Block 1 - Nando Ochoa - The Role and Challenges of OPF in Distribution v1

PhD-Level Short Course “Advanced Modelling of DER-Rich Active Distribution Networks”
Day 3 “Orchestration of Distributed Energy Resources (DER) and Active Distribution Networks”
The Role and Challenges of

OPF in Distribution
Day 3 Block 1
Prof Luis(Nando) Ochoa

Professor of Smart Grids and Power Systems
The University of Melbourne

July, 2021
© 2021 L. Ochoa - The University of Melbourne Advanced Modelling of DER-Rich Active Distribution Networks – Day 3 Block 1, July 2021 1
Outline
▪ Context
– DER, Evolution of Distribution Networks
– The Basics: DER1 Impacts and Solutions, Hosting Capacity
▪ OPF in Distribution
– Operation and Planning
– Modelling Challenges
– Towards Real Implementations: Computer and HIL2 Testing
▪ Conclusions
1 DER = Distributed Energy Resources

2 HIL = Hardware in the Loop
Technology Cost Declines Since 2010
85% 49% 85%

Source: Bloomberg New Energy Finance 2019, https://about.bnef.com/new-energy-outlook/#toc-download
Some Stats 2019/2020
Peak: ~36 GW (NEM)1
PV: 18.5+ GW, 2.5+ million installations2

Australia 1 in ~4 houses with PV (2+ out of 10 million)
Residential Batteries: ~100k installations3
1 Australian Energy Regulator

2 Australian PV Institute
3 SunWiz
Decentralisation Ratio of Electricity Generation
Source: https://assets.cleanenergycouncil.org.au/documents/advocacy-initiatives/the-distributed-energy-resources-
revolution-paper.pdf and Bloomberg New Energy Finance, New Energy Outlook 2018
DER → Distribution Network Impacts → DER Integration → DER Orchestration
Evolution of Distribution Networks
Passive Distribution Moderate

Networks Automation Smart Grids
DER (Active Networks)
(Semi-active) (Active Networks)
BAU1 Reliability DER Integration DER Orchestration

‘Fit and Forget’ … but DER is treated DER help solving its Best use and control
connections of DER the same way own issues, better of DER and network
use of network assets
assets
1 BAU = Business As Usual
Smart & Low Carbon
Bulk Medium-scale Storage Wind and

Generation controllable DER PV Farms
Hierarchical control
Local control
New Service Markets

Bottom-Up Services: Advanced Network
$
Energy Management
Frequency response Small-scale Homes, Schools,
Transmission operation controllable DER Shops, Businesses
Transmission Distribution
But before we get there…
Let’s start with the basics
8
Solar PV & Low Voltage (LV) Networks
Off-LTC
LV Feeder (3f): 400V L-L

I Homes (1f): 230V L-N
Max
V
Min
PV generation happens during the day, when many

people are not at home → Problems
Solar PV & Medium Voltage (MV) Networks
Primary Sub
OLTC
Off-LTC
MV Feeder (3f): 22kV L-L
I Widespread PV adoption → Widespread problems

How can we determine the hosting capacity of our networks?
V What is the best way to increase that hosting capacity?
Active Control of PV Inverters
Curtailment
or vars
Max
V
Min
PV impacts could be avoided by actively controlling

PV inverters (sending signals when needed)
LV Networks and PV-Storage Systems
I
Batteries
Max
V
Min
PV impacts could be avoided using batteries to store

excess generation for later
Electric Vehicles & LV Networks
Off-LTC
LV Feeder (3f): 400V L-L

I Homes (1f): 230V L-N
Max
V
Min
EV demand happens during peak hours, when people

return home → Problems
Electric Vehicles & MV Networks
Primary Sub
OLTC
Off-LTC
MV Feeder (3f): 22kV L-L
I Widespread EV adoption → Widespread problems

How can we determine the hosting capacity of our networks?
V What is the best way to increase that hosting capacity?
Management of EV Charging Points
Off-LTC
I
Disconnection
Max
V
Min
EV impacts could be avoided disconnecting charging

points when needed
… Some Definitions
▪ DER Hosting Capacity

– The maximum amount of DER that a given distribution network (or part of it) can host
without negatively affecting its normal operation at any point in time.
▪ Normal Operation
– Voltages (statutory limits), asset utilisation (no congestion), protection, etc.
▪ Amount of DER (DER Penetration)

