Abstract
Since the beginning of power system restructuring and creation of numerous temporal power markets, transmission congestion has become a serious challenge for independent system operators around the globe. On the other hand, in recent years, emission reduction has become a major concern for the electricity industry. As a widely accepted solution, attention has been drawn to renewable power resources promotion. However, penetration of these resources impacts on transmission congestion. In sum, these challenges reinforce the need for new approaches to facilitate interaction between the operator and energy market players defined as the generators (power generation companies) in order to provide proper operational signals for the operator. The main purpose of this chapter is to provide a combination of a leader–follower game theoretical mechanism and multiattribute decision-making for the operator to choose his best strategy by considering congestion-driven and environmental attributes. First the operator (as the leader) chooses K strategies arbitrarily. Each strategy is constituted by emission penalty factors for each generator, the amount of purchased power from renewable power resources, and a bid cap that provides a maximum bid for the price of electrical power for generators who intend to sell their power in the market. For each of the K strategies, the generators (as the followers) determine their optimum bids for selling power in the market. The interaction between generation companies is modeled as Nash-Supply Function equilibrium (SFE) game. Thereafter, for each of the K strategies, the operator performs congestion management and congestion-driven attributes and emission are obtained. The four different attributes are congestion cost, average locational marginal price (LMP) for different system buses, variance of the LMPs, and the generators’ emission. Finally, the operator’s preferred strategy is selected using the Technique for Order Preference by Similarity to Ideal Solution (TOPSIS). The proposed procedure is applied to the IEEE reliability 24-bus test system and the results are analyzed.
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Notes
- 1.
In some references in the energy market literature “independent system operator” is used instead of “operator,” and Generation Company or GenCo has been used instead of “generator.” In order to make the chapter more readable, we use “operator” and “generator” throughout the chapter.
Abbreviations
- \(C\left( {P_{it} } \right)\) :
-
Generator i’s cost function for power production when the operator chooses strategy \(t,t = 1, \ldots ,K\)
- \(C_{E} \left( {P_{it} } \right)\) :
-
Generator i’s emission cost function when the operator chooses strategy \(t,t = 1, \ldots ,K\)
- \(\psi_{it}\) :
-
Emission penalty factor imposed by the operator on the ith generator, \(i = 1, \ldots ,g\) when the operator chooses strategy \(t,t = 1, \ldots ,K\)
- \(r\) :
-
Number of renewable power resources, \(r \ge 0\)
- \(P_{{{\text{ren}},jt}}\) :
-
Operator’s amount of purchased renewable power from the resource located in jth bus in Mega Watt when the operator chooses strategy \(t,P_{{{\text{ren}},jt}} \ge 0\), j = 1 ,…, N, \(t = 1, \ldots ,K\)
- \(P_{{{\text{ren}},t}}\) :
-
Operator’s amount of purchased renewable power when the operator chooses strategy \(t,P_{{{\text{ren}},t}} \ge 0,\,P_{{{\text{ren}},t}} = \sum\limits_{j = 1}^{N} {P_{{{\text{ren}},jt}} } ,t = 1, \ldots ,K\)
- \(\beta_{\hbox{max} ,t}\) :
-
Operator’s market bid cap for limiting electricity price on electrical power when the operator chooses strategy \(t,t = 1, \ldots ,K\)
- \(a_{i} ,\,b_{i} ,\,c_{i}\) :
-
Generator i’s cost function coefficients
- \(a_{Ei} ,\,b_{Ei} \,,c_{Ei}\) :
-
Generator i’s emission cost function coefficients
- \(P_{it}\) :
-
Power produced by the ith generator, as determined by the operator to maximize social welfare within constraints when the operator chooses strategy \(t,t = 1, \ldots ,K\)
- \(P_{i}^{\hbox{max} }\) :
-
Maximum power produced by the ith generator
- \(P_{i}^{\hbox{min} }\) :
-
Minimum power produced by the ith generator
- \(P_{Th,kj}^{\hbox{max} }\) :
-
Thermal power flow limit of the transmission line between buses k and j, \(k,j = 1, \ldots ,N\)
- \(P_{St,kj}^{\hbox{max} }\) :
-
