Index

Note: Page numbers followed by f indicate figures and t indicate tables.

A

Accuracy score 104–105
Actual system model 158–159
Administration Fee (AdminFee) 59
Aggregator Capacity Fee (AggCapFee) 58
Aggregator Energy Fee (AggEnFee) 58
Aggregators, electricity markets 35
business value model 55, 56f
degree of online monitoring 38–39
distribution-grid constraints 38, 39f
DSOs 36–37
energy-schedule optimization 38
grid-connected units 37–38
MicroGrid 37–38
power-system control services 38
Swiss power system 38–39
vertically integrated vs. liberalized system structure 36–37, 37f
Ancillary service market 171
co-optimization 173, 195–196
operating reserves 173–174
short-term SER 172
Ancillary service provision, flexible unit portfolios 
aggregators 35
frequency control approach, benchmark portfolios 
control band, energy-storing unit 44
cost function coefficients 46
economic parameters 46, 46t
number of water heaters vs. parameter ranges 44, 45f
performance evaluation quantities 46
primary control with Portfolio A 46–48, 47f
primary control with Portfolio B 48–50, 49f
real system frequency 44
secondary control with Portfolio A 50–52, 51f
secondary control with Portfolio B 52–54, 53f
secondary frequency control signal data 44
simulation scenario parameter 44, 44t
notation 36, 36t
PNMF 35
profit-sharing methodology  See (Profit-sharing methodology)
revenue potential 
auctioning system 40
capacity prices 40, 41
net-operating profit 41–43
pay-as-bid pricing method 40
primary control 40, 41f
secondary control 40, 41f
structures and nomenclatures 39–40
Area control error (ACE) 99–100
Automatic generation control (AGC) 100, 105, 189–194

B

Balancing authorities (BAs) 99
Battery-based energy-storage systems (ESS) 
benefits and challenges 279
charge/discharge equations 283–284
controller action 282–283
decentralized storage concept 
battery lifetime 291–292, 292f
power profiles, energy levels 289–290, 290f
power threshold (Pth) levels 288f, 289f
energy and SOC limits 284
Li-ion batteries 283
operative constraints 290, 291t
Ps values 284
state-of-charge control 283
Belgian LV feeder system 
energy quantities 286, 287t
“generation-load,” 286, 286f
load and generation 285–286, 286f
PV penetration 284–285, 287, 287t
total energy losses 286, 287f
Business value model 55, 56f

C

Capacity offer MW 106
Capacity offer price 106
Capacity requirement 106–107
Cascade mitigation 
bilevel cascade-mitigation 118
corrective controller (Level 2) 137–138
economically optimal energy schedule (Level 1) 137
hierarchical control strategy 136, 136f
closed-loop feedback process 117
electric-power systems 
actual system model 158–159
base-case controller 157–158
natural-gas systems 147–148
receding-horizon MPC  See (Receding-horizon MPC)
multi-energy 
electrical energy storage 127
natural gas energy storage 127
one-minute time steps 138
shrinking-horizon  See (Shrinking-horizon MPC (SHMPC))
siting, sizing, and operational capability 126
temporary energy shortages 126
thermal energy storage 127
types of energy storage 126, 126t
Charge-scheduling algorithm, EVs 
demand-response algorithm 258–259
dynamic priority criteria 255–256, 259–260
flow chart 261–262, 262f
interval-selection process 257
load curve 258–259, 259f
power-controlled coordinated charging 255
smooth-valley filling 257, 258
time-controlled coordinated charging 255
unscheduled total demand 256, 257f
Compressed to air energy-storage (CAES) system 6–8, 9t
Contingency reserve 173, 174, 179
Control Response Fee (CrtlRespFee) 59–60
Control-Service Compensation (CtrlServComp) 58
Co-optimization 
energy dispatch 186
regulating reserve MCP 173, 194
with regulating reserve procurement 183

