Dionysios Aliprantis, Scott Penick, Leigh Tesfatsion, Huan Zhao
Our research team is developing an agent-based test bed for the integrated study of retail and wholesale power markets operating over transmission and distribution networks with smart-grid functionality. This test bed seams together two existing test beds, the AMES Wholesale Power Market Test Bed and the GridLAB-D distribution platform. As a first step, we have designed an integrated retail/wholesale market module specifically based on the ERCOT (Texas) energy region, and we are using simplified versions of this module to study potential retail consumer response to real-time-pricing contracts supported by advanced metering. This study reports on the latter work.
Smart grid technologies in combination with the methodological foundation laid by the economic theory of Priority Service, enable the conversion of electric service reliability from a public good to a private good. Such a transformation is achieved by offering electricity service as a product line differentiated according to service reliability from which customers can self-select the level of reliability that fits their needs and pocketbook. This conceptual paradigm is illustrated through a specific proposal for a multilevel Emergency Interruptable Load Response Service (EILS) program at ERCOT.
Horst F. Wedde, Sebastian Lehnhoff, Christian Rehtanz, Olav Krause
In the DEZENT project we had established a distributed base model for negotiating electric power from widely distributed (renewable) power sources on multiple levels in succession. Negotiation strategies would be intelligently adjusted by the agents, through (distributed) reinforcement learning procedures. The distribution of the negotiated power quantities (under distributed control as well) occurs such that the grid stability is guaranteed, under 0.5 sec. The major objective in this paper was to deal, on the same level of granularity, with short-term power balance fluctuation, in terms of a peak demand and supply management exhibiting highly dynamic, self-organizing, autonomous yet coordinated algorithms under fine-grained distributed control. Our extensive experiments show very clearly that these short-term fluctuations could be leveled down by 70 - 75 %. In this way we have tackled, for the quickly increasing renewable power systems, a crucial problem of its stability, in a novel way that scales very easily due to the completely decentralized control.
In this paper, a property rights model for electric transmission is proposed and its properties analyzed. The proposed rights, called "border flow rights," support financial hedging of transmission risk and merchant transmission expansion through associated financial rights, called "contracts for differences of differences." These financial rights allow for forward trading of both energy and transmission by a unified exchange, avoiding the bifurcation in current markets between decentralized long-term energy trading and centralized long-term transmission trading. Such long-term trading can help to support the financing of both generation and transmission assets. We consider incentive properties of such a right in the absence of lumpiness, economies of scale, and market power.
R. Layi Fagbenle, M. Tunde Oladiran, Taiwo Oyedemi
Nigeria’s grid electricity supply of 5.881 GW installed capacity in the period 1994–1997 has experienced a sharp decline over the past five years to about 3 GW by 2002, even as electricity demand has grown due to population pressures, industrialization, and urban migration. Indeed the present situation is a near total collapse of the state power utility services, as total prolonged blackouts have been commonplace throughout the country in the past couple of years, and the situation may grow much worse unless significant shift in energy policy and investment takes place urgently. Diversification of energy sources to reduce the overt increasing dependence on fossil fuel generation and a shift towards renewable energy generation, particularly solar photovoltaic electricity, is a highly desirable policy shift. Among the gains would be reduced carbon emission into the environment and reduced transmission and distribution losses due to the possibility of decentralized generation and localized use of solar photovoltaic electricity. This paper examines the use of decentralized and gridconnected solar PV in building cladding as a pragmatic solution to the current power problems of Nigeria. The results of an ongoing investigation of the potential generating capacity of stand-alone and grid-connected solar PV cladding on residential and commercial buildings in Nigeria. An economic analysis of the proposed system is also considered as well as suggestions on financing. The cost of electricity from the proposed solar PV-clad buildings, calculated using an assumed 8% discount rate and a 25-year life expectancy was found to be significantly higher, in the double digits, than the present national tariff. Thus, novel financing schemes required are examined in the paper.
A survey of the 120 largest electric utilities reveals an industry-wide trend to incorporate conservation and load management, with 86 having adopted formal conservation programs and 81 with formal load-management programs. Utilities will be increasing their purchases from decentralized systems using renewable or cogenerated energy. This book reviews the survey results and presents profiles on the alternative energy programs and any innovative financing arrangements of each. Four appendices identify the utilities and summarize survey data. 1 figure, 3 tables. (DCK)
An early evaluation o the Home Insulation Program indicates that it is possible to carry on major conservation programs that result in a substantial saving to Tennessee Valley Authority (TVA) customers both from reduced electric bills and from reduction in electric system cost. The evidence from the TVA program strongly indicates that many utilities could realize benefits for themselves and their customers by implementing a comprehensive program for decentralized electricity, load management, cogeneration, and conservation. Of course, any financial benefit to the utility would be contingent on the treatment of costs associated with these programs on the balance sheet, on the income statement, and in allowable rate of return calculations. In particular, utility financing of customer installation of energy conservation and renewable energy systems must be treated in a manner that allows the utility to earn an acceptable rate of return. The Pacific Power and Light (PPL) Residential Energy Efficiency Rider is an example of how this can be handled. The program is beneficial to the utility because the entire cost of the weatherization measure can be added to the rate base with the customer paying the carrying charges on the capital. The customer benefits from the borrowing at themore » utility's cost of capital until the time of sale, at which time the value of the improvements is realized as a higher sale price for the house. While the value of such programs must be calculated on an individual basis, the authors feel that many utilities, particularly those that are in a position that makes it difficult to add new conventional capacity, could profit from the implementation of these programs. 1 reference, 2 figures, 6 tables.« less