing levels of zero marginal cost resources. However, current capacity market designs also have important shortfalls that may limit the benefits they can provide to the future grid. Current capacity markets are primarily designed for participation from conventional thermal generators, but markets are evolving with increasing levels of variable renewable energy resources. However, further reforms may be necessary to enable more participation from DERs and demand-side resources. To understand the benefits and shortfalls of current capacity market design, we review the historical reasons electricity markets have needed capacity markets or capacity payments for resource adequacy, and how current capacity market designs may create challenges for incorporating increasing levels of DERs and demand-side resources. We then consider how transactive systems, which allow the coordination of bids and offers for DERs and demand-side resources through a market interaction approach, administered by a Distribution System Operator (DSO), can address traditional resource adequacy problems due to inelastic consumer demand. We also consider the need for a DSO-level capacity market in helping to meet resource adequacy, reliability, and other electricity market objectives. We find that because the missing money in electricity markets is largely driven by incentives to meet resource adequacy goals, and the bulk grid would always supply power to the DSO, that resource adequacy is unlikely to be a determining factor in the need for a DSO-level capacity market. Many current reliability problems could also be addressed by the incorporation of more flexible demand enabled with transactive energy systems. However, other DSO objectives, including resilience, reactive power, voltage control, environmental policies, and energy equity could lead to specific challenges that could be aided by a DSO-level capacity market. We consider the possibility of a DSO-level capacity market in addressing these challenges as well as its potential role in coordinating with the Independent System Operator (ISO) who operates the wholesale market. We conclude with suggestions for future research, including the need to develop analytical models of DSO-level capacity market designs to address these potential objectives and examine their implications for DSOs and consumers.
29 ENERGY PLANNING, POLICY, AND ECONOMY↗
Commercial Building Planning and Retrofitting Strategy for Grid Services
The increasing integration of distributed energy resources (DERs) plays an important role in improving energy consumption efficiency. In September 2020, the Federal Energy Regulatory Commission (FERC) approved Order 2222 which opens wholesale electricity markets to small capacity DERs. The benefit of this new FERC Order 2222 is that DERs, such as rooftop solar panels and batteries, will be able to participate in regional electricity markets and provide grid services. Meanwhile, the planning and operation strategies of DERs are facing new challenges to account for the impact of the wholesale market with numerous uncertainty factors. Therefore, in this paper, we propose a new planning and retrofitting model for long-term commercial buildings that considers both DER investment and market participation. Specifically, we explore the capability of implementing DERs for grid services. The effectiveness of the proposed model is validated using real-world data. Simulation results also validate that participating in grid services can significantly increase revenues through appropriate building energy management and shorten the payback period of DER investments.
building energy management↗
Maximizing Demand Flexibility with Buildings and FERC 2222
In 2020, the Federal Energy Regulatory Commission (FERC) approved a rule, Order 2222, that requires market operators to create pathways enabling distributed energy resource aggregators (DERAs) to compete in all regional organized wholesale electric markets. The goal is to encourage various forms of distributed energy resources (DERs) to participate in electricity markets in a way that would enhance competition, encourage innovation, and drive down costs for consumers. In this document, we briefly discuss how FERC Order 2222 affects the opportunities for participation in electricity markets for building owners and operators, the role of aggregators, and the involvement of buildings in the electricity market.
demand flexibility↗
Emerging Trends in Power System Planning Models
This presentation highlights NREL's power system modeling capabilities, both existing and the future direction of improvements. Specific enhancements to the ReEDS (Regional Energy Deployment System) model and a new electricity market design testbed called EMIS (Electricity Markets and Investment Suite) were described. This content was part of a broader discussion to help inform the National Academies of Sciences, Engineering, and Medicine Committee on the Future of Electric Power in the U.S. on existing power system models and improvements needed in these models to capture the increasing complexity and interconnectedness of the power system.
capacity expansion modeling↗
Electric Vehicle Supply Equipment: An Overview of Technical Standards to Support Lao PDR Electric Vehicle Market Development
This presentation is an overview of the technical standards governing electric vehicle supply equipment and was presented to support the development of the Lao PDR electric vehicle market.
