Game Theoretical Approach to Novel Reactive Power Ancillary Service Market Mechanism
01 Mar 2021-IEEE Transactions on Power Systems (Institute of Electrical and Electronics Engineers (IEEE))-Vol. 36, Iss: 2, pp 1298-1308
TL;DR: In this paper, a market mechanism for real-time reactive power ancillary service market based on Stackelberg game model is proposed considering voltage-apparent power coupled subsystems.
Abstract: In deregulated power systems, reactive power ancillary service through electricity market is becoming relevant where private generation companies participate in maintaining system wide bus voltage within the permissible limits. Marginal cost price (MCP) based real time reactive power ancillary service market faces several challenges due to the localized nature of reactive power. In this paper, a market mechanism for real time reactive power ancillary service market based on Stackelberg game model is proposed considering voltage-apparent power coupled subsystems. In the proposed Stackelberg game model, Independent System Operator (ISO) is considered as the leader, and GENCOs as followers. In the formulation, each GENCO is associated with a relevance factor in the partitioned subsystem so as to consider the real time voltage support requirement in the system. The market is then formulated as Mathematical Program with Equilibrium Constraints problem (MPEC). Existence of equilibrium, incentive compatibility, and individual rationality of the proposed market mechanism is then analysed in this work. The numerical examples are illustrated in PJM 5-bus system, and tested on IEEE 30- bus system, and Nordic 32 Bus-system. The mechanism induces truth-telling behavior of GENCOs, yields a non-negative profit, and the system wide bus voltage is improved.
Citations
More filters
TL;DR: In this article , the authors provide a comprehensive overview of the characteristics and hardships of reactive power markets, focusing on market power, game theoretical approaches, Reinforcement Learning, and manipulation.
Abstract: Liberalization of the energy system sets the way towards market-based solutions for ancillary service provision. Local reactive power markets are envisioned to achieve more economically and technically efficient reactive power provision to solve voltage control problems in future distribution and transmission grids. However, market-based reactive power procurement is a difficult and yet unsolved problem. This survey provides a comprehensive overview of the characteristics and hardships of reactive power markets. That is followed by a literature overview of reactive power market design, including local markets and markets on system operator level. Further, methods how to analyse reactive power markets are discussed, focusing on market power, game theoretical approaches, Reinforcement Learning, and manipulation of reactive power markets. From this overview, trends and current research gaps are derived and some general research recommendations are given to serve as a guideline for future research in the field of reactive power markets.
20 citations
TL;DR: In this article, a thorough review of the electricity markets worldwide with solar energy is provided, and a variety of proposed mathematical solutions to the problem are also discussed, with the focus on the uncertainty-based market operations.
Abstract: With the accelerating penetration of solar energy in energy systems, market operations concerning the solar-associated intermittency are widely discussed. How to correctly model the solar generation in the market and solve the uncertainty-based operation problems call for solutions. Unlike other renewable resources, solar power can be more easily applied to the demand side through behind-the-meter installations in a distributed manner with significant future extensibility. The corresponding operational rules in the markets are largely being revised. Over the past two decades, with the development of deregulated power markets, numerous studies related to uncertainty-based market operations tend to transform the market from a deterministic and centralized framework to a stochastic and decentralized one. As the relevant literature is most recent, this paper reviews their contributions to electricity market operations with solar integration and underlines the research directions of this topic and ongoing industry practices. A thorough review of the electricity markets worldwide with solar energy is provided. A variety of proposed mathematical solutions to the problem are also discussed.
18 citations
TL;DR: In this paper , the impacts and challenges of electricity market on hydro-dominated power system operations are analyzed, and two kinds of suggestions are presented to overcome these difficulties for different market objects: hydropower enterprises are suggested to improve generation prediction level, reconstruct market-based operation rules, implement multiscale nested operations and bidding, strengthen collaborative bidding of different stakeholders, and analyze market demands and competitors.
16 citations
TL;DR: The proposed methodology has been tested on modified IEEE 30-bus and IEEE 118-bus test systems and the performance of both test systems is analyzed for two studies namely, VAr dispatch without wind integration, and V Ar dispatch under wind integration.
9 citations
TL;DR: A novel, low-cost, efficient, and user-friendly smart PQ meter that implements a novel PQ-based tariff scheme that penalizes consumers violating the PQ limits and provides incentives for a good PQ profile is presented.
Abstract: Regarding the modern power smart grid, distribution consumers and prosumers are highly concerned about power quality (PQ). In fact, they would prefer to pay higher prices for a reliable and good quality power supply. Unfortunately, utility operators still aim for reliability alone, ignoring the quality of supply voltage and current. There are no clear guidelines for monitoring, penalizing, or implementing PQ-based tariff schemes in LV distribution systems. In addition, the implementation of a PQ-based tariff requires a real-time measuring mechanism at the user end, which is very expensive and difficult to understand for a domestic consumer. This paper presents a novel, low-cost, efficient, and user-friendly smart PQ meter to overcome these issues and limitations. It is essentially a PQ analyzer with energy metering functionality, which implements a novel PQ-based tariff scheme that penalizes consumers violating the PQ limits and provides incentives for a good PQ profile. It measures as many as 28 parameters and keeps track of the PQ for both the consumer and the grid in real-time. This paper demonstrates the specifications, design, and testing of the meter and proves the validity of the concept by practical implementation. The meter is practical, feasible, and economical for implementing PQ-based tariff schemes in LV distribution systems or smart grids.
