Perspectives on Power System Optimization Applications Dr. David Sun, FIEEE Chief Scientist, The Glarus Group [email protected]; 425.614.9817 

Content • Optimization: the basics • State of the art in power industry deployment • Steps from research to deplopyment • Future R&D The Glarus Group, Inc. 

The Glarus Group, Inc. 

–Objective: : –Decisions: –Constraints: Optimization Framework The Glarus Group, Inc. 

P1: Optimal Power Flow (OPF) – Objective: Minimize production cost (or losses) – Decisions: P & Q controllers (gen MW/MVAr,…) – Constraints: • powerflow balance (nodal or system) • thermal and voltage/VA limits • contingency security constraints P2: Unit Commitment/Economic Dispatch P3: Automatic feeder configuration P4: Market-Clearing P5: ……many more…. Optimization Problem Examples: The Glarus Group, Inc. 

• The obvious – Real-time system operations: economics, security… – Forward resource (generation) scheduling • The less obvious – Auditability & transparency – Decision support • The implied – Help me do my job better, and conversely…..….. Why Optimization Applications? What benefits to utility users? The Glarus Group, Inc. 

Optimization Applications Deployment Current status • Accepted by Industry Users in Control Centers: – Transmission grid (EMS): SE, OPF, UC,… – Wholesale market (MMS): Market Clearing (SCUC/ED, FTR) – Distribution grid (DMS): VVC, Feeder Switching (AFR, FISR) • Requirements continue for expanded optimization applications – New problems, models – New solution algorithms, – and more… The Glarus Group, Inc. 

Grid optimization application Problem characteristics • Mildly non-linear AC powerflow • Many inequality constraints (Nbr x Nctg), few binding • Binding inequalities for (contingency) grid security typically have dense rows of constraints • Integer constraints often critical (e.g. SCUC, AFR) • Practical importance of special (ill) conditions – Infeasibility: – Discontinuity – Degeneracy (primal & dual) The Glarus Group, Inc. 

Grid optimization application Solution requirements • Require primal (MW) and dual (price) solutions • Reliably produce actionable results (even when strict mathematics struggles) • Close-loop 5-min RT Dispatch cycles • Consistency, transparency, auditability can be critical • Complex problems typically analyzed with human-in- the-loop using sophisticated UI. • IT/OT Integration required for production deployment The Glarus Group, Inc. 

• Temporal Modeling & Coordination: – e.g. DA Commitment, RT Dispatch, AGC • Spatial Modeling & Coordination – Transportation of services (deliverability) – Locational model (LMP+) • Complex coupling constraints – Scalability impacts on decomposition • Business decision support Critical problem/solution attributes The Glarus Group, Inc. 

Path From Research to Deployment: The art and science of optimization Optimz Solver Data Prep Assess Solution Math Model Business Problem Conceptual Formulation Precision Performance Decision The Glarus Group, Inc. 

• Comprehensive marketplace for electricity – Products/services, valuation, competitive choices • Path of transformation – V1: classic utilities, strong physical foundation – V2: wholesale markets (e.g. PJM, CA ISO) with coordinated physical & commercial operation – V3:(emerging): DER business & technology enable customer/aggregator choices in bulk grid wholesale and distribution grid retail markets Power Industry Transformation The Glarus Group, Inc. 

• DER is a major game changer – Tremendous progress in technology and economics – Uncertain financial and grid operation impacts – Can be win-win for all • DER characteristics – Diverse - physical, operational, commercial…. – Can produce/consume multiple services – Local control and intelligence – Complex aggregation model and transaction protocols DER in Energy-Ecosystem The Glarus Group, Inc. 

• Market for electricity services to enable sustainable DER business – Price and exchange value-based services – Leverage transmission and distribution sectors for hierarchical controls and markets for different types of services • Platform to enable phased expansion of new services that reflect: – Technology advances – Regulatory and business reform R&D: Technical foundation for DER business development The Glarus Group, Inc. 

Thank You David Sun 425.614.9817 

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MISO Markets and Products • Multiple Markets – Day-Ahead Market (DAM) – Forward Reliability Adequacy Commitment (FRAC) – Intra-Day Look Ahead Commitment (LAC) – Real-time Market (RTM) – Financial Transmission Right (FTR) • Multiple Products – Energy – Ancillary Services (Regulation, Spinning, Supplemental) – Ramp Products The Glarus Group, Inc. 19