– Number (or %) of customers with DER, kW of total DER capacity, etc.
▪ Solutions
– Traditional or implementable solutions that distribution companies use or can use to
increase hosting capacity without significant complexity.
– Non-traditional solutions that distribution companies could use to increase hosting
capacity, albeit with some added complexity.
Increasing DER Hosting Capacity
Potential Solutions: Traditional and Non-Traditional
▪ Traditional
– Augmentation aka wires alternatives Distribution companies
are/will be doing this
– Better settings for LV Off-LTCs
– Better settings for MV OLTCs (Primary Subs)
– DER Settings/Limits: PV Volt-Watt, Level 1/2 Charging
▪ Non-Traditional
– Active control1 of MV OLTCs (Primary Subs)
Distribution companies
– Active control of LV OLTCs are/will be exploring this
– Active control of DER
Which are the most cost-effective solutions?

1 Local or remote advanced control
Increasing DER Hosting Capacity
Potential Solutions: Traditional and Non-Traditional
▪ Traditional
– Augmentation aka wires alternatives → V? I✓
– Better settings for LV Off-LTCs → V✓ I
1 One solution does not
– Better settings for MV OLTCs (Primary Subs) → V✓ I always address all issues
– DER Settings/Limits: PV Volt-Watt, Level 1/2 Charging → V I? 2 It depends on the network

→ Different problems
3 It depends on the timeline

▪ Non-Traditional → DER adoption
– Active control1 of MV OLTCs (Primary Subs) → V✓ I
There is no silver bullet.
– Active control of LV OLTCs → V✓ I
– Active control of DER → V✓ I?
Which is the most cost-effective mix of solutions

for a given DER penetration and type of network?
1 Local or remote advanced control
OK… but what’s the role of the
OPF in distribution?
19
AC OPF in Distribution
… The AC OPF is just a tool (kind of). But a powerful one! ☺
DER and Network Operation

Seconds to
▪ Settings (DER, Network Assets) to ensure network integrity minutes
– E.g., PV dynamic export limits, EV disconnection/scheduling, OLTC/Cap banks
DER and Network Planning

▪ Hosting Capacity embedding operation to ensure network integrity Weeks to
years
– E.g., Optimal location/size of DER, optimal network upgrades
The OPF can have an important role in the

operation and planning of DER-rich distribution networks.
But there are many challenges for it to be adopted by industry.
AC Optimal Power Flow (OPF)
The Basics
▪ One way of formulating the problem

▪ Used in transmission (1f DC or AC)… starting to enter distribution (1f AC)
Can be used
Max/Min Objective Function for operation
and planning
Subject to:
• real and reactive nodal power balance

• voltage angle set to zero for the reference bus
Basic 1f
• voltage level constraints
AC OPF
• thermal limits (lines and transformers)
• control of DER and/or network elements
Operation → Distribution networks are inherently unbalanced 

Planning → DER and demand are variable 
AC OPF for Operation
Managing DER and Network Elements
▪ Output: Settings for DER and Network Assets
DER harvesting, DER

Max/Min Objective Function
services, losses, etc.
Subject to:
• 3f parameters (Z, P, Q, etc.)

3f • 3f variables (V, I, etc.)
AC OPF • 3f equality constraints (KCL, KVL)
• 3f inequality constraints (network V and I limits)
• Controllable DER → Settings

• Non-controllable DER
DER and Smart Grid Schemes
• Controllable network assets (OLTCs) → Settings
Network • Non-controllable network assets
(Constraints and
• Other considerations: N-1 security, fault levels, power controllability)
factors, curtailment, dynamic ratings, etc.
Applied when a problem occurs or using control cycles (secs to mins)
AC OPF for Planning
Embedding Operation into DER Planning
▪ Output: DER Hosting Capacity (size and location)
DER installed capacity,

Max/Min Objective Function
DER installations, etc.
Subject to:
Multi- • 3f parameters (Z, P, Q, etc.)

