Operation of Modern Distribution Power Systems in Competitive Electricity Markets

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Abstract

In this dissertation, the characteristics of a distribution system under a dynamic electricity-pricing, load management system and under a large number of power electronic interfaced distributed generation units are investigated. The operation characteristics of a power system with wind turbines, DG units, loads and electricity price are studied. Further, the effect of energy storage systems will be considered, and an optimal operation strategy for energy storage devices in a large scale wind power system in the electricity market is proposed.
The western Danish power system, which has large penetrations of variable wind power production and may represent the future electricity markets in some ways, is chosen as the studied power system. 10 year actual data from the Danish competitive electricity market are collected and analyzed. The relationship among the electricity price, the consumption and the wind power generation in an electricity market is investigated. The formulation of an imbalance cost minimization problem for trading wind power in the Danish short-term electricity market is then described. Stochastic optimization and a Monte Carlo method are proposed to find the optimal bidding strategy for trading wind power in the Danish short-term electricity market in order to minimize the imbalance costs for regulation.
A load optimization method based on spot price for demand side management in Denmark is proposed in order to save the energy costs for 3 types of typical Danish consumers as much as possible. The load optimization to spot price generates different load profiles and reduces the load peaks. These kinds of load patterns have significant effects on power system constraints. A method of achieving power loss minimization in distribution systems by using optimal load response to the electricity price is proposed. A fuzzy adaptive particle swarm optimization (FAPSO) is presented as a tool for the power loss minimization study. Simulation results show that the proposed approach is an effective measure to achieve power loss minimization in distribution systems. Then, three different cases are studied to solve power system constraints, improve power system small signal stability and power system transient stability by deciding an appropriate electricity price.
An optimal operation strategy for a battery energy storage system (BESS) in relation to the electricity price in order to achieve maximum profit of the BESS is proposed. Two kinds of BESS, based on polysulfide-bromine (PSB) and vanadium redox (VRB) battery technologies, are studied. Optimal operation strategies of PEV in the spot market are then proposed in order to decrease the energy cost for PEV owners. Furthermore, the application of battery storage based on aggregated PEVs is analyzed as a regulation service provider in power systems with high wind power penetrations. The economic benefits of PEVs in both spot market and regulating market are also estimated. Finally, the impacts of different PEV charging/discharging strategies on the spot market price and the interaction between the electricity price and the system demand are presented and discussed.
Original languageEnglish
PublisherDepartment of Energy Technology, Aalborg University
Number of pages182
ISBN (Print)978-87-92846-15-0
Publication statusPublished - 2012

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Wind power
Electricity
Energy storage
Costs
Polysulfides
Bromine
Distributed power generation
Power markets
Power electronics
Vanadium
Wind turbines
Particle swarm optimization (PSO)
Power generation
Profitability
Monte Carlo methods
Plug-in electric vehicles
Economics

Cite this

Hu, W. (2012). Operation of Modern Distribution Power Systems in Competitive Electricity Markets. Department of Energy Technology, Aalborg University.
Hu, Weihao. / Operation of Modern Distribution Power Systems in Competitive Electricity Markets. Department of Energy Technology, Aalborg University, 2012. 182 p.
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abstract = "In this dissertation, the characteristics of a distribution system under a dynamic electricity-pricing, load management system and under a large number of power electronic interfaced distributed generation units are investigated. The operation characteristics of a power system with wind turbines, DG units, loads and electricity price are studied. Further, the effect of energy storage systems will be considered, and an optimal operation strategy for energy storage devices in a large scale wind power system in the electricity market is proposed. The western Danish power system, which has large penetrations of variable wind power production and may represent the future electricity markets in some ways, is chosen as the studied power system. 10 year actual data from the Danish competitive electricity market are collected and analyzed. The relationship among the electricity price, the consumption and the wind power generation in an electricity market is investigated. The formulation of an imbalance cost minimization problem for trading wind power in the Danish short-term electricity market is then described. Stochastic optimization and a Monte Carlo method are proposed to find the optimal bidding strategy for trading wind power in the Danish short-term electricity market in order to minimize the imbalance costs for regulation.A load optimization method based on spot price for demand side management in Denmark is proposed in order to save the energy costs for 3 types of typical Danish consumers as much as possible. The load optimization to spot price generates different load profiles and reduces the load peaks. These kinds of load patterns have significant effects on power system constraints. A method of achieving power loss minimization in distribution systems by using optimal load response to the electricity price is proposed. A fuzzy adaptive particle swarm optimization (FAPSO) is presented as a tool for the power loss minimization study. Simulation results show that the proposed approach is an effective measure to achieve power loss minimization in distribution systems. Then, three different cases are studied to solve power system constraints, improve power system small signal stability and power system transient stability by deciding an appropriate electricity price.An optimal operation strategy for a battery energy storage system (BESS) in relation to the electricity price in order to achieve maximum profit of the BESS is proposed. Two kinds of BESS, based on polysulfide-bromine (PSB) and vanadium redox (VRB) battery technologies, are studied. Optimal operation strategies of PEV in the spot market are then proposed in order to decrease the energy cost for PEV owners. Furthermore, the application of battery storage based on aggregated PEVs is analyzed as a regulation service provider in power systems with high wind power penetrations. The economic benefits of PEVs in both spot market and regulating market are also estimated. Finally, the impacts of different PEV charging/discharging strategies on the spot market price and the interaction between the electricity price and the system demand are presented and discussed.",
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Hu, W 2012, Operation of Modern Distribution Power Systems in Competitive Electricity Markets. Department of Energy Technology, Aalborg University.

