Arbitraging Intraday Wholesale Energy Market Prices With Aggregations of Thermostatic Loads
By Johanna L. Mathieu, M. Kamgarpour, John Lygeros, Göran Andersson, Duncan S. Callaway. IEEE Transactions on Power Systems, 2015
198 citations recorded by the source corpus.
We investigate the potential for aggregations of residential thermostatically controlled loads (TCLs), such as air conditioners, to arbitrage intraday wholesale electricity market prices via non-disruptive load control. We present two arbitrage approaches: 1) a benchmark that gives us an optimal policy but requires local computation or real-time communication and 2) an alternative based on a thermal energy storage model, which relies on less computation/communication infrastructure, but is suboptimal. We find that the alternative approach achieves around 60%-80% of the optimal wholesale energy cost savings. We use this approach to compute practical upper bounds for savings via arbitrage with air conditioners in California's intraday energy market. We investigate six sites over four years and find that the savings range from $2-$37 per TCL per year, and depend upon outdoor temperature statistics and price volatility.
Subfields: Building and Construction, Control and Systems Engineering, Electrical and Electronic Engineering
View Paper: https://www.semanticscholar.org/paper/884d8f5154d0b76edc416fe9ebab8c05b54d9bd5
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Citations in the corpus
- A Geometric Approach to Aggregate Flexibility Modeling of Thermostatically Controlled Loads (2016, methodology): “In particular, the virtual battery modeling in [1], [2], [9] can be viewed as a special case by choosing the prototype”
- Optimal scheduling of aggregated thermostatically controlled loads with renewable generation in the intraday electricity market (2017, background): “Similar assumptions and analysis can be found in [18].”
- On the Interaction Between Aggregators, Electricity Markets and Residential Demand Response Providers (2020, background): “[9] calculate an upper bound to the profit a price-taking aggregator of TCLs may attain via arbitrage in the intraday electricity market.”
- Distributionally Robust Chance-Constrained Optimal Power Flow With Uncertain Renewables and Uncertain Reserves Provided by Loads (2017, background): “We assume that the flexible loads are aggregations of electric heat pumps, and each load aggregation can be modeled as a thermal energy storage unit [7], [8] with power capacity Pc , energy capacity Ec , and baseline power consumption PL , which all vary with (uncertain) outdoor air temperature ̃ θ”
- Getting to Zero Carbon Emissions in the Electric Power Sector (2018, background): “to some extent without affecting occupancy comfort.(11) The demand flexibility considered in these studies”