Intelligence by design in an entropic power grid

In this work, the term Entropic Grid is coined to describe a power grid with increased levels of uncertainty and dynamics. These new features will require the reconsideration of well-established paradigms in the way of planning and operating the grid and its associated markets. New tools and models able to handle uncertainty and dynamics will form the required scaffolding to properly capture the behavior of the physical system, along with the value of new technologies and policies. The leverage of this knowledge will facilitate the design of new architectures to organize power and energy systems and their associated markets. This work presents several results, tools and models with the goal of contributing to that design objective. A central idea of this thesis is that the definition of products is critical in electricity markets. When markets are constructed with appropriate product definitions in mind, the interference between the physical and the market/financial systems seen in today's markets can be reduced. A key element of evaluating market designs is understanding the impact that salient features of an entropic grid---uncertainty, dynamics, constraints---can have on the electricity markets. Dynamic electricity market models tailored to capture such features are developed in this work. Using a multi-settlement dynamic electricity market, the impact of volatility is investigated. The results show the need to implement policies and technologies able to cope with the volatility of renewable sources. Similarly, using a dynamic electricity market model in which ramping costs are considered, the impacts of those costs on electricity markets are investigated. The key conclusion is that those additional ramping costs, in average terms, are not reflected in electricity prices. These results reveal several difficulties with today's real-time markets. Elements of an alternative architecture to organize these markets are also discussed.

Name thesis:degree_name

Ph.D.

Level thesis:degree_level

Dissertation

Discipline thesis:degree_discipline

Electrical & Computer Engr

Grantor

University of Illinois at Urbana-Champaign

Year dc:date

2013

Author dc:creator

• Negrete-Pincetic, Matias

Contributors dc:contributor

• Meyn, Sean P.
• Sauer, Peter W.
• de Castro, Luciano
• Domínguez-García, Alejandro D.
• Shanbhag, Vinayak V.

• Power and Energy Systems
• Electricity Markets
• Stochastic Control
• Energy Economics

Statement dc:rights

• Copyright 2012 Matias Negrete-Pincetic

Language dc:language

en

Handle dc:identifier

http://hdl.handle.net/2142/42467

OAI identifier oai:identifier

oai:www.ideals.illinois.edu:2142/42467