Recent Federal Energy Regulatory Commission (FERC) Order 841 requires that Independent System Operators (ISOs) facilitate the participation of energy storage systems (ESSs) in energy, ancillary ...services, and capacity markets, by including ESS bidding parameters that represent the physical and operational characteristics. However, in the existing market frameworks that allow Battery Energy Storage Systems (BESSs) to participate, the bids and offers do not explicitly represent the physical and operational characteristics such as the state of charge (SOC), discharge rate, degradation, etc. This paper proposes a novel BESS operational cost model considering degradation cost, based on depth of discharge and discharge rate. The model is developed considering Lithium-ion batteries, and the approach can be applied to other conventional electrochemical batteries, but not flow batteries. A detailed bid/offer structure based on the proposed BESS operational cost functions is formulated. Thereafter, a new framework and mathematical model for BESS participation in an LMP based, co-optimized, energy and spinning reserve market, are developed. Three case studies are presented to investigate the impact of BESS participation on system operation and market settlement. The proposed model is validated on the IEEE Reliability Test System (RTS) to demonstrate its functionalities.
Demand Response (DR) is an important tool for Independent System Operators (ISO) for reliable operation of electricity markets, and there has been considerable interest from load-side market ...participants to offer their services for DR provisions. In this environment, the ISO needs to develop effective mathematical models for procurement of DR so as to maximize its benefits, such as reducing the peak demand, regulating electricity price shocks, and mitigating market power. In this paper, a new mathematical model for a Locational Marginal Price based, loss included, day-ahead, cooptimized, energy and spinning reserve market including DR provisions, is proposed. The proposed model includes a new proposition for load-side participants to submit price responsive demand (PRD) and load curtailment based DR bids simultaneously, in a unified market framework. Case studies considering DR providers participating in energy market only, in both energy and spinning reserve markets, and in spinning reserve market only, are presented, which examine the impact on system operation, market prices, and DR provider's benefits. The proposed model is tested on the IEEE Reliability Test System to demonstrate its functionalities and the results clearly justify the merits of simultaneous consideration of PRD bids and load curtailment based DR offers in a cooptimized energy and spinning reserve market.
In recent years, battery energy storage systems (BESS) have been considered as promising resources to provide regulation services because of their operational flexibility. In this article, a novel ...framework and mathematical model are proposed for simultaneously procuring primary regulation (PR) and secondary regulation (SR) reserves alongside energy, in a BESS integrated, locational marginal price (LMP) based real-time market. The BESS submits discharge offers considering degradation cost, based on depth of discharge and discharge rate. The proposed model takes into consideration a priori cleared day-ahead market (DAM) schedules and accounts for scenarios of load deviations and contingencies in real-time operations. The impact of BESS participation on system operation and market settlement is examined considering two participation options: 1) BESS bidding as the generator/load with price quantity pair; 2) BESS participation using the offers based on degradation cost. The proposed model is validated on the IEEE Reliability Test System to demonstrate its functionalities.
As the penetration of variable renewable generation increases in power systems, issues, such as grid stiffness, larger frequency deviations, and grid stability, are becoming more relevant, ...particularly in view of 100% renewable energy networks, which is the future of smart grids. In this context, energy storage systems (ESSs) are proving to be indispensable for facilitating the integration of renewable energy sources (RESs), are being widely deployed in both microgrids and bulk power systems, and thus will be the hallmark of the clean electrical grids of the future. Hence, this article reviews several energy storage technologies that are rapidly evolving to address the RES integration challenge, particularly compressed air energy storage (CAES), flywheels, batteries, and thermal ESSs, and their modeling and applications in power grids. An overview of these ESSs is provided, focusing on new models and applications in microgrids and distribution and transmission grids for grid operation, markets, stability, and control.
Demand Response (DR) and Battery Energy Storage Systems (BESS) are promising options for system balancing in response to uncertainties arising from high penetration of renewable energy sources (RES) ...and grid contingencies. This paper presents a novel DR and BESS integrated, locational marginal price (LMP)-based day-ahead market (DAM) framework and mathematical model. The proposed model examines the participation of DR and BESS in an energy and spinning reserve (SR) co-optimized electricity market. It includes consumer preferences in providing DR, and a BESS cost model based on depth of discharge (DOD) and discharge rate. The mathematical model, formulated as a mixed integer programming (MIP) problem, is implemented on the IEEE Reliability Test System (RTS). Several case studies demonstrate the merits of the proposed framework and their impact on marginal prices, market settlement and system operation.
