Models of Strategic Bidding in Electricity Markets Under Network Constraints

The Unit Commitment problem in energy management aims at finding the optimal production schedule of a set of generation units, while meeting various system-wide constraints. It has always been a large-scale, non-convex, difficult problem, especially in view of the fact that, due to operational requirements, it has to be solved in an unreasonably small time for its size. Recently, growing renewable energy shares have strongly increased the level of uncertainty in the system, making the (ideal) Unit Commitment model a large-scale, non-convex and uncertain (stochastic, robust, chanceconstrained) program. We provide a survey of the literature on methods for the Uncertain Unit Commitment problem, in all its variants. We start with a review of the main contributions on solution methods for the deterministic versions of the problem, focussing on those based on mathematical programming techniques that are more relevant for the uncertain versions of the problem. We then present and categorize the approaches to the latter, while providing entry points to the relevant literature on optimization under uncertainty. This is an updated version of the paper "Large-scale Unit Commitment under uncertainty: a literature survey" that appeared in 4OR 13(2), 115-171 (2015); this version has over 170 more citations, most of which appeared in the last three years, proving how fast the literature on uncertain Unit Commitment evolves, and therefore the interest in this subject.

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“…e.g. [80,85,282,425]), this requires nontrivial forecast models in order to obtain reasonable estimates of the prices (e.g. [301,381,582]).…”

Section: The Objective Functionmentioning

confidence: 99%

Large-scale unit commitment under uncertainty: an updated literature survey

Ackooij¹,

et al. 2018

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“…By construction, the electricity networks provide opportunities and constraints on the market participants to adopt strategic behaviors. Thus, game theory enables a potential framework and analytical tool to model the electricity network problems [1]. Furthermore, in the smart grid paradigm, several decision makers The associate editor coordinating the review of this manuscript and approving it for publication was Arash Asrari .…”

Section: Introductionmentioning

confidence: 99%

A Decentralized Game Theoretic Approach for Virtual Storage System Aggregation in a Residential Community

2022

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The current electricity market is better described as an oligopoly than a market of perfect competition from which, in fact, it may be rather far. The increasing penetration of residential distributed energy resources has led to a significant number of prosumers in the electricity market. Microgrid community, a group of single controllable entity prosumers, is a promising component of the smart grid which will potentially yield a free electricity market. In this paper, we present a novel formation for a residential community microgrid that includes a coalition of prosumer households with solar photovoltaic systems. These households are connected through a virtual power bank that consists of households' storage batteries and that mediates the communications between the households and the main grid. Using an application of mean field game theory, we find Nash Equilibrium strategies under which such sharing could minimize a linear combination of the households' energy generation cost, energy consumption cost and revenue of sold energy. The resulting approach is tested on a case study of a constructed community micro-grid in Montreal, Quebec, Canada. The proposed mean field game approach can help decrease the aggregated cost and the individual energy cost. A comparative analytical study on the benefit of sharing was also performed, demonstrating that each prosumer is expected to have at least a 40 percent reduction on their individual cost if belonging to a microgrid community of 100 prosumers located in Montreal city.

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Large-scale Unit Commitment under uncertainty

Ackooij²,

et al. 2015

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The Unit Commitment problem in energy management aims at finding the optimal productions schedule of a set of generation units while meeting various system-wide constraints. It has always been a large-scale, non-convex difficult problem, especially in view of the fact that operational requirements imply that it has to be solved in an unreasonably small time for its size. Recently, the ever increasing capacity for renewable generation has strongly increased the level of uncertainty in the system, making the (ideal) Unit Commitment model a large-scale, non-convex, uncertain (stochastic, robust, chance-constrained) program. We provide a survey of the literature on methods for the Uncertain Unit Commitment problem, in all its variants. We start with a review of the main contributions on solution methods for the deterministic versions of the problem, focusing on those based on mathematical programming techniques that are more relevant for the uncertain versions of the problem. We then present and categorize the approaches to the latter, also providing entry points to the relevant literature on optimization under uncertainty

show abstract

Models of Strategic Bidding in Electricity Markets Under Network Constraints

Cited by 3 publications

References 47 publications

Large-scale unit commitment under uncertainty: an updated literature survey

Large-scale unit commitment under uncertainty: an updated literature survey

A Decentralized Game Theoretic Approach for Virtual Storage System Aggregation in a Residential Community

Large-scale Unit Commitment under uncertainty

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