Period • 3f variables (V, I, etc.)
3f • 3f equality constraints (KCL, KVL)
AC OPF • 3f inequality constraints (network V and I limits)
• Controllable DER → Settings

• Non-controllable DER
DER and Smart Grid Schemes
• Controllable network assets (OLTCs) → Settings
Network • Non-controllable network assets
(Constraints and
• Other considerations: N-1 security, fault levels, power controllability)
factors, curtailment, dynamic ratings, etc.
Applied on a worst-case scenario or over a horizon (weeks to years)
… and to do this well, we need
proper models
24
DER and Distribution Networks: Modelling Challenges
▪ Voltage is a locational effect → Network models (impedances)
▪ Residential DER → LV network models (MV not enough)
▪ Unbalance (effects among phases) matter → Three-phase models
▪ Demand with DER needs to observable/understood → Data (lots)
▪ Flexible network assets (e.g., OLTCs) → More complexity
Capturing the physics of MV & LV networks is key

But, in practice, distribution companies do not have complete data and models
Basic Modelling of Distribution Networks
1. Typically considering balanced networks

– Not realistic but an OK approximation for MV networks (>1kV)
– Inadequate when closer to end customers (LV < 1KV)
2. Typically considering snapshots or hourly profiles

– Helps simplifying planning problems (e.g., reconfiguration or location of capacitors for
power loss minimisation during peak)
– Neglects the actual load and (renewable) generation changes that can significantly
affect the main objectives (e.g., energy efficiency, asset utilisation)
– Simplified profiles (15, 30, 60 min) neglects the actual control of network elements
(e.g., OLTCs act in ~1 min)
3. Typically deterministic
– The uncertainties due to the variability, location, size of ‘common’ and future loads as
well as renewable generation are neglected
– This simplifies the problem but can over or underestimate impacts/benefits
4. Typically analysing a single voltage level

– Considered due to its simplicity (smaller networks)
– The impacts of new technologies on one voltage level (e.g., MV) can be over or
underestimated if neglecting the interdependencies with other voltage levels (e.g., LV or
MV)
5. Typically considering a single simulation platform

– Problems, most commonly optimisation ones, tend to provide solutions that do not
consider the potential real implementation, i.e., simulation results finish on one
platform.
– This simplifies the problem but can over or underestimate impacts/benefits
– Can we have multiple hardware/software simulation platforms?
6. Typically considering only the electricity systems

– Again, for simplicity.
– ICT infrastructure (e.g., delays, errors)? Measurements affect control performance.
– Transport, water, heat, cooling systems and their interdependencies with
electricity?
Towards State-of-the-Art Modelling 1/2
1. Balanced → Unbalanced
2. Snapshot → Realistic time-series profiles (demand, devices, DER)
3. Deterministic → Probabilistic
4. Single voltage level → Integrated multi-voltage level modelling
5. Single simulation platform → Co-simulation
6. Only the electricity system → Multiple systems
Much more complexity…

But we have the tools and computational power!
Towards State-of-the-Art Modelling 2/2
Demand PV Batteries
9
6
Electricity [kW]
0
0 50 100 150 200 250 300
EVs
4 1.6
1.4
Individual EV demand (kW)
Average EV demand (kW)

3 EV Load 1 1.2
EV Load 2
EV Load 3 1.0
Model
2 0.8
Monitored
0.6
1 0.4
0.2
0 0
0h 2h 4h 6h 8h 10h 12h 14h 16h 18h 20h 22h 24h
Time of Day
Adequate demand and DER modelling is critical
Demand
(kW)
Generation
(kW)
Off-the-Shelf
Battery
Charge/Discharge
Controller
(kW) Demo
Battery SOC
(%) 5kWp PV
5kW/13kWh Battery
Household Net
(kW)
Mon Tue Wed Fri Sat Sun 31

AC OPF and Real Distribution Networks: Some Challenges
▪ Scalability
– Large integrated multi voltage level networks (e.g., MV-LV)
– Three-phase modelling not trivial (e.g., 1f/2f/3f customers, SWER lines)
– DER and special devices (capacitors, OLTCs) → Mixed Integer NLP or LP
– Simplified formulations → Reduced accuracy
▪ Speed
– Fast solution (around or less than a minute for operational purposes)
▪ Monitoring/Data
– Relies on full observability of DER/demand/network and good data
▪ Uncertainties
– Stochastic → Increased complexity Many challenges…
but little by little are being overcome
Towards Real Implementations: Computer Testing
Real world
• Measurements • Measurements
• Current set points • Forecast (D+DER)
NMS
SCADA • New set points Interface • Set points Optimisation
• Control actions • Control actions
Engine
Modelling/Simulations
(Network and
• Measurements (Interface) • Measurements (NMS Opt Engine)
SCADA) • Current set points • Forecast (D+DER)
• Calculates • Solves OPF for

• Minute-scale impact metrics control purposes
• New set points • Set points
power flows • Produces in next control
• Control actions • Control actions
forecast cycle
… but can optimisation approaches
work in practice?
34
Towards Real Implementations: HIL Testing
▪ Real-Time Digital Simulator (RTDS)

