Co-Optimization of Ancillary Services Providing Primary Frequency Control in the Day-Ahead Market
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Abstract This paper evaluates the technical and economic feasibility of repurposing decommissioned offshore oil and gas platforms as electrical substations for offshore wind projects in the U.S. Gulf of America, a region characterized by relatively low and highly variable wind speeds, extensive legacy offshore infrastructure, and exposure to merchant electricity markets. A unified techno-economic framework is developed using the Repurposing Offshore Infrastructure for Continued Energy (ROICE) Economic Model (REM) to integrate Gulfspecific wind resource assessment, commercial wind turbine performance, offshore infrastructure cost modeling, and wholesale electricity market exposure. Gulf wind speed data are vertically extrapolated to turbine hub height and combined with manufacturer power curves to compute annual energy production and capacity factors across a broad portfolio of commercial turbines, enabling identification of turbine designs best suited for low-wind offshore environments. Hourly electricity price data from the Midcontinent Independent System Operator (MISO) day-ahead market are incorporated to characterize revenue potential, price volatility, and the temporal alignment between wind generation and market conditions. In addition, a conceptual framework for offshore battery energy storage system (BESS) integration is developed to support future investigation of market-responsive energy shifting at repurposed platforms. Results from the turbine evaluation demonstrate that machines with lower cut-in wind speeds and earlier ‘rated-power’ characteristics significantly outperform larger, industry-standard offshore turbines for the same net power under Gulf wind conditions, underscoring the need for region-specific technology selection. Market analysis further reveals substantial price variability and limited intrinsic alignment between wind production and high-price periods, motivating consideration of operational flexibility mechanisms. While storage optimization is not implemented in this study, the REM framework establishes a transparent and replicable foundation for co-evaluating turbine selection, infrastructure constraints, and market exposure, providing a practical pathway for assessing the potential role of repurposed offshore platforms in enabling economically viable offshore wind development in the Gulf of America.
HydroBoost is the most realistic revenue optimization tool for the hybridization of hydropower and battery energy storage systems to date. The innovative representation of how operators actually schedule hydropower in practice results in more realistic predictions of revenue and operations. Unlike other optimization tools, HydroBoost generates forecast energy prices with uncertainty to use in the optimization. This allows HydroBoost to give users a range of potential revenue with an upper bound using the perfect foresight pricing and a lower bound using a naive persistence forecast model. Additional forecast can be generated and used in the optimization, such as additive models, random forest, and neural networks to give further insight into potential revenue. HydroBoost has been designed to be applicable for both run-of-river and reservoir storage sites. The primary focus is on the day-ahead market and requires year-long data with an hour time-step. All time-series input and constraints are contained in an Excel worksheet for convince. The user will run the forecasting generation first with a Python script to give the optimization model the necessary requirements. Next the optimization is ran using Julia and results are generated and stored into a directory as csv files. HydroBoost includes an additional module to generate figures based on the results of the optimization simulation. The results help analyze the results and users to draw insights into how the hydro and battery systems are operated and the revenue each is producing. Additionally, the difference between the perfect foresight model and models that include forecast can easily be inspected.
The presence of variable renewable energy resources with uncertain outputs in day-ahead electricity markets results in additional balancing needs in real-time. Addressing those needs cost-effectively and reliably within a competitive market with unbundled products is challenging as both the demand for and the availability of flexibility depends on day-ahead energy schedules. Existing approaches for reserve procurement usually rely either on oversimplified demand curves that do not consider how system conditions that particular day affect the value of flexibility, or on bilateral trading of hedging instruments that are not co-optimized with day-ahead schedules. This article proposes a new product, ‘Flexibility Options', to address these two limitations. The demand for this product is endogenously determined in the day-ahead market and it is met cost-effectively by considering real-time supply curves for product providers, which are co-optimized with the energy supply. As we illustrate with numerical examples and mathematical analysis, the product addresses the hedging needs of participants with imbalances cost-effectively, provides a less intermittent revenue stream for participants with flexible outputs, promotes value-driven pricing of flexibility, and ensures that the system operator is revenue-neutral. This article provides a comprehensive design that can be further tested and applied in large-scale systems.
This paper presents a novel bidding curve design algorithm tailored for hybrid power plants (HPPs) to participate in the wholesale electricity market. Utilizing forecasts for photovoltaic (PV) generation and available battery power, our algorithm strategically computes the bidding curve to maximize HPP profit while adeptly managing the inherent uncertainty associated with PV power generation. In addition, the introduction of the penalty cost in HPP bidding curves provides the system operator a tool to effectively manage the system-level uncertainty that caused by HPPs. Numerical analysis through Monte Carlo simulations confirms that our bidding curve methodology outperforms the benchmark across various scenarios.