D

Day-ahead (DA) energy dispatch 188–189
Day-ahead market (DAM)  See also Hour-ahead markets (HAM)
charging/discharging cycles 296–297, 298, 298f
vs. HA operation 312, 313f
market prices, bus 21 309–310, 310f
storage unit bids 298
Day-ahead/real-time (DA/RT) interleave method 
existing methods 212, 212f
flow diagram 213f
market simulation 213–214, 213f, 215–216, 215f
5-minute wind/load profile 216–217, 216t, 217f
Delay score 104–105
Demand response resources (DRR) 171
Discharge time at rated power (DTRP) 171–172
Dispatchable hydro units 202, 204, 206
Distribution system operators (DSOs) 36–37
Dynamic regulation signal (REGD) 101–102

E

Electric energy storage (EES) 
CAES 6–8, 9t
capacitors 17, 18
characteristics 18–19, 20t, 24, 25t
flywheel 17
hydrogen storage system 15–17
lead-acid batteries 8–11
lithium-ion batteries 12–13
metals availability 24, 26t
mineral extraction 23–24
NiCd batteries 11
PHS 5–6
research and development 26
reserves/reserves base 23–24
SMES 15
sodium-sulphur batteries 11–12
supercapacitors 17, 18
types 23–24
VRB 14–15
ZBR batteries 13–14
Electricity Supplier (Supp) 57
Electric-power grid 115
Electric vehicles (EVs) 
availability 254–255, 255f
charge-scheduling algorithm 
demand-response algorithm 258–259
dynamic priority criteria 255–256, 259–260
flow chart 261–262, 262f
interval-selection process 257
load curve 258–259, 259f
power-controlled coordinated charging 255
smooth-valley filling 257, 258
time-controlled coordinated charging 255
unscheduled total demand 256, 257f
charging/discharging 254–255
office building 
battery life 268–270
EV fleet 268, 268t
predicted PV output 266, 267f
SOC profiles 268–271, 270f, 272f
solar PV intermittency and V2G capacity 268–271, 269f, 271f
V2G capacity estimation accuracy 271–273, 272t
peak demand 254
THD 254
V2G capacity-estimation method  See (Vehicle-to-grid (V2G) capacity-estimation method)
voltage fluctuations 254
wind energy systems 250–252, 253f
Energy and reserve markets  See Large-scale battery-storage systems
Energy-delivery systems 115
“Energy-hub” approach 116–117
Energy-purchasing cost minimization problem 233–234, 235
Energy storage, fast regulation service 
actual regulation responses 101, 101f
advantages of storage resources 98, 98t
attributers 97–98
benefits factor 102, 103f
CPS1 performance 101–102, 102f
dynamic regulation signal 101–102
ISO procurement 
ancillary service market 103
capacity payment 104
fast and slow resources 104
FERC order 755 104
regulation capacity price 104
regulation performance 104–105
regulation up-and regulation-down capacity 103
system balancing 103
market-clearance processing, PJM 
capacity and mileage definition 105–106
capacity requirement 106–107
mileage correlation factor 106
mileage cost 106
mileage requirement 107
PJM’s regulation service features 107
rank order 106
RMCP 107
PJM system resources 101–102
regulation procurement 100
secondary frequency control 
balancing authorities 99
balancing services and balancing reserves 99
synchronous units 97–98
Energy storage level (ESL) 182
Energy-storage model 
charging and discharging 128–129
MIL formulation 128–130
nonlinear complimentarity condition 128–129
normal and contingency operation 128
state of charge (SOC) 128–129
steady-state storage-power values 128
Energy-storage operation strategy 
communication channel 237
coordination mode 236
distribution-network topology 231f
distribution-system economic performance 237
failure mode 237
grid-connected mode 
communication and control network structure 236f
energy price determination 233
energy-purchasing cost minimization problem 233–234, 235
longer-term forecasting 235
MPC-based operation strategy 232–234
short-term forecasting 235
state-of-charge (SOC) level 233
high-energy price periods 241–242
IEEE reliability test system 
cost/benefit analysis 245
DC optimal power flow 242
expected energy not served (EENS) 243t
LOLP 243t
reliability indices 243t
sensitivity analysis 242
islanding mode 237
load aggregator 231–232
loss-of-load events 238, 241–242
low-energy price periods 241–242
reliability evaluation framework 
assessment flowchart 240f
Monte Carlo simulation 239
power-flow analysis 239–241
system-state determination 241
Equipment and ICT Cost (EquipICTFee) 59
Equipment and ICT Supplier (ICT) 57
E-tag 219, 221
European Power Exchange (EPEX) 40
External Asynchronous Resource (EAR) 
bi-directional 222, 223f
one-directional 222f, 223, 223f

