Locational Marginal Pricing Mechanism for Uncertainty Management Based on Improved Multi-ellipsoidal Uncertainty Set
The large-scale integration of renewable energy sources (RESs) brings huge challenges to the power system. A cost-effective reserve deployment and uncertainty pricing mechanism are critical to deal with the uncertainty and variability of RES. To this end, this paper proposes a novel locational margi...
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doaj-064389e9cf2548e685a62407f2a17d8b2021-07-30T23:01:04ZengIEEEJournal of Modern Power Systems and Clean Energy2196-54202021-01-019473475010.35833/MPCE.2020.0008249426543Locational Marginal Pricing Mechanism for Uncertainty Management Based on Improved Multi-ellipsoidal Uncertainty SetZongzheng Zhao0Yixin Liu1Li Guo2Linquan Bai3Chengshan Wang4Key Laboratory of Smart Grid of Ministry of Education, Tianjin University,Tianjin,China,300072Key Laboratory of Smart Grid of Ministry of Education, Tianjin University,Tianjin,China,300072Key Laboratory of Smart Grid of Ministry of Education, Tianjin University,Tianjin,China,300072University of North Carolina at Charlotte,Department of Systems Engineering and Engineering Management,Charlotte,NC,USA,28223Key Laboratory of Smart Grid of Ministry of Education, Tianjin University,Tianjin,China,300072The large-scale integration of renewable energy sources (RESs) brings huge challenges to the power system. A cost-effective reserve deployment and uncertainty pricing mechanism are critical to deal with the uncertainty and variability of RES. To this end, this paper proposes a novel locational marginal pricing mechanism in day-ahead market for managing uncertainties from RES. Firstly, an improved multi-ellipsoidal uncertainty set (IMEUS) considering the temporal correlation and conditional correlation of wind power forecasting is formulated to better capture the uncertainty of wind power. The dimension of each ellipsoidal subset is optimized based on a comprehensive evaluation index to reduce the invalid region without large loss of modeling accuracy, so as to reduce the conservatism. Then, an IMEUS-based robust unit commitment (RUC) model and a robust economic dispatch (RED) model are established for the day-ahead market clearing. Both the reserve cost and ramping constraints are considered in the overall dispatch process. Furthermore, based on the Langrangian function of the RED model, a new locational marginal pricing mechanism is developed. The uncertainty locational marginal price (ULMP) is introduced to charge the RES for its uncertainties and reward the generators who provide reserve to mitigate uncertainties. The new pricing mechanism can provide effective price signals to incentivize the uncertainty management in the day-ahead market. Finally, the effectiveness of the proposed mechanism is verified via numerous simulations on the PJM 5-bus system and IEEE 118-bus system.https://ieeexplore.ieee.org/document/9426543/Day-ahead marketellipsoidal uncertainty setlocational marginal pricingreserverobust unit commitment |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Zongzheng Zhao Yixin Liu Li Guo Linquan Bai Chengshan Wang |
spellingShingle |
Zongzheng Zhao Yixin Liu Li Guo Linquan Bai Chengshan Wang Locational Marginal Pricing Mechanism for Uncertainty Management Based on Improved Multi-ellipsoidal Uncertainty Set Journal of Modern Power Systems and Clean Energy Day-ahead market ellipsoidal uncertainty set locational marginal pricing reserve robust unit commitment |
author_facet |
Zongzheng Zhao Yixin Liu Li Guo Linquan Bai Chengshan Wang |
author_sort |
Zongzheng Zhao |
title |
Locational Marginal Pricing Mechanism for Uncertainty Management Based on Improved Multi-ellipsoidal Uncertainty Set |
title_short |
Locational Marginal Pricing Mechanism for Uncertainty Management Based on Improved Multi-ellipsoidal Uncertainty Set |
title_full |
Locational Marginal Pricing Mechanism for Uncertainty Management Based on Improved Multi-ellipsoidal Uncertainty Set |
title_fullStr |
Locational Marginal Pricing Mechanism for Uncertainty Management Based on Improved Multi-ellipsoidal Uncertainty Set |
title_full_unstemmed |
Locational Marginal Pricing Mechanism for Uncertainty Management Based on Improved Multi-ellipsoidal Uncertainty Set |
title_sort |
locational marginal pricing mechanism for uncertainty management based on improved multi-ellipsoidal uncertainty set |
publisher |
IEEE |
series |
Journal of Modern Power Systems and Clean Energy |
issn |
2196-5420 |
publishDate |
2021-01-01 |
description |
The large-scale integration of renewable energy sources (RESs) brings huge challenges to the power system. A cost-effective reserve deployment and uncertainty pricing mechanism are critical to deal with the uncertainty and variability of RES. To this end, this paper proposes a novel locational marginal pricing mechanism in day-ahead market for managing uncertainties from RES. Firstly, an improved multi-ellipsoidal uncertainty set (IMEUS) considering the temporal correlation and conditional correlation of wind power forecasting is formulated to better capture the uncertainty of wind power. The dimension of each ellipsoidal subset is optimized based on a comprehensive evaluation index to reduce the invalid region without large loss of modeling accuracy, so as to reduce the conservatism. Then, an IMEUS-based robust unit commitment (RUC) model and a robust economic dispatch (RED) model are established for the day-ahead market clearing. Both the reserve cost and ramping constraints are considered in the overall dispatch process. Furthermore, based on the Langrangian function of the RED model, a new locational marginal pricing mechanism is developed. The uncertainty locational marginal price (ULMP) is introduced to charge the RES for its uncertainties and reward the generators who provide reserve to mitigate uncertainties. The new pricing mechanism can provide effective price signals to incentivize the uncertainty management in the day-ahead market. Finally, the effectiveness of the proposed mechanism is verified via numerous simulations on the PJM 5-bus system and IEEE 118-bus system. |
topic |
Day-ahead market ellipsoidal uncertainty set locational marginal pricing reserve robust unit commitment |
url |
https://ieeexplore.ieee.org/document/9426543/ |
work_keys_str_mv |
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1721247202114797568 |