Abstract

Abstract

Abstract

Abstract
This paper proposes a planning optimization model to help distribution system operators (DSOs) decide on the most cost-effective investments to handle the wholesale market participation of distributed energy resources (DERs). Two investment options are contemplated: market redesign; and network augmentation. The market redesign is employed through a DSO framework used to coordinate the network-secure participation of DERs in wholesale markets. Network augmentation is achieved by investing in new HV/MV OLTC and MV/LV transformers. To evaluate the performance of our planning model, we used the IEEE 69-bus network with three DER aggregators operating under different DER scenarios. Our tests show that the planning problem suggests investment decisions that can help DSOs guarantee network security. Market redesign has shown to be the most cost-effective option. However, this option is not always viable, namely in scenarios where not enough DERs are available to provide network support services. In such scenarios, hybrid investment solutions are required.

Abstract
The replacement of fossil fuel power plants by variable renewable energy sources is reducing the flexibility of the energy system, which puts at risk its security. Exploiting the flexibility of distributed multi-energy resources through aggregators presents a solution for this problem. In this context, this paper presents a new hierarchical model predictive control framework to assist multi-energy aggregators in the network-secure delivery of multi-energy services traded in electricity, natural gas, green hydrogen, and carbon markets. This work builds upon and complements a previous work from the same authors related to bidding strategies for day-ahead markets - it closes the cycle of aggregators' participation in multi-energy markets, i.e., day-ahead bidding and real-time activation of flexibility services. This new model predictive control framework uses the alternating direction method of multipliers on a rolling horizon to negotiate the network-secure delivery of multi-energy services between aggregators and distribution system operators of electricity, gas, and heat networks. We used the new model predictive control framework to conduct two studies. In the first study, we found that considering multi-energy network constraints at both day-ahead and real-time optimization stages produces the most cost-effective and reliable solution to aggregators, outperforming state-of-the-art approaches in terms of cost and network security. In the second study, we found that the adoption of a green hydrogen policy by multi-energy aggregators can reduce their consumption of natural gas and respective CO2 emissions significantly if carbon and green hydrogen prices are competitive.& COPY; 2023 Elsevier Ltd. All rights reserved.