Here, in this paper, we propose a tri-level, nested, two-stage price-based demand response (PBDR) framework that considers distribution locational marginal price (DLMP) as DR enabler between load-serving entities (LSE), demand response providers (DRPs), and customers in the day-ahead distribution market. It enables LSE and customer interactions by using multiple DRPs, positioned in-between, and independently optimizes their objectives. The problem is formulated using linear power flow with approximated power losses and its application in DLMP as DR pricing. The tri-level problem is solved using a nested reformulation & decomposition (R&D) method and tested on the real Indian-108 bus distribution system under various dynamic pricings. Further, the temporal–spatial variations in DLMPs are assessed using fairness criteria. Numerical analyses demonstrate that DLMP applications can effectively improve economic efficiency, and transparency in DR programs valuation with a favorable fairness margin. The results show that DLMP as DR pricing signal induces (0-2) % variation in DLMP for DR participation up to 10 %. Further, it gives over 90 % fairness over temporal–spatial variation for all the customers.
The HERB Model provides a stochastic optimization framework for hybrid power plants (Storage plus Renewables) participating in day-ahead electricity markets. It considers uncertainty in market prices and renewable energy generation and generated risk-constrained price-quantity bid curves with limited, non-decreasing price steps.
Security-constrained unit commitment (SCUC) is a key component in power system operations. When AC power flow constraints are considered in the SCUC model (AC-SCUC), the problem becomes extremely difficult due to its discrete and non-convex nature, as described in “Grid Optimization Competition Challenge 3 Problem Formulation (GOCC)”. There are four main challenges: (i) Discrete decisions regarding unit online/offline status and start-up/shut-down procedures for every single unit. The number of discrete decision variables increases considerably when a system integrates multiple generators; (ii) Configuration-based combined-cycle formulations, and multi-commodity models that include ramping products, spin/non-spin products, and regulation up/down products. The combined-cycle units introduce additional discrete decision variables and auxiliary service products further complicate the model by connecting multi-commodity products’ continuous and discrete variables; (iii) SCUC models with AC power flow constraints are far more complex due to massive bilinear terms in the large-scale nonlinear power balance equations. The nonlinear power balance equations are further complicated by the discrete step control variables of shunts; (iv) N − 1 contingency analysis. The size of the model increases linearly with the number of contingencies considered, greatly increasing the size of the optimization model. Accordingly, there is an emergent need to develop a robust algorithm capable of deriving a high-quality solution in a short time and passing through contingency tests simultaneously. In this project, we explore innovative techniques to address this challenging problem by integrating advanced polyhedral theory, approximation methods, relaxation strategies, decomposition techniques, and parallel computing. Each technique approaches the problem from a different perspective, leveraging its specific strengths to tackle distinct challenges. Each individual method has demonstrated its effectiveness in the PI’s previous research. Their integration is expected to significantly reduce the computational time required to solve the proposed complex problem. Successful completion of this project has the potential to transform the industry by enhancing optimization solvers capable of handling large-scale day-ahead energy market clearing models within strict time constraints, while incorporating AC power flow constraints. This advancement will lead to reduced overall generation costs and, consequently, increased social welfare.
This report presents a modeling and evaluation framework developed through the Inter-Regional Transmission Operational Coordination (IRTOC) project to study market-to-market (M2M) congestion management across day-ahead and real-time markets. The framework extends the Sienna platform through Sienna Decomposition, a multi-stage evaluation architecture that enables flexible representation of multiple regions and systematic assessment of alternative market coordination designs. Additional modeling capabilities include reserve deliverability constraints, High-Voltage Direct Current (HVDC) optimization for Alternating Current (AC) congestion management, and several real-time distributed coordination algorithms. Case studies using the RTS-GMLC test system and a large-scale Eastern Interconnection model demonstrate that the framework can evaluate alternative coordination structures and quantify their economic and operational impacts. The proposed framework provides a scalable platform for analyzing inter-regional coordination strategies in large-scale electricity markets.
Congestion occurs when available least-cost energy cannot be delivered to some loads because transmission facilities do not have sufficient capacity to deliver the energy. When a transmission constraint is binding (i.e., its limit is reached) it has an associated shadow price – the marginal value of relieving the constraint (i.e., of increasing the asset’s flow limit). This report contains one page dedicated to each ISO and RTO in the U.S. documenting empirical outcomes related to binding constraints during 2022 through 2024 for both the day-ahead and real-time markets. For each system operator and market timeline, the report contains two maps of infrastructure elements that are color-coded based on congestion characteristics. The first map provides information on how often each element has a binding constraint, that is, the frequency of congestion on the element. The second map reflects the intensity of congestion, measured as the sum of shadow prices.