– Mimics the real-time behaviour of electricity networks
– Analogue and digital I/Os exchange data (measurement and control settings) with other
elements or platforms
▪ Control Room-style demonstration room
Energy storage Actual transmission and/or

technology distribution network
Real-time
inputs/outputs
Siemens M icroTAPP
Kelvatek WEEZAP
RTDS simulates
realistic network
Control of network
devices/elements
Closed-loop simulation
“Using OPF for Smart Grids: From Concept to Reality”
https://www.youtube.com/watch?v=1TxaNIqTno4
36
Conclusions
▪ DER Adoption: People and businesses are installing DER
▪ Network Adaptation: Distribution companies will increase their hosting capacity

– Exploiting existing assets and DER functionalities
▪ DER Orchestration: We need to control DER and networks in the best way possible
▪ AC OPF has a role in both the operation and planning of DER-rich networks… even
if its application feels far now
– There are multiple challenges to overcome… but we are getting there ☺
Remember: Optimisation per se should not be the goal.

Solving an engineering problem is the goal ☺
Further Reading
▪ Technical Reports and Papers (most publicly available):
https://sites.google.com/view/luisfochoa/publications
▪ Webinars:
IEEE PES Resource Center (search: Ochoa)
IEEE Smart Grid Resource Center (search: Ochoa)
Thanks!
Questions?
luis.ochoa@unimelb.edu.au
Acknowledgement
◦ Dr Michael Liu Research Fellow

◦ Dr Andreas Procopiou Past Research Fellow
◦ Dr Luis Gutierrez Past Research Fellow

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PhD-Level Short Course “Advanced Modelling of DER-Rich Active Distribution Networks”

The Role and Challenges of

Prof Luis(Nando) Ochoa

The University of Melbourne

1 DER = Distributed Energy Resources

85% 49% 85%

Peak: ~36 GW (NEM)1

PV: 18.5+ GW, 2.5+ million installations2

Residential Batteries: ~100k installations3

1 Australian Energy Regulator

DER → Distribution Network Impacts → DER Integration → DER Orchestration

Passive Distribution Moderate

BAU1 Reliability DER Integration DER Orchestration

Bulk Medium-scale Storage Wind and

New Service Markets

Let’s start with the basics

LV Feeder (3f): 400V L-L

PV generation happens during the day, when many

MV Feeder (3f): 22kV L-L

I Widespread PV adoption → Widespread problems

PV impacts could be avoided by actively controlling

PV impacts could be avoided using batteries to store

LV Feeder (3f): 400V L-L

EV demand happens during peak hours, when people

MV Feeder (3f): 22kV L-L

I Widespread EV adoption → Widespread problems

EV impacts could be avoided disconnecting charging

▪ DER Hosting Capacity

▪ Amount of DER (DER Penetration)

Which are the most cost-effective solutions?

– DER Settings/Limits: PV Volt-Watt, Level 1/2 Charging → V I? 2 It depends on the network

3 It depends on the timeline

Which is the most cost-effective mix of solutions

… The AC OPF is just a tool (kind of). But a powerful one! ☺

DER and Network Operation

– E.g., PV dynamic export limits, EV disconnection/scheduling, OLTC/Cap banks

DER and Network Planning

The OPF can have an important role in the

▪ One way of formulating the problem

• real and reactive nodal power balance

Operation → Distribution networks are inherently unbalanced 

▪ Output: Settings for DER and Network Assets

DER harvesting, DER

• 3f parameters (Z, P, Q, etc.)

• Controllable DER → Settings

Applied when a problem occurs or using control cycles (secs to mins)

▪ Output: DER Hosting Capacity (size and location)

DER installed capacity,

Multi- • 3f parameters (Z, P, Q, etc.)

• Controllable DER → Settings

Applied on a worst-case scenario or over a horizon (weeks to years)

▪ Voltage is a locational effect → Network models (impedances)

▪ Residential DER → LV network models (MV not enough)

▪ Unbalance (effects among phases) matter → Three-phase models

▪ Demand with DER needs to observable/understood → Data (lots)

▪ Flexible network assets (e.g., OLTCs) → More complexity

Capturing the physics of MV & LV networks is key

1. Typically considering balanced networks

2. Typically considering snapshots or hourly profiles

4. Typically analysing a single voltage level

5. Typically considering a single simulation platform

6. Typically considering only the electricity systems

2. Snapshot → Realistic time-series profiles (demand, devices, DER)

4. Single voltage level → Integrated multi-voltage level modelling