Distribution Network Economics Workshop – November 7-8, 2019

Electricity Distribution Network Economics:

Spatiotemporal Marginal Cost Estimation and Use in the Co-Optimization of Network, Renewable Generation and Storage-Like DERs

The Sloan Foundation and Boston University hosted the workshop on “Electricity Distribution Network Economics: Spatiotemporal Marginal Cost Estimation and Use in the Co-Optimization of Network, Renewable Generation and Storage-Like DERs” on November 7-8, 2019 at the Boston University campus – Trustees Ballroom, 1 Silber Way, 9th Floor, Boston, MA 02215.

This event was sponsored by the Sloan Foundation and the Department of Mechanical Engineering and the Center for Information and Systems Engineering (CISE) at Boston University.

Agenda Day 1 – November 7, 2019
Agenda Day 2 – November 8, 2019


Workshop Organizers:

Michael Caramanis, Professor of Mechanical Engineering (ME) and Systems Engineering (SE), Boston University
mcaraman@bu.edu

Panagiotis Andrianesis, Postdoctoral Associate (SE)
panosa@bu.edu


Workshop Times:
Thursday November 7, at 12:20pm-6:00pm
Friday November 8, at 8:00am-3:00pm


Workshop Objectives

1. Presented the findings of SLOAN Foundation supported research that focused on:

  • the development, evaluation and transfer to practice of a robust framework for developing Distribution Locational Marginal-Cost-Based Prices (DLMP) in electricity distribution networks, and
  • case studies on real distribution utility feeders that explore potential efficiencies in the production, transportation and consumption of electricity in a world of renewable distributed generation and new, flexible, storage-like consumption.

2. Brought together Academics, Practitioners and Stakeholders to provide additional perspective, response and feedback through focused individual presentations, panel presentations, commentary and discussion of invited workshop participants on – but not limited to – the following broad topics:

  • Is it possible/desirable for dynamic Distribution Locational Marginal Costs (DLMCs) to evolve to dynamic locational pricing? What are the major economic efficiency benefits of getting the marginal cost based prices right? Is full network asset revenue recovery possible? How about fairness and other issues of interest to the regulatory process?
  • T&D interface issues related to the exchange of real power, reactive power, reserves and other ancillary services. Is the current practice in reactive power compensation acceptable/efficient? Are there major limitations of short run marginal cost based compensation of these services, particularly in view of unit commitment, topology control and other integer decisions affecting smoothness and convexity considerations?
  • Are dynamic DLMC based prices practical? Can cyber/web based platforms come to the rescue of transaction management challenges?
  • Are distribution network utilities interested in exploring DLMC approaches to both Operational and Investment Planning?
  • Is technological progress likely to introduce soon enough major breakthroughs in related storage/battery, capacitor equipped smart inverters, web based platforms appropriate for e-trade that is communication and computation wise tractable and privacy respecting?
  • Risk in aggressive/conservative Renewable Energy bids to Day Ahead Markets. Day ahead bids of massive renewables – particularly wind generation with ~20% 24 hour forecast standard error – will also result in massive increase in reserve requirements. How do fixed, unit-commitment costs of centralized generation reserve provision compare to smoother cost of DER provided reserves? How should risk be internalized in day-ahead-market renewable energy bid clearing prices?

Speakers/Panelists: Pablo Ariel-Ruiz, Boston U.; Panos Andrianesis, Boston U.; Shay Bahramirad ComEd, Brian Beauregard, HG&E; Darryl Biggar, ACCC; David Blum, LBNL; Roger Bohn, UCSD; Audun Botterud, MIT; Michael Caramanis Boston U.; Fouad Dagher, National Grid; Amro Farid, Dartmouth College; Justin Foster, Appian Way; Tim Heidel, Breakthrough Energy Ventures; William Hogan, Harvard U.; Ariel Horowitz, MassCEC; Paul Joskow, MIT; P. R. Kumar, TAMU; Judith Majewski, PSEG; Mirjana Marden, ARPA-E DOE; Leslie Norford, MIT; Elli Ntakou, Quanta-Technology; Andy Ott, PJM; Stacy O’Brien, Exelon Utilities; Anthony Papavasiliou, Luvain U.; Yannis Paschalidis, Boston U.; Alex Rudkevich, NEG; Donald Sadoway, MIT; Ramteen Sioshansi, OSU; Richard Tabors, TCR; Jianhui Wang, SMU; Le Xie, TAMU; Henry Yosimura, ISONE; Umair Zia, Eversource; Donny Zimmanck, Enphase Energy.

Discussants: Ali Abur, John Baillieul, David Bianco, Christos Cassandras, Paul Centolella, Scott Englander, Alain Haurie, Hyunwook Kang, Mark LeBel, Na Li, Emily Ma, Sean Meany, Sanjoy Mitter, Phillippe Phanivong, Susan Pope, Junjie Qin, Kavita Ravi, Mardavij Roozbehani, Tim Schittekatte, Sivaranjani Seetharaman, Richard Stuebi, Ian Sue Wing, Ingo Vogelsang, Joshua Wong, Golbon Zakeri, Assef Zobian.

Selected Sloan Project Publications

– M. Caramanis, E. Ntakou , W. Hogan, A. Chakrabortty and J. Schoene, “Co-Optimization of Power and Reserves in Dynamic T&D Power Markets with Non-Dispatchable Renewable Generation and Distributed Energy Resources” The Proceedings of IEEE, Vol. 104, No. 4, pp. 807-836, DOI:10.1109/JPROC.2016.2520758, April 2016

-P. Andrianesis, M. Caramanis, R. Masiello, R. Tabors, S. Bahramirad “Locational Marginal Value of Distributed Energy Resources as Non-Wires Alternatives“ accepted to IEEE Transactions on Smart Grid, DOI: 10.1109/TSG.2019.2921205

https://ieeexplore.ieee.org/stamp/stamp.jsp?tp=&arnumber=8731686

-F. S. Yanikara, P. Andrianesis M. Caramanis, “Power Markets with Information-Aware Self-Scheduling Electric Vehicles”, accepted in Dynamic Games and Applications, August, 2019

-P. Andrianesis and M. Caramanis, “Distribution Network Marginal Costs – Part I: A Novel AC OPF Including Transformer Degradation” https://arxiv.org/abs/1906.01570

-P. Andrianesis and M. Caramanis, “Distribution Network Marginal Costs — Part II: Case Study Based Numerical Findings” https://arxiv.org/abs/1906.01572