This presentation will provide an overview of the development of a Multi-Day Energy Availability Product under the DOE ENERGISE project, conducted in collaboration with Southwest Power Pool (SPP), the National Laboratory of the Rockies, Polaris, and the Electric Power Research Institute (EPRI). Existing market clearing processes are limited to day-ahead and real-time horizons, which may result in insufficient pricing signals and compensation for resource availability over multi-day timeframes (e.g., incentives for fuel procurement and energy-limited resource preparedness). This effort aims to develop a new market product and associated clearing process to value and procure resource energy availability over a multi-day horizon. The team will present progress to date and solicit advisory group feedback on proposed methodologies and preliminary findings.
The Glen Canyon Dam (GCD) is a Colorado River Storage Project (CRSP) power resource that is a component of the Salt Lake City Area Integrated Projects (SLCA/IP). The 2016 record of decision (ROD) for the GCD long-term experimental and management plan (LTEMP) final Environmental Impact Statement (EIS) specified criteria for GCD monthly water releases, daily and hourly operating limits, and experimental releases. This report examines the financial implications of the high flow experiment (HFE) conducted at GCD during the spring of Water Year (WY) 2023 as required by the LTEMP HFE Protocol. This report is part of a series of reports that describe the financial costs of LTEMP experimental releases since the 2016 ROD was adopted in January 2017. Previous reports analyzed the impact of several past HFEs and Bug Flow Experiments. This report focuses on the HFE conducted in April 2023. For this experimental release, financial costs of approximately $1.33 million were incurred because the HFE required sustained water releases exceeding the power plant’s maximum turbine flow rate. In addition, during the experiment, operators were not allowed to shape GCD power production, either to follow Firm Electric Service (FES) customer day-ahead energy deliveries or to respond to market prices. This study identifies the main factors contributing to the HFE costs and examines the interdependencies among these factors. It applies an integrated set of tools to estimate Western Area Power Administration (WAPA) financial impacts by simulating GCD under two types of cases; namely, (1) a “With Experiment” case that mimics the operations that actually occurred and (2) a “Without Experiment” case that simulates operations under the assumption that the HFE did not occur. The “With Experiment” case mimics operations during the HFE and the entire month the HFE occurred. It complies with LTEMP hourly and daily operating criteria. The “Without Experiment” case assumes that the HFE did not occur. The monthly water release volume is assumed to be identical under both cases. The Colorado River Storage Project Python-based model (CRiSPPy) model was the main modeling tool used to simulate the dispatch of the GCD hydropower plant and associated water releases from Lake Powell. In the modeling process, the research team used extensive data sets and historical information on SLCA/IP power plant characteristics, hydrologic conditions, and WAPA’s power purchases and sales prices. In addition to estimating the financial impact of the HFE, the team used the CRiSPPy model to gain insights into the interplay among ROD operating criteria, exceptions made to criteria to accommodate the HFE, and WAPA operating practices.
Accurate day-ahead load forecasting is essential for reliable power system operations and market efficiency. System operators such as the Midcontinent Independent System Operator (MISO) rely on forecasts from multiple vendors, yet combining them effectively remains a persistent challenge due to vendor-specific biases. This paper presents a novel LSTM-Attention Fusion Network with Error Representation (LAF-Net) that enhances day-ahead hourly load forecasting through deep residual learning and multi-modal cross-attention. The proposed model builds a historical error memory from past vendor performance and dynamically queries it with future hour context to generate adaptive, hour-specific trust weights for each vendor. A bounded residual correction further refines forecasts by mitigating systematic and temporally localized errors. Tested on real MISO LBA data with multi-vendor forecasts, LAF-Net consistently outperforms the best vendor baseline across all 38 LBAs, achieving more than a 40% reduction in system-level mean absolute error (MAE) during peak load hours relative to the best vendor baseline.
The Flexible Resource Scheduler is a hierarchical controller that manages the distributed energy resources in a distribution substation or distribution feeder to provide a firm commitment of power flow at the substation or feeder head to be scheduled in transmission-level markets as an aggregated demand resource. It is the reference controller for the FAST-DERMS Architecture, developed in tandem with the architecture under the DOE FAST-DERMS project. It is comprised of a day-ahead stochastic optimization, which schedules substation power flow and reserves, a intra-hour MPC, which generates dispatch base points for DER, and a real-time PID controller maintaining that dispatches DER to maintain the substation power around the base points. The repository also includes a representative aggregator controller, and all of the necessary components to run a simulation using PNNL's GridAPPS-D software with the controller.
