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Article history: Broadcasting of dynamic energy price signals for consumer's demand response programs (agents) is an
Received 17 December 2018 effective and feasible way for demand side load management in future smart grids. Particularly, under
Received in revised form fluctuating generation conditions of distributed renewable sources, automated and online market
19 March 2019
management strategies based on dynamic pricing are necessary for persistently conservation of energy
Accepted 6 April 2019
balance and reducing the risk of instant energy shortages in the smart grids. This study presents a control
Available online 8 April 2019
theoretic energy market management approach based on closed loop elastic demand control scheme by
means of dynamic price signal broadcasting. A PI controller structure is used to regulate energy price
Keywords:
Demand response
signals for demand response agents of smart grid community. Thus, total energy demand can be gov-
Dynamic energy price erned to respond fluctuation of renewable energy generation. To illustrate an application, a renewable
Closed loop demand control energy integrated microgrid management scenario was studied numerically. A first order dynamic sys-
Renewable energy integration tem model with a piecewise linear price-demand response is used to represent overall demand elasticity
Smart grid of the microgrid and a renewable energy microgrid simulation scenario is developed in Matlab/Simulink
simulation environment. Simulation of 90 MWh peak demand market demonstrate that the closed loop
dynamic energy pricing can be useful to control the elastic demand for tracing fluctuating generation of
renewable energy sources. It is concluded that dynamic energy pricing can be useful medium for energy
demand control.
© 2019 Elsevier Ltd. All rights reserved.
1. Introduction the preservation of energy balance and still there is need for
focused research works to improve energy reliability of renewable
Integration of renewable energy sources is the main concern of energy integrated grids. Depending on meteorological conditions,
smart grid research studies due to the fact that sustainable and eco- energy capacity of solar and wind may change occasionally and this
friendly development of society is possible only by increasing brings to the problem of energy imbalance and short-term outage
renewable energy utilization instead of conventional generation risks. Demand side load management (DSLM) application of smart
methods such as fossil based fuels and radioactive fuels. In order to grids is a strong candidate for the solution of this problem [8,9].
increase penetration of renewable sources, integration of the local Because, flexible demand helps for adjustment of energy demand
or domestic renewable energy generators to microgrids are according to generation fluctuations and thus serves for the pre-
considered as distributed generation prospect of smart grids [1e6]. vention of energy balance to some extent under generation un-
In this way, local renewable generation significantly decreases certainty [9]. This is why, control of elastic demand for the
energy dependence of the microgrids to central power plants and conservation of energy balance is getting one of the main subjects
thus increases energy efficiency by reducing transmission losses of smart grid research studies [8]. Recent works on microgrid
[5e7]. Accordingly, this concept is also expected to support the technologies have already announced the future potentials of
reduction of CO2 emission in microgids [7]. However, intermittent having an interactive coordination between energy suppliers and
and fluctuating character of renewable sources, such as uncertainty consumers [10,11].
in wind regimes and solar irradiance, is a major complication for Automated demand side load management applications makes
the total demand of markets more deterministic and predictable for
future [12e14]. Because, automated response and deterministic
programs reduce uncertainly in demand response. For instance,
E-mail address: asim.kaygusuz@inonu.edu.tr.
https://doi.org/10.1016/j.energy.2019.04.036
0360-5442/© 2019 Elsevier Ltd. All rights reserved.
A. Kaygusuz / Energy 176 (2019) 596e603 597
optimal load control by communicating consumer system can or load shedding techniques [13,20] according to instant price
operate for balancing load with generation and restoring the utility signal of dynamic price servers. Dynamic price servers can perform
frequency of AC power systems even if consumer uses very the closed loop elastic demand control according to total genera-
simplified agent programs to manage their load response programs tion data (S), coming from local renewable energy generators, and
[15]. For liberal energy markets, a possible way of controlling these total demand data (D), collected from smart meters of residences.
kind of distributed agents is to broadcast dynamic energy price For AC grids, utility frequency deviations were measured for the
signal that is periodically updated by intelligent algorithms or estimation of power imbalance state of grids [15]. Because, it can
controllers [12,13]. Agent based demand response applications are give more accurate and faster results for the estimation of imbal-
expected to work on smart meters of consumers, and these appli- ance states compared to the methods based on data retrieving from
cations will be capable of receiving and responding dynamic price smart meters.
signals and perform predefined domestic load management oper- A block diagram of closed loop elastic demand control system
ations in future smart grids. was shown in Fig. 2. The price signal (p) is provided by PI controller.