F

Fast-responding regulation service (FRRS) 
advantages 111
ancillary service 107–108
deployment methods 
dispatch instruction 109–110, 109f
trigger frequency 110
down capacity 111
frequency decay, unit trips 111, 111f
resource qualification 108–109
response 107–108, 108f
up capacity 111
Federal Energy Regulatory Commission (FERC) 171, 172–173, 194
Final Customer (Cust) 57
Fixed-point MPC  See Shrinking-horizon MPC (SHMPC)
Flywheel energy storage 17
Frequency control approach, benchmark portfolios 
control band, energy-storing unit 44
cost function coefficients 46
economic parameters 46, 46t
number of water heaters vs. parameter ranges 44, 45f
performance evaluation quantities 46
primary control with Portfolio A 46–48, 47f
primary control with Portfolio B 48–50, 49f
real system frequency 44
secondary control with Portfolio A 50–52, 51f
secondary control with Portfolio B 52–54, 53f
secondary frequency control signal data 44
simulation scenario parameter 44, 44t

G

Generation-Coupling Fee (GenCoupFee) 58–59
Greenfield approach 
cascade mitigation  See (Cascade mitigation)
“energy-hub” approach 116–117
ETH Zürich project 116
forecasted optimal “target” system 115, 116f
multi-energy carriers 116 See also (Multi-energy system)

H

Hour-ahead markets (HAM)  See also Day-ahead market (DAM)
vs. DA 312, 313f
decision-making process 299, 299f
market prices, bus 21 309–310, 310f
profit calculation 300–301
reserve utilization 300–301, 302
Hydro-storage system 
dispatchable hydro units 204
EES 15–17
optimal bidding strategy 202–203
performance curve 205–206, 205f
ROR hydro units 204
simulation methodology 
DA-LMP forecast 211
flow diagram 209f
MT schedule model 210–211
PLEXOS tool 217–218
production-cost simulation model 208–209
sequential-planning model 211–212
types 201
VWS curve 206–208, 207f, 225–226

I

IEEE reliability test system 
cost/benefit analysis 245
DC optimal power flow 242
expected energy not served (EENS) 243t
LOLP 243t
reliability indices 243t
sensitivity analysis 242
IEEE RTS-96 power system 
base-case operation 162, 163f
buses 159
contingency management 159–160
data management and communication 165–166
disturbance 159
Dove and Waxwing conductors 159–160
interconnected physical regions 159, 160f
138 kV and 230 kV subsystems 159
network model parameters 159–160, 161t
73 nodes and 120 branches 159
objective function coefficients 160–162, 162t
simulation results 
balancing act 164–165, 164f
base-case cascading failure 162
double-line outage 162
generation costs 164f, 165
Level 1 economic reference 164f, 165
line temperature reduction 164f, 165
maximum line temperatures 163–164, 164f
objective function cost 163, 164f
post-disturbance Level 1 schedule 164–165, 164f
temperature dynamics 159–160
thermal ratings 159–160
Independent storage systems  See Large-scale battery-storage systems
ISO procurement 
ancillary service market 103
capacity payment 104
fast and slow resources 104
FERC order 755 104
regulation capacity price 104
regulation performance 104–105
regulation up-and regulation-down capacity 103
system balancing 103