The need for distributed and adaptable energy resources that can handle the growing unpredictability in both supply and demand is rising as the power system continues to modernize. In order to satisfy those needs and maintain grid resilience, nuclear power plants can dynamically control their output, despite typically being used as baseload generators. By incorporating energy storage and renewable energy sources, nuclear integrated energy systems are designed to satisfy the electrical and thermal demands of different end-user applications while ensuring flexible power operation. These systems generate revenue by participating in both wholesale and ancillary services electricity markets, as well as commodity markets for various byproducts generated from coupled industrial processes. This study addresses the economic dispatch efficiency of a tightly coupled nuclear integrated energy system comprising a gigawatt-scale light water reactor, commercialized in the U.S., a high-temperature steam electrolysis unit, a district heating network, and specified electrical loads. To demonstrate the nuclear power plant’s flexibility within the day-ahead unit commitment and economic dispatch framework, while maintaining equilibrium even during periods of refueling outages, this paper develops a mixed-integer linear programming framework that models the subsystems and components of its nuclear steam supply system. A systematic comparative analysis of flexible versus baseload nuclear power plant operation under varying levels of renewable energy integration indicates that flexible operation enhances system profitability by more than 18% while also increasing energy storage utilization, improving reactor responsiveness to load fluctuations, and allowing for greater participation across numerous electricity markets.
Accurate solar photovoltaic (PV) capacity estimation requires high-resolution, site-specific solar irradiance data to account for localized variability. However, global datasets, such as the National Solar Radiation Database (NSRDB), provide regional averages that fail to capture the fine-scale fluctuations critical for large-scale grid integration. This limitation is particularly relevant in the context of increasing distributed energy resources (DERs) penetration, such as rooftop PV. Additionally, it is critical to the implementation of the U.S. Federal Energy Regulatory Commission (FERC) Order 2222, which facilitates DER participation in U.S. bulk power markets. To address this challenge, this study evaluates Nearest-Neighbor Random Forest (NNRF) and Nearest-Neighbor Gaussian Process (NNGP) models for spatiotemporal downscaling of global solar irradiance data. By leveraging historical irradiance and meteorological data, these models incorporate spatial, temporal, and feature-based correlations to enhance local irradiance predictions. The NNRF model, a machine-learning approach, prioritizes computational efficiency and predictive accuracy, while the NNGP model offers a level of interpretability and prediction uncertainty by numerically quantifying correlations and dependencies in the data. Model validation was conducted using day-ahead predictions. The results showed that the average Goodness of Fit (GoF) of the NNRF model of 90.61% across all eight sites outperformed the GoF of the NNGP of 85.88%. Additionally, the computational speed of NNRF was 2.5 times faster than the NNGP. Finally, the NNGP displayed polynomial scaling while the NNRF scaled linearly with increasing number of nearest neighbors. Additional validation of the model on five sites in Puerto Rico further confirmed the superiority of the NNRF model over the NNGP model. These findings highlight the robustness and computational efficiency of NNRF for large-scale solar irradiance downscaling, making it a strong candidate for improving PV capacity estimation and real-time electricity market integration for DERs.
Inverter-based distributed energy resources (DERs) connected to distribution networks (DNs) can provide fast frequency support, but their reserve deliverability depends on feeder constraints and differs from synchronous primary frequency response (PFR). Existing transmission–distribution coordination studies usually treat reserve generically or neglect feeder-level feasibility, while frequency-security scheduling studies rarely represent distribution feeders explicitly. This paper develops a bi-level day-ahead scheduling framework for integrated transmission–distribution networks that jointly clears energy, transmission-side PFR, and distribution-side fast frequency response (FFR) under exogenous hourly inertia and largest-loss inputs from an external unit commitment (UC) schedule. The transmission problem is modeled with DC-optimal power flow (OPF) and closed-form second-order cone (SOC) frequency-security constraints, whereas each DN is represented by a reserve-aware branch-flow AC-OPF so that scheduled fast reserves remain deliverable during activation. The bi-level problem is reformulated through Karush–Kuhn–Tucker (KKT) conditions into a mixed-integer SOC program, and a penalty term is used to tighten the distribution-network relaxation. In the reduced test system, lower exogenous inertia increased the required primary response from 179.64 MW to 191.08 MW, distribution-side fast response reduced total frequency-response procurement by up to 4.9%, and neglecting distribution constraints overstated the combined distribution-side energy and reserve award by up to 18%. In the expanded study, the largest case was solved in 2.02 s with a 0.00% optimality gap. Time-domain simulations kept the frequency nadir above 59.0 Hz in all tested hours. These results demonstrate the value of fast-response modeling and distribution-feasible reserve delivery in coordinated market clearing.