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Remuneration Assessment of a VPP Providing Distribution Capacity Services
Luleå University of Technology, Department of Engineering Sciences and Mathematics, Energy Science.ORCID iD: 0000-0003-4443-7653
Luleå University of Technology, Department of Engineering Sciences and Mathematics, Energy Science.ORCID iD: 0000-0002-4004-0352
Universidad Pontificia de Comillas.
Luleå University of Technology, Department of Engineering Sciences and Mathematics, Energy Science.
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Number of Authors: 52017 (English)In: IEEE PES PowerTech Manchester 2017: towards and beyond sustainable energy systems, Piscataway, NJ: Institute of Electrical and Electronics Engineers (IEEE), 2017, article id 7980881Conference paper, Published paper (Refereed)
Abstract [en]

A Distribution System Operator (DSO) might consider a capacity contract as a planning alternative to defer grid investments. A Virtual Power Plant (VPP) might be able to provide such capacity and change its production as requested by the DSO. This article presents an assessment of the impact of this type of distribution capacity contract (DCC) on VPP's remuneration. This assessment is done by comparing the optimal production / bidding strategy which maximize its profit, under presence or absence of these contracts. The impact of intermittent generation and storage while evaluating these scenarios will be investigated as well. A stochastic unit commitment will be used to determine the VPP's strategy under uncertainties from wind power, load, market prices, and the requested power by the DSO. The model showed that the VPP involvement in distribution capacity contracts can improve its remuneration when certain types of Distributed Energy Resources (DER) are used to provide the service.

Place, publisher, year, edition, pages
Piscataway, NJ: Institute of Electrical and Electronics Engineers (IEEE), 2017. article id 7980881
National Category
Other Electrical Engineering, Electronic Engineering, Information Engineering
Research subject
Electric Power Engineering
Identifiers
URN: urn:nbn:se:ltu:diva-60776DOI: 10.1109/PTC.2017.7980881ISI: 000411142500094Scopus ID: 2-s2.0-85034752863ISBN: 978-1-5090-4237-1 (electronic)OAI: oai:DiVA.org:ltu-60776DiVA, id: diva2:1050480
Conference
12th IEEE PES PowerTech Conference, Manchester, June 18-22 2017
Available from: 2016-11-29 Created: 2016-11-29 Last updated: 2019-01-29Bibliographically approved
In thesis
1. Stochastic Planning of Smart Electricity Distribution Networks
Open this publication in new window or tab >>Stochastic Planning of Smart Electricity Distribution Networks
2017 (English)Licentiate thesis, comprehensive summary (Other academic)
Abstract [en]

The penetration of intermittent Distributed Generation (DG) brought additional uncertainty to the system operation and planning. To cope with uncertainties the Distribution System Operator (DSO) could implement several strategies. These strategies range from the inclusion of smart technologies which will increment system’s flexibility and resiliency, to improvements in forecasting, modeling, and regulatory pledge that will facilitate the planning activity. Regardless of the nature of the solutions, they could be collected in a sort of toolbox. The planner will access the toolbox to conform cost effective plans, better able to deal with any uncertainty. The present work will address the problem of distribution system planning under uncertainties, considering smart solutions along with traditional reinforcements, in the short-term lead time up to 3 years ahead. The work will be focused on three aspects that are the cornerstones of this work:

 • A planning facilitating strategy: Distribution Capacity Contracts (DCCs).

 • A flexibility enabler technology: Energy Storage.

 • A binding methodology: Multistage Stochastic Programming. Stochastic dual dynamic programming (SDDP). 

Under the present directive of the European Parliament concerning common rules for the internal market in electricity, distribution companies are not allowed to own DG but entitled to include it as a planning option to differ investment in traditional grid reinforcements. An evaluation of the regulatory context will lead this work to consider DCCs as a planning alternative available in the toolbox. The impact of this type of contract on the remuneration of the DG owner will be assessed in order to provide insight on its willingness to participate. The DCCs might aid the DSO to defer grid i ii investments during planning stages and to control the network flows during operation. 