L

Large-scale battery-storage systems 
convex program 296–297
DA market  See (Day-ahead market (DAM))
IEEE 24-bus test system 308–309, 309f
location impacts 315–316, 316f
optimal-capacity planning 314–315, 315f
optimality loss 310–312, 312t
solution methods 
first approach 303–305
second approach 305–307
stochastic vs. deterministic design 310, 311f
stochastic wind generation 297
storage capacity 314, 314f
SUC 308
wind-power penetration 296–297
wind-speed distribution 308–309, 309f
Lead-acid batteries 8–11
Limited energy stored resources (LESR) 172
Linear optimization 132–133
Line-outage models 
cascade failures 
evolution visualization 123, 124f
initial disturbance, overloads and line tripping, and terminal blackout 122–123, 123f
multi-scale timing 123
definition 119
deterministic outage model 120
line flow limit 119
probabilistic thermal outage model 
cumulative density function 120–121
exponential time-to-trip distribution 121–122, 122f
mixed-integer disjunctive line outage 122
over-current protection 121–122
time-to-failure density 120–121
transmission and sagging lines 120–121
Line tripping  See Line-outage models
Lithium-ion batteries 12–13
Load aggregator 
market-clearing mechanism 233
MPC-based operation strategy 235–236
objective 231, 232
renewable-energy generation 231–232
Locational marginal prices (LMPs) 70
Lost opportunity cost (LOC) 104, 106

M

Manitoba hydro (MH) system 
bi-directional EAR 222, 223f
dispatchable hydro units 202
E-tag 219, 221
generation scheduling 202
MISO-MH interface 
vs. DA LMPs 220–221, 220f
vs. storage volumes 220f
three AC-lines 218
network topology 218, 218f
one-directional EAR 222f, 223, 223f
production-cost savings 224f
reserve-cost savings 224f
RT tiered-bidding curve 222, 222f, 223f
Market-clearance processing 233
capacity and mileage definition 105–106
capacity requirement 106–107
mileage correlation factor 106
mileage cost 106
mileage requirement 107
PJM’s regulation service features 107
rank order 106
RMCP 107
Market clearing price (MCP) 
market-wide and zonal reserve MCPs 176–178
regulating reserve MCP  See (Regulating reserve MCP, short-term SER)
RMCP 107
MatPower 242
Midcontinent Independent System Operator (MISO) energy market design 
characteristics 172
DRR 171
fast-responsive storage resources vs. conventional regulation resources 172
market-based capacity payment 172–173
market-based performance payment 172–173
operating reserves 173
reliable and economical procurement 171
short-term SER 171
LESR 172
limit constraints and ramp constraints 176
market-product qualification 173–174
market-wide and zonal reserve MCPs 176–178
market-wide constraints 175
regulating reserve MCP  See (Regulating reserve MCP, short-term SER)
resource-level constraints 176
transmission constraints 175
zonal reserve constraints 175–176, 178–179
storage device characteristics 171–172
Mid-term (MT) schedule model 210–211
Mileage correlation factor 106
Mileage cost 106
Mileage offer price 106
Mileage requirement 107
Mixed-integer linear (MIL) 128–130
Model-predictive control (MPC) 116–117, 232–234 See also Cascade mitigation
algorithms 134
a priori disturbances 134
formulation 134–135
process/batch control 134
receding-horizon  See (Receding-horizon MPC)
retroactive control 134
temperature-based predictive algorithms 117–118
tree-based search method 117
voltage stability 117
Multi-energy system 
cascade mitigation 
electrical energy storage 127
natural gas energy storage 127
one-minute time steps 138
shrinking-horizon  See (Shrinking-horizon MPC (SHMPC))
siting, sizing, and operational capability 126
temporary energy shortages 126
thermal energy storage 127
types of energy storage 126, 126t
energy-hub model 
campus energy plant 125–126, 125f
computation and optimization 124
energy-carrier networks 125
interconnected elements 125
power flows 130–131

N

Net-operating profit, revenue potential 
energy revenue 41–43
generator ramping cost 41–43
individual revenue and cost terms 41–43
opportunity cost 43
storage cycling cost 41–43
Nickel-cadmium (NiCd) batteries 11

