Planning the exploitation of scattered production resources, storage devices and consumption side management solutions in a competitive environment

Master's Thesis in Electrical Engineering. M.Sc

Trend: Power

Abstract:

In recent years, two major developments have occurred in power systems. One of these changes is related to the restructuring of the electricity industry and the transformation of the traditional centralized environment into a decentralized one. Another development is in the field of expanding the use of distributed production resources, especially renewable resources in the electricity industry. The important point is that in a competitive environment, investors will not invest in these resources without adopting appropriate solutions. The main reason for this problem is the high uncertainty in the production capacity of renewable resources, the high investment cost of these resources, as well as the uncertainty in the policies supporting these resources. In this thesis, the simultaneous exploitation of distributed renewable generation resources has been done along with energy storage and taking into account consumption management solutions. Electric vehicles that can be connected to the grid are one of the types of storage that have been talked about in recent years in the studies of competitive power systems and smart power networks, and various works have been done in this field. In this thesis, the effect of these sources, i.e. the cars, has been considered. In general, electric vehicles with the ability to connect to the grid are vehicles that have the ability to connect to the power grid at certain defined points and in this way can participate in the exchange of electric power with the power grid. The necessary technical and telecommunication infrastructures must be provided for the optimal use of these vehicles. These cars have the ability to be charged in some hours and discharged in other hours. Therefore, these cars can be used in a cooperative game along with wind resources. In addition, considering that in the smart power system, in addition to the sources on the production side, the sources on the consumption side also have the ability to participate in the electricity market and contribute to the settlement of the market price, so the effect of consumption management solutions is also considered in this thesis. To implement this solution, the load of the subscribers is considered elastic and the load is a linear function of the price of electricity.

Key words: distributed wind generation sources, operation planning, electric vehicles that can be connected to the grid, consumption management solutions

Overview

The main goal of the operation planning problem in the traditional structure of the electricity industry management is to minimize the planning and operation costs by considering a defined level of reliability. In traditional environments with a centralized structure, most of the long-term operation planning models were based on optimization methods or multi-criteria trade-off risk analysis methods. These methods were useful and appropriate methods; Because planning was done in a centralized manner and with less uncertainties [1, 2]. The only uncertainties that existed were related to fuel prices, load conditions and production of some production sources such as hydropower plants. But what made most of the countries of the world inclined to revise the theories of the natural monopoly of the electricity industry was the oil crises of the 70s[3]. After that, the governments faced the undeniable fact that the monopoly of the electricity industry in the hands of the government creates financial resources for investment in infrastructure to respond to the growth of electric energy consumption.

Restructuring in the electricity industry, in addition to changing the goals and limitations governing the operation of the power system, It has also revolutionized exploitation planning [4-10]. In order to enter the competitive markets, electricity producers and private sector investors must formulate their strategies based on economic and environmental considerations in view of the many uncertainties that prevail in the economic system. In this structure, traditional planning methods were the answer, because the actors made their investment decisions in an unstable environment [11-12]. Regarding the developments in the power system and entering the competitive arena, two main factors and drivers can be mentioned; One is the trend towards cost efficiency and more emphasis on creating a competitive environment, and the other is the awareness of the society and the government about the environmental consequences caused by the increase in energy consumption in the world.The increase in environmental concerns has also led to the establishment of regulations in order to control the pollution caused by electricity production by power plants. Providing the basis for the business of electricity generation license by renewable energy and pollution tax are examples of these regulations. While the first stimulus, which emphasizes more on creating a competitive environment in the market and makes the operation planning problem more complicated, the second stimulus, i.e., environmental concerns, has also added other regulations to the system, which itself can lead to an increase in uncertainties in the problem of production operation planning [13]. From the point of view of the legislator of the system, whose most important mission is to establish a stable market in the long term. For this purpose, while targeting the important indicators of market stability, it is necessary to plan operation with the aim of optimizing social well-being, optimal reliability, considering environmental issues and issues, and establishing supportive and encouraging regulations for investment in this sector and guidance of production companies for development by the legislator. In addition, despite the various uncertainties and the high cost of investment and the irreversibility of decision-making in this area, reliable approaches and frameworks should be used to achieve long-term and medium-term goals in controlling the power system and electricity market [12]. put on their agenda in the long term. Having a market share and the optimal combination of owned production technologies are among the most important goals of large production companies in electricity markets. In the discussion of operational planning in the competitive environment that is considered in this thesis, there are several very important points:

Considering different types of resources

Agreement between criteria that overlap and are not compatible.

Effecting various types of uncertainty factors

Predicting future conditions through an effective method

Considering a planning process that also takes uncertainties into account for operational planning It is a very essential resource. Regarding the diversity of resources, in this thesis traditional resources are considered along with wind resources, energy storages along with the implementation of consumption management solutions.

For this purpose, it is necessary for production companies to plan exploitation based on achieving medium and long-term goals. Despite the many limitations and uncertainties that production companies face in the short and long term, providing powerful frameworks and methods for planning the operation of the essential needs of the power system.

Predicted load uncertainties, the fuel price of production units, and the strategic uncertainty of competitors are among the important issues that actors face in operation planning. As stated, the strategic uncertainty of actors is very important; Because price fluctuations caused by the strategic behavior of market players in the medium term have a significant effect on the operating profits of these companies. Therefore, it is necessary to use appropriate methods to model these uncertainties in operation planning.

In this thesis, which aims to plan the operation of scattered production resources, storages and consumption management solutions in a competitive environment, resources that, while being new and modern technology in the power system, should be considered, create interesting discussions from an academic and scientific point of view. One of these resources is renewable resources, among renewable resources, wind resources are more important in terms of technology growth and competitiveness with traditional resources. By considering wind resources due to the importance of environmental issues and due to the uncertainty in the production of these resources and the lack of comprehensive support policies, the risk of exploitation planning increases. For this purpose, along with these sources, energy storages have also been used. Grid-connected electric vehicles are one of the types of storage devices that have been talked about in recent years in the studies of competitive power systems and smart power networks, and various works have been done in this field.