There is an increasing trend in works suggesting closed loop Here, the elastic demand response of consumers was characterized
generation, demand control schemes and electricity market in a by the first-order dynamic system model with a piece-wise linear
renewable energy system [9,11,13e18,25]. Optimal control strate- price-elastic demand function DðpÞ. The elastic demand response
gies have been discussed for diverse market parameters [26e30]. model can expressed by considering the time constant (t) of load
The current study addresses the problem of closed loop elastic response and the price-demand function as follows:
demand control for future smart grids. We carried out a theoretical
discussion on the opportunities of wide-area, automated closed dDo ðtÞ
t þ Do ðtÞ ¼ DðpÞ (1)
loop demand response control by dynamic price broadcasting to dt
consumer's demand response programs. For the calculation of
where, Do ðtÞ is the instant demand of consumers and the price-
appropriate dynamic energy price to reduce energy balance error,
demand function DðpÞ stands for price-demand response of mar-
we employed proportional integrator (PI) controller in closed loop
ket. This equation infers that change of instant demand in time take
demand control simulations. The operation of system can be
place depending on the price-demand function.
summarized briefly as: Depending on closed loop feedback error,
The overall system delay is introduced by the price signal
which is called as balance error (mismatch between generation and
broadcast delay (Lp ) [11,21]. This delay represents the time interval
demand) in our case, PI controller generates the price signal driving
ranging from broadcast delay of price signal to the completion of
the balance error towards zero in time. The control theory ensures
response of the domestic load management programs. An impor-
that if the feedback control system is stable and steady state error of
tant point should be noticed that the automation of domestic load
system is zero, the closed loop feedback error approximates to zero.
management in future smart grid makes the price-demand
Therefore, closed loop elastic demand control system reaches en-
response of markets more deterministic and predictable. Because,
ergy balance by persistently updating energy price. In this
agent programs reduce uncertainty in demand response. In such
approach, energy prices, transmitted to consumer's demand
energy markets, overall demand response can approximate to
response programs (agents), are used for the management of do-
piece-wise linear functions. Fig. 3 shows the general characteristic
mestic loads according to consumer preferences.
and important parameters of the piece-wise linear function that is
For simulation study, a Matlab/Simulink simulation model was
used for characterization of automated price-demand response
developed. The simulation model is composed of a PI controller and
systems. A proper price-demand characteristic complies with the
a demand response model under the unity negative feedback. For
case that as price increases, the total demand of system decreases.
the demand response modeling in simulation, a price-demand
This model is based on the following properties:
response model in the form of first-order variable gain dynamic
system was developed. As an illustrative simulation example, a
(i) Total demand of consumers is limited due to the finite
renewable energy integrated microgrid management scenario is
numbers of consumers in energy market. The model assumes
studied and the proposed closed loop elastic demand control
that overall electricity demand should reach a maximum
scheme is implemented according to this microgrid management
level (DH ) at a possible low price point (PL ). The point (PL ;DH )
scenario. The simulation results show that, in the case of generation
represents a saturation point where demand elasticity
fluctuations, closed loop elastic demand control can be applied to
manage energy balance automatically in smart grids. deteriorates.
(ii) Total demand of consumers never goes to zero due to the
2. Smart meters, price signals and price-demand response for critical loads and system losses. It reaches a minimum de-
mand level (DL ) at a possible high energy price point (PH ).
DSLM
The point (PH ; DL ) represents also another saturation point
where demand elasticity deteriorates.
Rapid demand response in buildings is an important factor to
preserve energy balance under fluctuating energy generation (iii) Between low energy price point (PL ) and high energy price
point (PH ), there is elastic demand region depending on
conditions. It is necessary to fulfill real time operations when a
energy price. In this region, the change of overall demand
change in generation takes place in the grid [19]. Therefore, auto-
with respect to price approximates to a deterministic curve
mation of domestic load control systems is a key point for
depending on the automation of demand side load man-
improvement of the controllability and response time of smart grid
agement of smart grids. In this region, the demand elasticity
applications. Fig. 1 depicts a conceptual illustration of smart power
rate of the market can be defined as,
systems composed of a dynamic price server, which performs
closed loop elastic demand control operations by using dynamic DL
electricity pricing, and the domestic load management system of Te ¼ (2)
DH
buildings, which employ agent based DSLM programs. The agent-
based programs performing direct load control scheme can be Here, demand elasticity rate Te takes values in the range of ½0; 1.
easily implemented in smart meters, and it can automatically For the case of Te ¼ 1, it means there is not any elasticity in overall
adjust the electricity demand of buildings by applying load shifting consumer demand. The demand is constant for any price in this
598 A. Kaygusuz / Energy 176 (2019) 596e603
Fig. 1. An schematic diagram of domestic load management concept based on dynamic electricity price broadcasting [11,21] for smart house [20] and dynamic price server
performing closed loop elastic demand control.