Advanced Energy Partnership for Asia↗
Technoeconomic assessment of hydrogen cogeneration via high temperature steam electrolysis with a light-water reactor
Increased electricity production from renewable energy resources, coupled with low natural gas (NG) prices, has caused existing light-water reactors (LWRs) to experience diminishing returns from the electricity market. This reduction in revenue is forcing LWRs to consider alternative revenue streams, such as introduction hydrogen production or desalination, to remain profitable. This paper performs a technoeconomic assessment (TEA) regarding the viability of retrofitting existing pressurized-water reactors (PWRs) to produce green hydrogen (H 2 ) via high-temperature steam electrolysis (HTSE). Such an integration would allow nuclear facilities to expand into additional markets that may be more profitable in the long term and eliminate CO 2 emissions from the hydrogen production process. Here, to accommodate such an integration, a detailed single market levelized cost of hydrogen (LCOH) and multimarket analyses were conducted of HTSE process operation, requirements, costing, and flexibility. Alongside this costing analysis, market analyses were conducted on the electric and hydrogen markets in the PJM interconnect. Utilizing a novel stochastic, dispatch optimization approach results suggest that a positive gain is achievable, and by operating in multiple markets, the nuclear facility can avoid the sale of electricity during times of low electricity market pricing, while maintaining the ability to capitalize on the high electricity market pricing. It should be noted that the analysis conducted is a differential cash flow analysis and, as such, does not present profit levels. LCOH analysis results demonstrate the potential exists to produce hydrogen at a cost as low as $1.20/kg. This price is lower than traditional steam methane reforming (SMR) allowing nuclear based hydrogen production to disrupt the existing hydrogen production market.
22 GENERAL STUDIES OF NUCLEAR REACTORS↗
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↗
Arbitrage and Capacity Firming in Coordination with Day-Ahead Bidding of a Hybrid PV Plant
A hybrid PV plant (HPP) combines a photovoltaic (PV) plant with a battery energy storage system (BESS), which is considered a promising step towards the future of renewable power plants by the U.S. Department of Energy. When the renewable penetration reaches a significant level, a hybrid PV plant can bid in as a controllable thermal plant in the future electricity market. In this study, a bidding and BESS scheduling model is proposed for the HPP. The robust optimization (RO) technique has been utilized to identify the worst-case scenario of uncertainties during the bidding process. To address the overly conservative issue of the single-stage RO, we have decoupled the BESS schedule for arbitrage and PV capacity firming by a two-stage RO formulation. By comparing the output of single-stage RO and two-stage RO, the two-stage RO bids and schedules in a more aggressive manner, which increases the income of HPP. Also, the penalty of under-generation is considered in our model so that the day-ahead bidding decision and arbitrage schedules can be adjusted based on the potential UNDER-GENERATION penalty. Because the proposed model is non-convex and contains multi-stages, the Column-and-Constraint Generation (C&CG) algorithm is applied to the model as the solution. The proposed model has shown better economic performance compared to a state-of-art single-stage bidding method in case studies.
BESS scheduling↗
Solar heater/cooler for mass market
Electrical energy consumption is reduced by half for 2 1/2 story office building. 138 liquid flat plate solar collectors are mounted on building roof, which faces nearly due south. Final project report includes detailed drawings and photographs, operation and maintenance manual, acceptance test plan, and related information.
Source record↗
A Comprehensive Scheduling Framework using SP-ADMM for Residential Demand Response with Weather and Consumer Uncertainties
This paper presents a comprehensive scheduling framework for residential demand response (DR) programs considering both the day-ahead and real-time electricity markets. In the first stage, residential customers determine the operating status of their responsive devices such as heating, ventilation, and air conditioning (HVAC) systems and electric water heaters (EWHs), while the distribution system operator (DSO) computes the amount of electricity to be purchased in the day-ahead electricity market. In the second stage, the DSO purchases insufficient (or sells surplus) electricity in the real-time electricity market to maintain the supply-demand balance. Due to its computational complexity and data privacy issues, the proposed model cannot be directly solved in a centralized manner, especially with a large number of uncertain scenarios. Therefore, this paper proposes a combination of stochastic programming (SP) and the alternating direction method of multipliers (ADMM) algorithm, called SP-ADMM, to decompose the original model and then solve each sub-problem in a distributed manner while considering multiple uncertain scenarios. The simulation study is performed on the IEEE 33-bus system including 121 residential houses. Here, the results demonstrate the effectiveness of the proposed approach for large-scale residential DR applications under weather and consumer uncertainties.
24 POWER TRANSMISSION AND DISTRIBUTION↗