7 citations
References
More filters
TL;DR: In this paper, a theoretical approach based on marginal pricing is proposed in order to clarify the principles to remunerate the suppliers and to charge the consumers of these services, and a practical organization of reactive supply and voltage service markets is presented to be implemented in a competitive environment.
Abstract: A new electrical sector regulation is being implemented in different countries all over the world. The new regulation stresses the role of competitive markets for the procurement and remuneration of ancillary services. Among these services stand the ones associated with reactive power supply and transmission network voltage control in order to maintain the required system security levels. The object of this paper is twofold. On one hand, reactive power supply and voltage control services, which today are bundled, are decomposed in two types: (i) voltage profile management and reactive dispatch, and (ii) voltage regulation. A theoretical approach based on marginal pricing is proposed in order to clarify the principles to remunerate the suppliers and to charge the consumers of these services. On the other hand, a practical organization of reactive supply and voltage service markets is presented to be implemented in a competitive environment.
154 citations
25 Jul 2010
TL;DR: In this article, the authors present two small test systems for power system economic studies, one based on the original PJM 5-bus system and the other based on IEEE 30-bus.
Abstract: This paper presents two small test systems for power system economic studies. The first system is based on the original PJM 5-bus system, which contains data related to real power only, because it demonstrates results based on the linearized DC optimal power flow (OPF) model. This paper suggests some modification to the original data, as well as new parameters related to reactive power such that AC-model-based simulation is possible. The second system is based on the original IEEE 30-bus system, which is an AC system, but it does not have economic data such as generation costs and transmission network limits. This paper suggests some reasonable values for generation costs and transmission limits. For both systems, economic studies based on LMP methodology are given for benchmark purposes.
136 citations
"Game Theoretical Approach to Novel ..." refers methods in this paper
...In Section V-A, PJM 5-bus system [17] is considered to illustrate economic efficiency of the proposed method by comparing with locational marginal price (LMP) formulation....
[...]
TL;DR: In this article, the responses of consumers are represented as the inverse of the demand functions and power flow equations are incorporated in the constraints, which makes it possible to incorporate constant power factor demand consumer as a participant.
Abstract: This paper presents a theory and simulation results of real time pricing of real and reactive powers that maximizes social benefit. Conventional studies represented the responses of consumers as demand functions, and the objective of optimization was minimization of operating cost of power system. In this paper, the responses of consumers are represented as the inverse of the demand functions and power flow equations are incorporated in the constraints. This makes it possible to incorporate constant power factor demand consumer as a participant. That also makes it possible to maximize the objective function of optimization that is social benefit of participating in the electricity market and to determine the price of electricity at each bus. Not only the real time price of real power but also that of reactive power is determined simultaneously by the incorporation of power factor of loads into the constraint of optimization.
111 citations
"Game Theoretical Approach to Novel ..." refers background in this paper
...Real time reactive power pricing scheme that considered maximizing the benefit of customers and minimizing real power production cost was proposed in [5]....
[...]
TL;DR: It is established that the VCG mechanism always results in higher per-unit electricity prices than the LMP mechanism under any given set of reported supply curves, and the difference between the per- unit prices resulting from the two mechanisms is negligibly small.
Abstract: Being widely used in many deregulated wholesale electricity markets, the locational marginal pricing (LMP) mechanism is known to achieve social optimality in a competitive market. When profit-maximizing generators act strategically to manipulate prices; however, LMP may lead to high loss of economic efficiency. In this paper, we apply the Vickrey-Clarke–Groves (VCG) mechanism to wholesale electricity markets. We show that the VCG mechanism minimizes the total cost at a truth-telling dominant strategy equilibrium. We establish an important comparative result that the VCG mechanism always results in higher per-unit electricity prices than the LMP mechanism under any given set of reported supply curves. Numerical results show that the difference between the per-unit prices resulting from the two mechanisms is negligibly small (about 4%) in the IEEE 14-bus and 30-bus test systems. Finally, we apply the VCG mechanism to a day-ahead setting with start-up cost (of conventional generators) and intermittent renewable generation. We show that the VCG mechanism induces the truth-telling behavior of conventional generators in dominant strategies and yields each conventional generator a non-negative expected profit.
85 citations
"Game Theoretical Approach to Novel ..." refers background in this paper
...Even for real power markets, locational marginal price based market is found to be less economically efficient due to market power [2]....
[...]
Journal Article•
TL;DR: In this paper, a new NCP-function is introduced that reformulates a nonlinear com-plementarity problem as a system of semismooth equations (x) = 0.
Abstract: We introduce a new NCP-function that reformulates a nonlinear com-plementarity problem as a system of semismooth equations (x) = 0. The new NCP-function possesses all the nice properties of the Fischer-Burmeister function for local convergence. In addition, its natural merit function (x) = 1 2 (x) T (x) has all the nice features of the Kanzow-Yamashita-Fukushima merit function for global convergence. In particular, the merit function has bounded level sets for a monotone complementarity problem with a strictly feasible point. This property allows the existing semismooth Newton methods to solve this important class of comple-mentarity problems without additional assumptions. We investigate the properties of a semismooth Newton-type method based on the new NCP-function and apply the method to a large class of complementarity problems. The numerical results indicate that the new algorithm is extremely promising.
64 citations
"Game Theoretical Approach to Novel ..." refers methods in this paper
...In this work, smoothing technique using FischerBurmeister function [14] is applied to Equations (B....
[...]