Stability power flow limit of the transmission line between buses k and j, \(k,j = 1, \ldots ,N\)
- \(N\) :
-
Number of transmission buses
- \(P_{line,kjt}\) :
-
Power flows across the transmission line between buses \(k\,{\text{and}}\,j,k,j = 1, \ldots ,N\) when the operator chooses strategy \(t,t = 1, \ldots ,K\)
- \({\text{LMP}}_{kt}\) :
-
Locational marginal price of bus \(k,k = 1, \ldots ,N\) when the operator chooses strategy \(t,t = 1, \ldots ,K\)
- \(CC_{t}\) :
-
The operator’s decision matrix M’s \(x_{1t}\) element, i.e., congestion cost when the operator chooses strategy \(t,t = 1, \ldots ,K\)
- \(ave\_{\text{LMP}}_{t}\) :
-
The operator’s decision matrix M’s \(x_{2t}\) element, i.e., average locational marginal price (LMP) for different system buses when the operator chooses strategy \(t,t = 1, \ldots ,K\)
- \(var\_{\text{LMP}}_{t}\) :
-
The operator’s decision matrix M’s \(x_{3t}\) element, i.e., variance of the LMPs when the operator chooses strategy \(t,t = 1, \ldots ,K\)
- \(emission_{t}\) :
-
The operator’s decision matrix M’s \(x_{4t}\) element, i.e., the g generators’ emission when the operator chooses strategy \(t,t = 1, \ldots ,K\)
- \(g_{n}\) :
-
Number of generators connected to bus n
- \(D\) :
-
Total electricity demand of all consumers
- \(d_{n}\) :
-
Number of electricity demands connected to bus \(n,\sum\nolimits_{k = 1}^{N} {d_{n} = D}\)
- \(P_{{nD_{k} }}\) :
-
Active power consumption of the kth electricity demand connected to bus n, \(k = 1, \ldots ,d_{n} ,n = 1, \ldots ,N\)
- \(SW_{t}\) :
-
Social welfare when the operator chooses strategy \(t,t = 1, \ldots ,K\)
- \(g\) :
-
Number of generators
- \(\beta_{it}\) :
-
The ith generator’s market bid for trading his electrical power in the market when the operator chooses strategy \(t,t = 1, \ldots ,K\)
- \(\kappa_{t}\) :
-
The distance of the strategy \(t,t = 1, \ldots ,K\) from the negative ideal strategy over the sum of distances of this strategy from positive and negative ideal strategy
- \(\lambda_{t}\) :
-
The estimated market clearing price for electrical power when the operator chooses strategy \(t,t = 1, \ldots ,K\)
- \(Y_{i}\) :
-
The operator strategies’ ith attribute, \(i = 1, \ldots ,4\), i.e., the ith column of the operator’s \(K \times 4\) decision matrix M
- \(A\) :
-
Operator’s \(4 \times 4\) comparison matrix of attributes
- \(M\) :
-
Operator’s \(K \times 4\) decision matrix
- \(S_{t}^{*} = \left[ {\psi_{1t}^{*} , \ldots ,\psi_{32t}^{*} ,P_{{{\text{ren}},t}}^{*} ,\beta_{{{ \hbox{max} },t}}^{*} } \right]\) :
-
The operator’s preferred strategy
- \(S = \left\{ {S_{t} = [\psi_{1t} , \ldots ,\psi_{3,t} ,P_{{{\text{ren}},t}} ,\beta_{\hbox{max} ,t} ]\quad\forall t = 1, \ldots ,K} \right\}\) :
-
The operator’s set of K strategies
- \(PI_{t}\) :
-
Performance index of the power system when the operator chooses strategy \(t,t = 1, \ldots ,K\)
- SFE:
-
Supply function equilibrium
- TCM:
-
Transmission congestion management
- TOPSIS:
-
Technique for order preference by similarity to ideal solution
- LMP:
-
Locational marginal price
- PIS:
-
Positive ideal strategy
- NIS:
-
Negative ideal strategy
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We thank anonymous referees for their helpful suggestions.
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Appendix When \(a_{i} = 0\) for at Least One Generator
Appendix When \(a_{i} = 0\) for at Least One Generator
Assume that \(a_{i} = 0\) when \(i = 1, \ldots ,g_{0}\), and \(a_{i} > 0\) when \(i = g_{0} + 1, \ldots ,g,\,1 \le g_{0} \le g\). Taking the limit for (9) gives:
Separating the terms related to the \(g_{0}\) generators with \(a_{i} = 0\), and the \(g - g_{0}\) generators with \(a_{i} > 0\), gives:
The calculated \(\lambda_{t}\) will be substituted in (10) and the rest of the calculation procedure will be the same as what we developed for the case of \(a_{i} > 0;i = 1, \ldots ,g\).
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Salehizadeh, M.R., Rahimi-Kian, A., Hausken, K. (2015). A Leader–Follower Game on Congestion Management in Power Systems. In: Hausken, K., Zhuang, J. (eds) Game Theoretic Analysis of Congestion, Safety and Security. Springer Series in Reliability Engineering. Springer, Cham. https://doi.org/10.1007/978-3-319-13009-5_4
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