Title :
Provision of regulation service reserves by flexible distributed loads
Author :
Caramanis, Michael ; Paschalidis, Ioannis C. ; Cassandras, Christos ; Bilgin, Enes ; Ntakou, Elli
Author_Institution :
Center for Inf. & Syst. Eng., Boston Univ., Boston, MA, USA
Abstract :
Following our previous work on the control of multiple appliances in response to Independent System Operator (ISO) Regulation Service Signals (RSS), we model the ISO´s RSS dynamics - evolving in a time scale of seconds - as a two level Markov process whose transition probabilities are calibrated on actual data. Appliance response is modeled as a Markov modulated process consistent with an exponentially distributed time to switch off and an expected utility that is concave in the price charged when an appliance turns on. Prices are broadcasted dynamically by a Smart Building Operator (SBO) with the objective of maximizing the time average of utility gained when appliances turn on minus the cost of imperfect RSS tracking. We prove certain properties of the stochastic Dynamic Programming (DP) policies that allow us to formulate the problem as an approximate Discrete State and Control Space DP and propose a reasonable approximation that renders the problem scalable to multiple appliance categories. The discretized state DP solution can be obtained as a solution to a Linear Program (LP). The LP provides the optimal dynamic price control policies and in addition yields the requisite information needed by the SBO to bid optimally for energy and Regulation Service Reserve (RSR) Capacity in the hour ahead balancing market. Solving for the discretized real time market optimal price policies, using them to calibrate a continuous analytic policy function, and extracting from the real time optimal policies the optimal bid to the hour ahead forward balancing market is the main contribution of this paper.
Keywords :
Markov processes; approximation theory; calibration; domestic appliances; dynamic programming; government policies; linear programming; optimal control; power markets; pricing; probability; stochastic programming; ISO RSS dynamics; RSR capacity; SBO; appliance categories; approximate discrete state; approximation; continuous analytic policy function; control space DP; discretized real time market optimal price policies; flexible distributed loads; forward balancing market; imperfect RSS tracking; independent system operator regulation service signals; linear program; optimal dynamic price control policies; real time optimal policies; regulation service reserve capacity; smart building operator; stochastic DP policies; stochastic dynamic programming policies; transition probabilities; two-level Markov modulated process; Aerospace electronics; Approximation methods; Home appliances; ISO; Power markets; Real-time systems; Vehicle dynamics; Distributed Demand Management; Hour-Ahead; Real Time Market Response; Real Time Stochastic Control; Regulation Service Provision;
Conference_Titel :
Decision and Control (CDC), 2012 IEEE 51st Annual Conference on
Conference_Location :
Maui, HI
Print_ISBN :
978-1-4673-2065-8
Electronic_ISBN :
0743-1546
DOI :
10.1109/CDC.2012.6426025