Operation of Modern Distribution Power Systems in Competitive Electricity Markets. / Hu, Weihao.

Department of Energy Technology, Aalborg University, 2012. 182 p.

Research output: Book/ReportPh.D. thesisResearch

TY - BOOK

T1 - Operation of Modern Distribution Power Systems in Competitive Electricity Markets

AU - Hu, Weihao

PY - 2012

Y1 - 2012

N2 - In this dissertation, the characteristics of a distribution system under a dynamic electricity-pricing, load management system and under a large number of power electronic interfaced distributed generation units are investigated. The operation characteristics of a power system with wind turbines, DG units, loads and electricity price are studied. Further, the effect of energy storage systems will be considered, and an optimal operation strategy for energy storage devices in a large scale wind power system in the electricity market is proposed. The western Danish power system, which has large penetrations of variable wind power production and may represent the future electricity markets in some ways, is chosen as the studied power system. 10 year actual data from the Danish competitive electricity market are collected and analyzed. The relationship among the electricity price, the consumption and the wind power generation in an electricity market is investigated. The formulation of an imbalance cost minimization problem for trading wind power in the Danish short-term electricity market is then described. Stochastic optimization and a Monte Carlo method are proposed to find the optimal bidding strategy for trading wind power in the Danish short-term electricity market in order to minimize the imbalance costs for regulation.A load optimization method based on spot price for demand side management in Denmark is proposed in order to save the energy costs for 3 types of typical Danish consumers as much as possible. The load optimization to spot price generates different load profiles and reduces the load peaks. These kinds of load patterns have significant effects on power system constraints. A method of achieving power loss minimization in distribution systems by using optimal load response to the electricity price is proposed. A fuzzy adaptive particle swarm optimization (FAPSO) is presented as a tool for the power loss minimization study. Simulation results show that the proposed approach is an effective measure to achieve power loss minimization in distribution systems. Then, three different cases are studied to solve power system constraints, improve power system small signal stability and power system transient stability by deciding an appropriate electricity price.An optimal operation strategy for a battery energy storage system (BESS) in relation to the electricity price in order to achieve maximum profit of the BESS is proposed. Two kinds of BESS, based on polysulfide-bromine (PSB) and vanadium redox (VRB) battery technologies, are studied. Optimal operation strategies of PEV in the spot market are then proposed in order to decrease the energy cost for PEV owners. Furthermore, the application of battery storage based on aggregated PEVs is analyzed as a regulation service provider in power systems with high wind power penetrations. The economic benefits of PEVs in both spot market and regulating market are also estimated. Finally, the impacts of different PEV charging/discharging strategies on the spot market price and the interaction between the electricity price and the system demand are presented and discussed.

AB - In this dissertation, the characteristics of a distribution system under a dynamic electricity-pricing, load management system and under a large number of power electronic interfaced distributed generation units are investigated. The operation characteristics of a power system with wind turbines, DG units, loads and electricity price are studied. Further, the effect of energy storage systems will be considered, and an optimal operation strategy for energy storage devices in a large scale wind power system in the electricity market is proposed. The western Danish power system, which has large penetrations of variable wind power production and may represent the future electricity markets in some ways, is chosen as the studied power system. 10 year actual data from the Danish competitive electricity market are collected and analyzed. The relationship among the electricity price, the consumption and the wind power generation in an electricity market is investigated. The formulation of an imbalance cost minimization problem for trading wind power in the Danish short-term electricity market is then described. Stochastic optimization and a Monte Carlo method are proposed to find the optimal bidding strategy for trading wind power in the Danish short-term electricity market in order to minimize the imbalance costs for regulation.A load optimization method based on spot price for demand side management in Denmark is proposed in order to save the energy costs for 3 types of typical Danish consumers as much as possible. The load optimization to spot price generates different load profiles and reduces the load peaks. These kinds of load patterns have significant effects on power system constraints. A method of achieving power loss minimization in distribution systems by using optimal load response to the electricity price is proposed. A fuzzy adaptive particle swarm optimization (FAPSO) is presented as a tool for the power loss minimization study. Simulation results show that the proposed approach is an effective measure to achieve power loss minimization in distribution systems. Then, three different cases are studied to solve power system constraints, improve power system small signal stability and power system transient stability by deciding an appropriate electricity price.An optimal operation strategy for a battery energy storage system (BESS) in relation to the electricity price in order to achieve maximum profit of the BESS is proposed. Two kinds of BESS, based on polysulfide-bromine (PSB) and vanadium redox (VRB) battery technologies, are studied. Optimal operation strategies of PEV in the spot market are then proposed in order to decrease the energy cost for PEV owners. Furthermore, the application of battery storage based on aggregated PEVs is analyzed as a regulation service provider in power systems with high wind power penetrations. The economic benefits of PEVs in both spot market and regulating market are also estimated. Finally, the impacts of different PEV charging/discharging strategies on the spot market price and the interaction between the electricity price and the system demand are presented and discussed.

M3 - Ph.D. thesis

SN - 978-87-92846-15-0

BT - Operation of Modern Distribution Power Systems in Competitive Electricity Markets

PB - Department of Energy Technology, Aalborg University

ER -

Hu W. Operation of Modern Distribution Power Systems in Competitive Electricity Markets. Department of Energy Technology, Aalborg University, 2012. 182 p.