Energy Imbalance Management Using a Robust Pricing Scheme

Abstract

This paper focuses on the problem of energy imbalance management in amicrogrid. The problem is investigated from the power market perspective. Unlike the traditional power grid, a microgrid can obtain extra energy froma renewable energy source (RES) such as a solar panel or a wind turbine. However, the stochastic input from the RES brings difficulty in balancing the energy supply and demand. In this study, a novel pricing scheme is proposed that provides robustness against such intermittent power input. The proposed scheme considers possible uncertainty in the marginal benefit and the marginal cost of the power market. It uses all available information on the power supply, power demand, and imbalanced energy. The parameters of the scheme are evaluated using an performance index. It is shown that the parameters can be obtained by solving a linear matrix inequality problem, which is efficiently solvable due to its convexity. Simulation examples are given to show the favorable performance of the proposed scheme in comparison with existing area control error pricing schemes.Comment: 9 pages, 3 figure

A Hybrid Genetic Wind Driven Heuristic Optimization Algorithm for Demand Side Management in Smart Grid

“…They explain different components of the data centers as information technology equipment, the power delivery system and the cooling system in relationship with the SG's features (power delivery, sustainability, peak shaving, etc.). A multi-objective optimization solution is designed using the market operator and the distributed network operator for a microgrid in [40]. The generation of the price signal from the market operator and the power distribution system is specified using the Pareto-optimal solution.…”

An integrated dynamic pricing scheme for improving the smartness of off grid distributed generation

“…The origin of the concept of using electricity prices in controlling power systems is reported in [18] while [19] highlights the importance of price as a key element of energy market behaviour and its close relationship to load control, energy management and consumption. With the rapid development in demand response (DR), DP has been considered as a viable approach in facilitating the integration of demand side with electricity markets [20,21].…”

“…With the rapid development in demand response (DR), DP has been considered as a viable approach in facilitating the integration of demand side with electricity markets [20,21]. The area controller error (ACE) pricing scheme was extended by [19] where a pricing scheme that is robust against fluctuating power input was proposed while [21] also incorporated robustness against the uncertainties in renewable resources and price in arriving at scalable solutions. Three main kinds of rate structures of time varying prices were posited by [22] and further posited was the fact that the diffusion of DR was still low.…”

“…The effect of dynamic pricing on consumers comfort was also studied in [23] where a dynamic demand response controller (DDRC) which adjusts set-point temperature to control HVAC loads in response to varying electricity retail price published every 15 minutes was proposed. The reasons for the application of DP vary from achieving a balance in power to managing energy markets and controlling loads [19,24]. However, most of the schemes proposed require the broadcast of prices in near real time necessitating users to react to price changes instantly or through the use of smart devices that respond to price changes.…”

A layered approach for enabling demand side management in smart grid

“…Two types of DSM programs are often considered: incentive-based program (IBP) and price-based program (PBP) [9] [10]. An IBP directly provides rewards to consumers, while a PBP indirectly uses the price signals to adjust consumers' power consumption.…”