Demand Response (DR) is an important tool for Independent System Operators (ISO) for reliable operation of electricity markets, and there has been considerable interest from load-side market ...participants to offer their services for DR provisions. In this environment, the ISO needs to develop effective mathematical models for procurement of DR so as to maximize its benefits, such as reducing the peak demand, regulating electricity price shocks, and mitigating market power. In this paper, a new mathematical model for a Locational Marginal Price based, loss included, day-ahead, co-optimized, energy and spinning reserve market including DR provisions, is proposed. The proposed model includes a new proposition for load-side participants to submit price responsive demand (PRD) and load curtailment based DR bids simultaneously, in a unified market framework. Case studies considering DR providers participating in energy market only, in both energy and spinning reserve markets, and in spinning reserve market only, are presented, which examine the impact on system operation, market prices, and DR provider's benefits. The proposed model is tested on the IEEE Reliability Test System to demonstrate its functionalities and the results clearly justify the merits of simultaneous consideration of PRD bids and load curtailment based DR offers in a co-optimized energy and spinning reserve market.
Recent Federal Energy Regulatory Commission (FERC) Order 841 requires that Independent System Operators (ISOs) facilitate the participation of energy storage systems (ESSs) in energy, ancillary ...services, and capacity markets, by including ESS bidding parameters that represent the physical and operational characteristics. However, in the existing market frameworks that allow Battery Energy Storage Systems (BESSs) to participate, the bids and offers do not explicitly represent the physical and operational characteristics such as the state of charge (SOC), discharge rate, degradation, etc. This paper proposes a novel BESS operational cost model considering degradation cost, based on depth of discharge and discharge rate. The model is developed considering Lithium-ion batteries, and the approach can be applied to other conventional electrochemical batteries, but not flow batteries. A detailed bid/offer structure based on the proposed BESS operational cost functions is formulated. Thereafter, a new framework and mathematical model for BESS participation in an LMP based, co-optimized, energy and spinning reserve market, are developed. Three case studies are presented to investigate the impact of BESS participation on system operation and market settlement. The proposed model is validated on the IEEE Reliability Test System (RTS) to demonstrate its functionalities.
Power systems are seeing a paradigm shift as a result of increasing system demand, penetration of distributed generation, and increasing deployment of renewable energy sources. Such developments have ...motivated Independent System Operators (ISO) to utilize options such as demand response (DR) and energy storage systems (ESS) for reliable and economic operation. In this paper, a new mathematical model is proposed for inclusion of DR and battery energy storage systems (BESS) in an uniform marginal price (UMP) based, day-ahead, co-optimized, energy and spinning reserve (SR) market. Case studies are carried out considering simultaneous participation of DR and BESS in UMP markets to examine their impact on system operation, market prices, and the benefits accrued by DR providers and BESS owners.
Demand response (DR) and energy storage systems (ESS) are important resources for Independent System Operators (ISOs) to reduce the peak demand and electricity price spikes, balance the intermittency ...of renewable energy resources (RES), and increase power system resiliency, efficiency and reliability. This paper presents a comprehensive review of the current frameworks and programs for DR and ESS to participate in some electricity markets in North America (US and Canada). The modalities of DR participation in each ISO are classified based on: (i) their mode of procurement, (ii) their participation time-frame (day-ahead or real-time) and operational domain (energy, ancillary services, or capacity), and (iii) the type of DR programs. Also, a comprehensive study of the ancillary services market structure, ESS procurement process, and deployment timeline is discussed.
Modeling the transmission sector of electricity markets is a challenge, due to issues like violation of network operating limits, information asymmetry and conflict of incentives. In this paper we ...address all these concerns via an innovative method of amalgamating the Discos into coalitions so as to cause counter-flows in lines. The complexities of transmission operation are thus modeled in a Cooperative Game Theory environment. An intuitive method based on graph theory is then proposed to identify coalition partners among Discos who should rationally cooperate, to incur the minimum overall Transmission Service Charge. The technique is illustrated using a 24 bus real power system.