Given that storage solutions help to match in time production from intermittent sources with load consumption, they will play a major role in dealing with uncertainties. A generic storage model (GSM) based on a future cost piecewise approximation will be developed. This model inspired by hydro-reservoirs will help assessing the impact of storage in planning decisions. This model will be tested by implementing it in short-term hydro scheduling and unit commitment studies. 

To trace a path towards the future of this research work, a discussion on the planning problem formulation, under consideration of the lead time, the expansion options, the smart strategies, and the regulatory framework will be presented. Special focus will be given to multistage stochastic programming methods and in particular to the SDDP approach.

Place, publisher, year, edition, pages
Luleå University of Technology, 2017
Series
Licentiate thesis / Luleå University of Technology, ISSN 1402-1757
National Category
Other Electrical Engineering, Electronic Engineering, Information Engineering
Research subject
Electric Power Engineering
Identifiers
urn:nbn:se:ltu:diva-60778 (URN)978-91-7583-775-8 (ISBN)978-91-7583-776-5 (ISBN)
Presentation
2017-02-10, Hörsal A, Campus Skellefteå, Skellefteå, 10:00
Supervisors
Available from: 2016-12-05 Created: 2016-11-29 Last updated: 2017-11-24Bibliographically approved
2. Distribution Network Planning Considering Capacity Mechanisms and Flexibility
Open this publication in new window or tab >>Distribution Network Planning Considering Capacity Mechanisms and Flexibility
2019 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

The increasing penetration of distributed energy resources (DERs) has posed challenges to the distribution system operator (DSO) from the operation and regulatory point of view. High penetration of DERs could have negative impacts on the performance of the distribution grid, and depending on the regulatory framework, the DSO's remuneration as well. In liberalized electrical systems, the focus on promoting eciency has led to the implementation of an incentive-based regulation that exerts additional pressure on the DSOs to reduce costs. Additionally, the European Parliament Directive 2009/72/EC establishes a regulatory unbundling among the distribution, production, and retailing activities within the same vertically integrated electric utility.

A way of helping the DSO to cope with the posed challenges is by providing it with exibility. This exibility can be acquired from the planning stage, and later be used during the system operation. This exibility can stem from the DSO's ability to exert control on the demand and the supply side to balance the system and correct its operational state.

Based on the European DSOs' current situation at facing the increasing penetration of DERs, this thesis investigates in non-wired exible grid tools to solve the distribution network expansion problem. The investigation focuses on exibility providers, in particular on energy storage systems and hydropower, and also on capacity mechanisms to translate the capacity from DERs into the grid's capacity for planning purposes.

Given that the share of renewable sources among the DERs is increasing, and considering the importance of energy storage systems in providing exibility to balance renewable energy production, the eort has been turned on to developing a hydropower model and a generic storage model that t both planning and operational studies.

Given the need for gearing the DERs' behavior into the DSO's decision making process during the planning and operational timescales, the design and implementation of a distribution capacity mechanism have been developed. The design of the capacity mechanism has been conceived considering its integration within the distribution network expansion problem.

The outcomes of this thesis can be synthesized as follows: 1) A generic hydraulic/storage model provided with an equivalent marginal cost that aids in considering the impact of present decisions in the future costs. 2) A market oriented distribution capacity mechanism that gears DERs and the DSOs to benefit mutually. 3) A distribution network expansion planning formulation that integrates the capacity resource from DERs through the distribution capacity mechanism.

Place, publisher, year, edition, pages
Luleå: Luleå University of Technology, 2019
Series
Doctoral thesis / Luleå University of Technology 1 jan 1997 → …, ISSN 1402-1544
National Category
Other Electrical Engineering, Electronic Engineering, Information Engineering
Research subject
Electric Power Engineering
Identifiers
urn:nbn:se:ltu:diva-72726 (URN)978-91-7790-308-6 (ISBN)978-91-7790-309-3 (ISBN)
Public defence
2019-04-16, Hörsal A, Forskargatan 1, Building A, Campus Skellefteå, Skellefteå, 09:00 (English)
Opponent
Supervisors
Available from: 2019-01-30 Created: 2019-01-29 Last updated: 2019-03-19Bibliographically approved

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Alvarez Perez, Manuel AlejandroRönnberg, SarahZhong, JinBollen, Math

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