P

Performance score 105, 106
Photovoltaics (PVs) power generation 
conventional storage strategy 280, 281f
installed capacity 277
LV grid-supportive storage 
Belgian feeders  See (Belgian LV feeder system)
feeder voltage drop 282
overvoltage problems 279–280
point of common coupling 281–282
power-quality standard (EN 50160) 282
Photovoltaic (PV) systems 
distribution system architecture 251, 252f
frequency fluctuations 251
output power daily curve 252f
utilization rate 250–252
voltage fluctuations 251
voltage-rise problem 251
Piece-wise linear (PWL) line losses 132–133, 152–153
PLEXOS simulation tool 217–218
Point of common coupling (PCC) 281–282
Power flows 
cascade mitigation 131
nodes and arcs physical relationship 131
nonlinear constraint 131
power-balance equation 130, 131
power network 130, 130f
Power nodes modeling framework (PNMF) 35
Power plant (PP) 57
Power-Plant Capacity Fee (PPCapFee) 58
Power-Plant Energy Fee (PPEnFee) 58
Power-system reliability  See Energy-storage operation strategy
Precision score 105
Production-cost simulation model 208–209
Profit-sharing methodology 
actors and activities 
Aggregator 56–57
Electricity Supplier 57
Equipment and ICT Supplier 57
Final Customer 57
power plant 57
Storage Owner 57
TSO 55–56
Wholesale Market 57
application, water heater 
additional revenue, Portfolio A 64
additional revenue, Portfolio B 64
cash in-/out-flows 63–64, 63f, 63t
exchange parameters 61–62
financial compensation 64–65
negative bar, Energy Exchange 63–64
primary control provision by Portfolio A 62
primary control provision by Portfolio B 62
secondary control provision by Portfolio A 62
secondary control provision by Portfolio B 63
yearly financial results of scenarios 62–63, 62t
business value model 55, 56f
cash-flow consolidation 
CashExch 61
CashInOut 61
linear mapping 60
mapping matrices 60, 61
vectors 60
e3 value 54
graphic and mathematical representation 54
principal elements 54, 55, 55f
value exchanges 
actors cash in-and outflows 57–58
Administration Fee 59
Aggregator Capacity Fee 58
Aggregator Energy Fee 58
Control Response Fee 59–60
Control-Service Compensation 58
Equipment and ICT Cost 59
Generation-Coupling Fee 58–59
Power-Plant Capacity Fee 58
Power-Plant Energy Fee 58
Storage Fee 60
Wholesale Electricity Fee 59
Pumped hydroelectric storage (PHS) 5–6
PV systems  See Photovoltaic (PV) systems

Q

Quadratic programming (QP) problem 151–152

R

Ramp-rate limiting 
field result analysis 88, 88f
filtered ramp (violation) rates 88, 90f
and generation shifting 91–93, 92f
low-pass filter 86–88, 87f
minute-to-minute ramp rate 88, 89f
unfiltered ramp rates 88, 89f
Rank order 106
Real-time energy dispatch 
ACE profile 
Monte Carlo simulation 191, 192f
SERRegDeployfactor results 191, 193t
AGC deployment 
Max1stPriorityReg 190–191
priority group 190–191
SERRegDeployfactor 189, 190, 194
storage level 190, 191
capacity limit calculation 182–183
co-optimization with regulating reserve procurement 183
DA and RAC 188–189
energy storage level 182
load profile 185, 186f
options results comparison 186, 187t, 188
physical parameters 181–182, 185
presetting position 
amount of regulation maximization 184
regulating reserves maximization 184
ramp and limit constraints 185
resource offers and parameters 185, 186t
Receding-horizon MPC 
algebraic states 149–150
algorithm 148–149
complementarity condition 152
control inputs 149
dynamic states 149
fictitious losses 153
Level 2 model 149
Level 1 reference trajectories 154
negative LMPs 153
nodal prices 153
objective 150–151
power-balance constraints 153
prediction and control horizons 149
PWL line losses 152–153
QP problem 151–152
simultaneous charging and discharging 155–157
state and input vectors 150
temperature dynamics 152
temperature overload alleviation 154–155
thermal conductor model 152
uncontrollable inputs 149
Regulating reserve 173
Regulating reserve MCP, short-term SER 
binding zones 179
5-bus system 179, 180f
market-wide short-term SER regulating reserve constraint 178
performance-based regulation compensation 
cleared regulation capacity 194, 195
market-wide regulating mileage 195
performance accuracy measurement 196
real-time dispatch 196
regulating capacity offer 194, 195
regulating mileage MCP 196
regulating mileage offer 194, 195
regulation total offer 195
two-part payment methodology 194
RT-SCED 
clearing results 179–181, 181t
input data 179–181, 180t
real-time energy dispatch  See (Real-time energy dispatch)
shadow price 179–181
vs. spinning/supplemental reserve MCP 178–179
Regulation market clearing prices (RMCP) 107
Reliability assessment commitment (RAC) energy dispatch 188–189
Revenue potential 
auctioning system 40
capacity prices 40, 41
net-operating profit 41–43
pay-as-bid pricing method 40
primary control 40, 41f
secondary control 40, 41f
Run-of-the-river (ROR) hydro units 204