3. Numerical study
Fig. 4. Matlab/simulink model for closed loop elastic demand control simulation.
Fig. 5. (a) Demand response and (b) price responses from closed loop elastic demand control simulation for various PI coefficients.
behavior is very useful to obtain demand response instantly beginning of simulation, it gives an overshoot and then achieves
without having a high price volatility when generation fluctuations convergence to the alternating generation.
takes place.
Fig. 6 shows demand and price responses of control system
(kp ¼ 1; ki ¼ 2) for a generation alteration in triangular 3.2. Smart microgrids simulation scenario with local renewable
waveform. As seen in the figure, the control system can adapt generation
elastic demand to generation fluctuations by adjusting energy price
signal in accordance. Since the demand rises from zero at the This section presents an illustrative simulation example for the
closed loop elastic demand control for a renewable energy
Fig. 6. (a) Demand response and (b) price responses from the closed loop elastic demand control simulation for kp ¼ 1 and ki ¼ 2 under triangular waveform generation.
600 A. Kaygusuz / Energy 176 (2019) 596e603
Do ¼ Sr þ St (5)
It is assumed that local demands (Do ) is elastic demand, of
which the price-demand response approximates to the piece-wise
linear price-demand function introducing upper and lower bounds
(DH ;DL ) for the grid demand as defined in Fig. 3. By considering this
demand elasticity model, transmission and renewable energy
infrastructure can be planed as follow:
(i) In order to avoid energy shortages, minimum demand of
microgrid, which depends on critical loads, should be supplied
even in the inefficient hours of renewable generation
(minfDo g Sr þ St ).
(ii) In order avoid excessive renewable generation, total energy
generation should not exceed maximum demand of microgrid (Sr þ
St maxfDo g). Because, this case lead to increase installation and
maintenance costs of renewable generation system.
Considering these two constraints, the following condition Fig. 8. Hourly energy price and total demand profiles used in the simulation [22].
should be satisfied for efficient and reliable renewable energy
utilization,
simulation, the piece-wise linear price-demand response was ob-
minfDo g Sr þ St maxfDo g (6) tained from 24-h market price and demand data shown in Fig. 8.
These hourly dynamic price and demand profiles were taken from
By considering piece-wise linear price-demand function in the study of Niknam et al. [22] by scaling them to MWh levels. To
Fig. 3, upper and lower bounds of demand can be found as extract piece-wise linear price-demand response function from
minfDo g ¼ DL and maxfDo g ¼ DH . For the worst case, even if the these market profiles in Fig. 8, the hourly price and demand values
zero renewable generation (Sr ¼ 0), the critical loads of grid must were combined with respect to the time sampling ðpi ; Di Þ and a
be supplied and work steadily. So, the continuous energy coming time-independent price-demand data set was formed as fðpi ;
from transmission grid should be planned at least St ¼ DL to ensure Di Þ : i ¼ 1; 2; 3::24g. In this set, data points, which is not appropriate
energy balance in the worst case. Then, considering the both upper for a proper price-demand relation, are filtered out by excluding the
bound of generation Sr þ St DH for energy efficiency and the points that is not satisfying the proper price-demand response
worst case condition St DL for grid reliability, the renewable condition defined as,
generation capacity can be planned as,
Sr ¼ D H D L (7)
dDðtÞ dpðtÞ
This equation suggests that the capacity of fluctuating energy <0 (8)
dt dt
sources (renewable energy generation) can be planed to match the
demand elasticity range of the smart grids ðDH DL Þ in order to Then, the filtered data set was used to estimate piece-wise
maintain energy balance of microgrids persistently. linear price-demand response function of the market [23] and
For the demand elasticity modeling of the smart grid in the following function as obtained,
8
< 90 p < 0:35
DðpÞ ¼ 4:93p þ 91:72 0:35 p 4 (9)
:
72 p>4
Fig. 11. (a) Demand response and (b) price responses of closed loop elastic demand control simulation (kp ¼ 1 and ki ¼ 2) in the renewable energy integrated microgrid
scenario.
Fig. 12. (a) Demand response and (b) price responses of closed loop elastic demand control simulation (kp ¼ 1 and ki ¼ 2) under price signal broadcast delay (Lp ¼ 0:01 Hours)
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