Researchers Tanmay Mishra, Dakota Hamilton, and Mads R. Almassalkhi from the University of Texas at Austin have developed a framework to help hybrid energy systems (HES) participate effectively in frequency regulation markets. Their work aims to address the challenges posed by the increasing integration of renewable energy sources and distributed energy resources into modern power systems.
The researchers propose a two-level framework designed to optimize the bidding and real-time control of HES in regulation markets. At the upper level, the framework uses a chance-constrained optimization approach to determine the best capacity bids based on historical regulation signals. This helps HES providers make informed decisions about how much regulation capacity to offer, considering the inherent uncertainties in the market.
At the lower level, the framework employs a real-time control strategy to distribute the regulation power among the various components of the HES, such as controllable generators, flexible loads, and battery storage. This ensures that the HES can respond effectively to grid frequency fluctuations while maintaining overall system reliability. The researchers benchmarked this real-time control strategy against an offline optimal dispatch to evaluate its flexibility performance, demonstrating its effectiveness in managing the dynamic nature of regulation markets.
The study also explores the profitability of overbidding strategies, which involve offering more regulation capacity than can be reliably delivered. While overbidding can increase revenue, it also risks performance degradation, which may lead to market penalties or even disqualification. The framework identifies thresholds beyond which the risks of overbidding outweigh the benefits, providing valuable insights for HES operators.
Additionally, the researchers examined the impact of power capacity imbalances within HES through asymmetric configurations. They analyzed how these imbalances affect overall performance and the state of charge (SoC) of battery storage systems. This analysis helps in understanding the trade-offs involved in designing and operating HES, ensuring that they can meet regulatory requirements while maintaining economic viability.
The practical applications of this research are significant for the energy sector. By enabling HES to participate more effectively in regulation markets, the framework can enhance grid flexibility and reliability. This is particularly important as the share of renewable energy sources continues to grow, introducing greater uncertainty and variability into the power system. The insights gained from this study can help energy providers optimize their operations, improve market performance, and contribute to a more stable and efficient grid.
The research was published in the IEEE Transactions on Power Systems, a leading journal in the field of power and energy systems engineering. This publication underscores the relevance and potential impact of the study on the broader energy industry.
This article is based on research available at arXiv.