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Transactive Energy: Architecture and Methods for Combined Power Markets and Controls CIGRÉ USNC UOTF 2013 Paul De Martini 10.21.13 [email protected]

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Page 1: De Martini - CIGRE USNC  Oct 21, 2013

Transactive Energy: Architecture and Methods for Combined Power Markets and ControlsCIGRÉ USNC UOTF 2013

Paul De Martini10.21.13

[email protected]

Page 2: De Martini - CIGRE USNC  Oct 21, 2013

2

DER will reach 30% of Installed US Capacity by 2020

Effectively all incremental growth in capacity will come from customers

30% Backup Generation: 225 GWCHP: 122 GWDemand Response: 90 GWSolar PV: 50 GWOther DG: 25 GWDist. Storage: 3 GW

Potential DER Total: 515 GW

Page 3: De Martini - CIGRE USNC  Oct 21, 2013

3

Operational Challenges

Changes to Net Load Curves and Real-time Dispatch Needs

Distribution Voltage and Power Quality Impacts

Multi-directional power flow at scale

Policy enabled customer participation in market and grid operational services

Page 4: De Martini - CIGRE USNC  Oct 21, 2013

4

Changing Bulk System Operations

Wind & Solar PV and Customer Load Optimization changing operating conditions –Role for flexible DER?

14 GW Ramp in ~3 hours

Page 5: De Martini - CIGRE USNC  Oct 21, 2013

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-

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

0:00

1:25

2:50

4:15

5:40

7:05

8:30

9:55

11:2

0

12:4

5

14:1

0

15:3

5

17:0

0

18:2

5

19:5

0

21:1

5

22:4

0

kW

Time

Sunny DayLoad PV kW Sunny Net Load Sunny

0.880 0.900 0.920 0.940 0.960 0.980 1.000 1.020 1.040 1.060

0:00

1:20

2:40

4:00

5:20

6:40

8:00

9:20

10:4

0

12:0

0

13:2

0

14:4

0

16:0

0

17:2

0

18:4

0

20:0

0

21:2

0

22:4

0

0:00

Vo

ltag

e (p

u)

Time

Volt No PV Volt Sunny

-

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

0:00

1:20

2:40

4:00

5:20

6:40

8:00

9:20

10:4

0

12:0

0

13:2

0

14:4

0

16:0

0

17:2

0

18:4

0

20:0

0

21:2

0

22:4

0

0:00

kWTime

Cloudy DayLoad PV kW Cloudy Net Load Cloudy

0.880 0.900 0.920 0.940 0.960 0.980 1.000 1.020 1.040 1.060

0:00

1:15

2:30

3:45

5:00

6:15

7:30

8:45

10:0

0

11:1

5

12:3

0

13:4

5

15:0

0

16:1

5

17:3

0

18:4

5

20:0

0

21:1

5

22:3

0

23:4

5

Vo

ltag

e (p

u)

Time

Volt No PV Volt Cloudy

Source: OATI, used by permission

Solar PV Impact on Distribution Feeders

Distribution Power Quality Impacts

Page 6: De Martini - CIGRE USNC  Oct 21, 2013

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Operational Evolution: 1978-2001Multi-directional Power Flow

Need for local balancing & distributed markets to integrate customer DER?

6

Page 7: De Martini - CIGRE USNC  Oct 21, 2013

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Operational Decision & Response Times Collapsing

Increased Variability Requiring More Dynamic Operations on Shorter Time Cycles

Page 8: De Martini - CIGRE USNC  Oct 21, 2013

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Evolution of Flexible DER Response

Page 9: De Martini - CIGRE USNC  Oct 21, 2013

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Responsive Distributed Energy Resource Values

Page 10: De Martini - CIGRE USNC  Oct 21, 2013

10

Multiple DER Constituents

Market & control systems must be able to reconcile multi-party objectives & constraints related to the same distributed resource

Bulk Power

System

Distribution

Operations

Customer

Energy

Provider

Energy

Related

Services

Energy

Devices

Energy

Financial

Services

Objectives & Goals

Decision Criteria & Processes

Constraints

Value Perception

Economic Utility

Willingness & Ability

Page 11: De Martini - CIGRE USNC  Oct 21, 2013

11

Challenge: Market Structures that Align w/Operational Controls

Current market designs may act as a control element in a feedback control loop, whether intended or not. This loop could be closed around a substantial portion of the power delivery system, including multiple operational tiers as illustrated. Feedback of state variable (not system outputs) causes the equilibrium price to move so as to re-establish the balance between supply and demand, and moves in the equilibrium price cause changes in available generation, DR and DER.

Page 12: De Martini - CIGRE USNC  Oct 21, 2013

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Transactive Energy = Economics + Controls

Operational Optimization with pervasive DER requires more than market efficiency – it requires joint optimization with real-time operational controls across Bulk power system & Distribution

Page 13: De Martini - CIGRE USNC  Oct 21, 2013

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Distributed Controls Across 3 Layers

Need Coordinated Optimization at Each Layer

Page 14: De Martini - CIGRE USNC  Oct 21, 2013

14

Laminar Control + Network Utility Maximization

Structured network of optimization

nodes communicates hierarchically via

scalar signals to cooperate in solving a

joint optimal control problem.

Node tree starts at the balancing

authority and spans transmission,

distribution, and even prosumer

elements if needed.

Layered decomposition can be mapped

onto the structure of the power grid to

solve the control issues of federation,

disaggregation, and constraint fusion

while allowing for local “selfish”

optimization.

Page 15: De Martini - CIGRE USNC  Oct 21, 2013

15

Evolution of DER Operational Integration

2005 2010 2015 2020 2025+

Page 16: De Martini - CIGRE USNC  Oct 21, 2013

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Example: ConEdison ARRA Demo Project

Page 17: De Martini - CIGRE USNC  Oct 21, 2013

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Example: CPS Energy Residential VPP

H2G Virtual Power Plant

Page 18: De Martini - CIGRE USNC  Oct 21, 2013

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Example: Enbala’s Multi-Optimization Laminar Control System for DER

Page 19: De Martini - CIGRE USNC  Oct 21, 2013

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Future of Customer Response

Potential exists to leverage customer’s flexible DER including responsive demand, DG, storage, EVs and inverters to mutual benefit. Challenge is aligning operational needs, customers willingness with a compelling economic value proposition.

Page 20: De Martini - CIGRE USNC  Oct 21, 2013

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Transactive Energy: Engineering-Economic Based Operational Controls

“Transactive Energy is the ability of customers and others, using value driven control systems, to optimize their use and sale of electric services to markets and grid operators to enhance economic efficiency and reliability.”

Addresses need for reconciliation of converging multi-party business and operational objectives and constraints

Not just markets, but also a broader integrated cyber-physical control system to ensure reliable electric services

Transactive Energy

Markets

T&D Grid Operations

Customer