The Impact of Wind Generation on Operating Cost and Profit in a Bilevel Optimization Dispatch Model
Keywords:
Economic Dispatch, Wind Generation, Deterministic, Stochastic, Bilevel OptimizationAbstract
In this paper, the problem of economic dispatch of energy of an electrical system is solved, based on three different approaches: first is deterministic, a second is stochastic and a third given by bilevel programming. It is observed that when solving the deterministic economic energy dispatch, results follow the principle of order of merit, likewise under some scenarios availability of a large flexible capacity during the power balance stage becomes necessary. In another hand, the stochastic model becomes a tool that optimizes flexible capacity by sacrificing the order of merit which is not the case of bilevel model that adopts both, order of merit and optimization of flexible capacity by choosing an optimum of wind power to dispatch. In terms of profit, it has been observed that under the stochastic approach those flexible participants must fall into losses under certain scenarios. However, under the bilevel approach, the aforementioned issue is improved. Finally and in order to illustrate the impact of the bilevel approach a 24-node system serves as a test system to obtain results and demonstrate the economic advantages of an bilevel dispatch.
Downloads
References
J. DeCesaro, K. Porter, and M. Milligan, “Wind energy and power system operations: A review of wind integration studies to date,” The Electricity Journal, vol. 22, no. 10, pp. 34 – 43, 2009.
H. Holttinen, “Impact of hourly wind power variations on the system operation in the nordic countries,” Wind Energy: An International Journal for Progress and Applications in Wind Power Conversion Technology, vol. 8, no. 2, pp. 197–218, 2005.
G. Pritchard, G. Zakeri, and A. Philpott, “A single-settlement, energy-only electric power market for unpredictable and intermittent participants,” Operations Research, vol. 58, no. 4-part-2, pp. 1210–1219, 2010.
S. Pineda and J. M. Morales, “Capacity expansion of stochastic power generation under two-stage electricity markets,” Computers and Operations Research, vol. 70, pp. 101–114, 2016.
M. Bjørndal, E. Bjørndal, K. Midthun, and A. Tomasgard, “Stochastic electricity dispatch: A challenge for market design,” Energy, vol. 150, pp. 992–1005, 2018.
J. M. Morales, M. Zugno, S. Pineda, and P. Pinson, “Electricity market clearing with improved scheduling of stochastic production,” European Journal of Operational Research, vol. 235, no. 3, pp. 765–774, 2014.
A. J. Wood, B. F. Wollenberg, and G. B. Sheblé, Power generation, operation, and control. John Wiley & Sons, 2013.
A. J. Conejo and L. Baringo, Power System Operations. Springer 2018.
D. Gan, D. Feng, and J. Xie, Electricity markets and power system economics. CRC Press, 2013.
J. M. Morales, A. J. Conejo, H. Madsen, P. Pinson, and M. Zugno, Integrating Renewables in Electricity Markets: Operational Problems, vol. 205. Boston: Springer, 2014.
G. Rothwell and T. Gómez, Electricity economics. Wiley-IEEE Press, 2003.
J. R. Birge and F. Louveaux, Introduction to Stochastic Programming. Springer New York, 2011.
A. Shapiro and A. Shapiro, “Stochastic programming approach to optimization under uncertainty,” Mathematical programming, vol. 112, no. 1, pp. 183–220, 2008.
V. M. Zavala, K. Kim, M. Anitescu, and J. Birge, “A stochastic electricity market clearing formulation with consistent pricing properties,” Operations Research, vol. 65, no. 3, pp. 557–576, 2017.
S. Dempe, Foundations of bilevel programming. Springer Science & Business Media, 2002.
J. F. Bard, Practical bilevel optimization: algorithms and applications, vol. 30. Springer Science & Business Media, 2013.
S. A. Gabriel, A. J. Conejo, J. D. Fuller, B. F. Hobbs, and C. Ruiz, Complementarity modeling in energy markets, vol. 180. Springer Science & Business Media, 2012.
E. K. Chong and S. H. Zak, An introduction to optimization. John Wiley & Sons, 2004.
“Mathwave, data analysis and simulation.”http://www.mathwave.com/es/home.html, 2020.
V. Thapar, G. Agnihotri, and V. K. Sethi, “Critical analysis of methods for mathematical modelling of wind turbines,” Renewable Energy, vol. 36, no. 11, pp. 3166 – 3177, 2011.
“HOMER Pro.” http://www.homerenergy.com, 2020.
C. Ordoudis, P. Pinson, J. Morales, and M. Zugno, “IEEE RTS 24- bus system for electricity market and power system operation studies,” Technical University of Denmark, vol. 1, no. 1, pp. 1–5, 2016.