S

Security-constrained economic dispatch (SCED) 103
Short-term SER 171
LESR 172
limit constraints and ramp constraints 176
market-product qualification 173–174
market-wide and zonal reserve MCPs 176–178
market-wide constraints 175
regulating reserve MCP  See (Regulating reserve MCP, short-term SER)
resource-level constraints 176
transmission constraints 175
zonal reserve constraints 175–176, 178–179
Shrinking-horizon MPC (SHMPC) 
algorithm 139
closed-loop controller 139–140
deterministic line-tripping model 138
disadvantages 148
“dumb” controller 140
energy-hub network disturbances 
base-case controller 144
conversion efficiencies 142, 143t
device availability and performance 141
larger 69-hub system 141–142, 143t, 145, 145t, 146f
no disturbance cases 146
random grid-generating techniques 141–142
small 11-hub system 141–142, 142f, 143, 143t, 144t
linear SHMPC model 
base-case problem 141
constraints 140–141
objective 140
load-shedding 138
prediction horizons 138, 139f
storage capacity and storage power limits 142–146
zero-capacity MPC scheme 146–147
Smart energy storage (SES)  See Electric vehicles (EVs)
SmartGrid 36–37
Smart-grid communication 230
Smooth-valley filling 257, 258
Sodium-sulfur batteries 
applications 71–72
charging/discharging intervals 75–77, 76f, 76t
generation-shifting capability 
basic parameters 80–81
components 79
load and generator 80
$/MWh 82, 84f
negative contributors 82, 83f
off-peak to on-peak 74, 74f
optimal storage-to-wind ratio 82–85
positive contributors 82, 83f
ratio shifted 82, 84f
storage utilized 82, 84f
integrated model 91–93, 92f
operating principle 70–71, 71f
ramp-rate limiting 
field result analysis 88, 88f
filtered ramp (violation) rates 88, 90f
low-pass filter 86–88, 87f
minute-to-minute ramp rate 88, 89f
unfiltered ramp rates 88, 89f
state of charge 77–79, 77f
storage-to-wind ratio 72–74
U.S. and Japan 72, 73t
W2B project 72
Sodium-sulphur batteries 11–12
Stochastic unit commitment (SUC) 308
Storage Fee (StrgFee) 60
Storage Owner (StrgOw) 57
Storage-to-wind ratio 72–74, 77–79
Stored-energy resources (SER)  See Short-term SER
Superconducting magnetic energy-storage (SMES) 15
SwissIX spot market price 40

T

Tiered bidding method 203, 215
Total harmonic distortion (THD) 254
Transmission line losses 132–133
Transmission system operator (TSO) 36–37, 38–39, 55–56

V

Value of water in storage curve (VWS) curve 206–208, 207f, 225–226
Vanadium redox batteries (VRB) 14–15
Variable renewable electricity sources (VRES) 
load-following timescale 21–22
macroscale variations 2–3
management 23
mesoscale variations 2–3
microscale variations 2–3
power generation 4
regulation timescale 21
seasonal energy storage 22–23
unit-commitment timescale 22
wind-power integration 3–4
Vehicle-to-grid (V2G) capacity-estimation method 
accuracy 271–273, 272t
aggregation process 263
chargeability and drivability 263–265
continuous power 265
dynamic scheduling 266
EV battery-power ratings 263
flow chart 263–265, 264f
time factor τ 265
Virtual power plants (VPPs) 35

W

Wholesale Electricity Fee (WhElecFee) 59
Wholesale Market (WhMa) 57
Wind generation system 
electricity imports 68–69, 69t
energy storage system 69–70 See also (Sodium-sulfur batteries)
installed capacity 67, 68f
levelized cost estimation 67–68, 68t
Wind-to-Battery (W2B) project 72

Z

Zinc-bromine (ZBR) batteries 13–14
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