Risk Aware Robust Decision Making in Power Systems with Renewable Resources

Abstract

The increasing penetration of renewable generation poses significant risks to the reliable operation of power systems, mainly due to the variable and uncertain nature of the output of wind and solar resources. This dissertation presents a robust optimization based decision making framework in future power systems with high penetration of variable renewable resources.

The first part of this dissertation involves the modeling and analysis of a robust optimization based bidding strategy for the combination of a wind farm and an energy storage device participating in a deregulated electricity market. The selection of the uncertainty set for the robust optimization problem, based on the decision maker’s risk preference, is also discussed. From the market participant’s point of view improved utilization of the renewable resource, through storage enabled energy arbitrage, can lead to better economic performance. The storage device can provide firming power to the output of the wind farm, enabling the renewable resource to participate in the electricity market. The robust optimization based approach is compared to a deterministic optimization based approach through a numerical example.

The second part of this dissertation investigates the metric and the dispatch method needed for a more robust real-time market operation. A novel metric for evaluating system-wide ramp flexibility is proposed. A robust framework to ensure the reliable dispatch of generators is presented and analyzed. The robust model is compared to both the conventional economic dispatch as well as a proposed industry approach to managing system flexibility called the look-ahead dispatch. Furthermore, the formulation for a robust multi-zonal dispatch model is presented. The proposed robust model and flexibility index is demonstrated through a numerical on a modified IEEE 24 Bus Reliability Test System.