SMART POWER SYSTEM OPERATION UNDER UNCERTAINTY IN SHORT-TERM ELECTRICITY MARKETS

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Decision Support for Negotiations among Microgrids Using a Multiagent Architecture

Publication . Pinto, Tiago; Fotouhi Ghazvini, Mohammad Ali; Soares, João; Faia, Ricardo; Corchado, Juan; Castro, Rui; Vale, Zita

This paper presents a decision support model for negotiation portfolio optimization considering the participation of players in local markets (at the microgrid level) and in external markets, namely in regional markets, wholesale negotiations and negotiations of bilateral agreements. A local internal market model for microgrids is defined, and the connection between interconnected microgrids is based on nodal pricing to enable negotiations between nearby microgrids. The market environment considering the local market setting and the interaction between integrated microgrids is modeled using a multi-agent approach. Several multi-agent systems are used to model the electricity market environment, the interaction between small players at a microgrid scale, and to accommodate the decision support features. The integration of the proposed models in this multi-agent society and interaction between these distinct specific multi-agent systems enables modeling the system as a whole and thus testing and validating the impact of the method in the outcomes of the involved players. Results show that considering the several negotiation opportunities as complementary and making use of the most appropriate markets depending on the expected prices at each moment allows players to achieve more profitable results.

2018-09Journal article

Open access

Congestion management in active distribution networks through demand response implementation

Publication . Fotouhi Ghazvini, Mohammad Ali; Lipari, Gianluca; Pau, Marco; Ponci, Ferdinanda; Monti, Antonello; Soares, João; Castro, Rui; Vale, Zita

Despite the positive contributions of controllable electric loads such as electric vehicles (EV) and heat pumps (HP) in providing demand-side flexibility, uncoordinated operation of these loads may lead to congestions at distribution networks. This paper aims to propose a market-based mechanism to alleviate distribution network congestions through a centralized coordinated home energy management system (HEMS). In this model, the distribution system operator (DSO) implements dynamic tariffs (DT) and daily power-based network tariffs (DPT) to manage congestions induced by EVs and HPs. In this framework, the HP and EV loads are directly controlled by the retail electricity provider (REP). As DT and DPT price signals target the aggregated nodal demand, the individual uncoordinated HEMS models operating under these price signals are unable to effectively alleviate congestion. A large number of flexible residential customers with EV and HP loads are modeled in this paper, and the REP schedules the consumption based on the comfort preferences of the customers through HEMS. The effectiveness of the market-based concept in managing the congestion is demonstrated by using the IEEE 33-bus distribution system with 706 residential customers. The case study results show that considering both pricing systems can considerably mitigate the overloading occurrences in distribution lines, while applying DTs without considering DPTs may lead to severe overloading occurrences at some periods.

2019Journal article

Restricted access

Liberalization and customer behavior in the Portuguese residential retail electricity market

Publication . Fotouhi Ghazvini, Mohammad Ali; Ramos, Sérgio; Soares, João; Castro, Rui; Vale, Zita

The final step that Portugal is taking to reach a fully liberalized electricity market is the deregulation of the retail market by phasing-out regulated electricity prices and reducing the administrative burdens in this area. These attempts are done to promote the entrance of companies into the retailing business and to actively engage the end-users in the market. This analysis shows that despite high consumer switching rates during the 2013–2015 period, the retail market in Portugal is still highly concentrated. The retail rates are also not following the changes in the wholesale market price.

2019Journal article

Open access

Dynamic Pricing for Demand Response Considering Market Price Uncertainty

Publication . Fotouhi Ghazvini, Mohammad; Soares, João; Morais, Hugo; Castro, Rui; Vale, Zita

Retail energy providers (REPs) can employ different strategies such as offering demand response (DR) programs, participating in bilateral contracts, and employing self-generation distributed generation (DG) units to avoid financial losses in the volatile electricity markets. In this paper, the problem of setting dynamic retail sales price by a REP is addressed with a robust optimization technique. In the proposed model, the REP offers price-based DR programs while it faces uncertainties in the wholesale market price. The main contribution of this paper is using a robust optimization approach for setting the short-term dynamic retail rates for an asset-light REP.With this approach, the REP can decide how to participate in forward contracts and call options. They can also determine the optimal operation of the self-generation DG units. Several case studies have been carried out for a REP with 10,679 residential consumers. The deterministic approach and its robust counterpart are used to solve the problem. The results show that, with a slight decrease in the expected payoff, the REP can effectively protect itself against price variations. Offering time-variable retail rates also can increase the expected profit of the REPs.

2017-08Journal article

Open access