An Optimization Decomposition Framework for Principled Multi-Timescale Market Design and Co-Optimization

美国的发电组合正在经历根本性的转变。可以根据系统需要可靠调度的较旧的火力发电机组正在被具有显著不同的运营限制的较新的可再生机组所取代。因此，现有市场运作的核心原则正在迅速演变。新的联邦能源监管委员会法规，以应对可再生能源发电引入的日益增加的变化性和不确定性，促使独立系统运营商进行根本的市场设计变化。然而，现有的市场产品的设计过程，其中包括大量的利益相关者的参与，以及一些（但不广泛）的数值测试，往往有一个特设的味道和不确定的结果。此外，由于资源同时参与在不同时间尺度上运作的几个市场，所产生的复杂相互作用导致最近设计的一些新市场和产品导致违反直觉的结果。该项目通过开发分析工具和全面的模拟设置来应对这些挑战，这些分析工具和模拟设置可以支持基于合理的理论框架的更有效的市场设计，该理论框架考虑了跨市场和时间尺度的决策相互依赖性。该项目开发了一种原则性的市场设计方法，可以评估具有可变能源和其他新兴技术的系统的电力市场产品的性能。这项研究的核心是一种新的自上而下的方法，将运营商的目标分解成所需的市场产品，同时确定多个市场的相互作用，甚至跨时间尺度，和通信的要求，共同优化。这种方法并不旨在从头开始重新定义已经存在的整个市场生态系统。相反，分解方法试图定义适合现有架构的合适的子问题，这使得新的解决方案和现有的市场设计之间的比较，并确定缺失的市场组件。为了显示其与当前市场设计挑战的相关性，所提出的方法将首先应用于协调的实时能源和监管市场的设计，随后将被增强以包括其他市场产品和时间尺度。将使用详细市场模型的广泛模拟来评估拟议市场设计的好处，这些模型将在现实的模拟设置上运行。因此，这项研究包括创新设计和算法开发的组合，这些设计和算法开发基于对现有和实际市场运营结构和业务规则的深入了解，这将通过与加州独立系统运营商，宾夕法尼亚州，泽西岛，马里兰州（PJM）市场监测机构和电力研究所的合作来了解。通过这种方式，这项工作旨在提供直接适用于现有和新的电力市场的新颖和有益的研究成果。

The United States electricity generation mix is undergoing a fundamental transformation. Older thermal generation units, which can be reliably scheduled depending on system needs, are being replaced by newer renewable-based units with substantially different operational constraints. As a result, the core principles under which existing markets operate are rapidly evolving. New Federal Energy Regulatory Commission regulations in response to the increasing variability and uncertainty that renewable generation introduces have spurred Independent System Operators to make fundamental market design changes. However, the existing design process for market products, which include heavy stakeholder involvement as well as some (but not extensive) numerical testing, often has an ad-hoc flavor and uncertain outcomes. Also, the complex interactions that arise, due to the simultaneous participation of resources in several markets operating at different timescales, have caused some of the recently designed new markets and products to lead to counter-intuitive outcomes. This work addresses these challenges by developing analytical tools and thorough simulation setups that can support more effective market designs based on a sound theoretical framework that takes into account the interdependencies of decisions across markets and time scales.This project develops a principled market design methodology that can evaluate the performance of electricity market products for systems with variable energy resources and other emerging technologies. Central to this research is a novel top-down approach that decomposes the operator objectives into desired market products while identifying multi-market interactions, even across time-scales, and communications requirements for co-optimization. This methodology does not aim to redefine from scratch the whole market ecosystem already in place. Instead, the decomposition approach seeks to define suitable subproblems that fit within the existing architecture, which allows comparisons between the new solution and existing market designs, and the identification of missing market components. To show its relevance to current market design challenges, the proposed approach will be first applied in the design of coordinated real-time energy and regulation markets, and subsequently, be augmented to include additional market products and timescales. The benefits of the proposed market designs will be assessed using extensive simulations of detailed market models that will be run on realistic simulation setups. Thus this research includes a mix of innovative design and algorithmic development grounded in deep knowledge of existing and practical market operation structures and business rules, which will be informed by collaborations with the California Independent System Operator, the Pennsylvania, Jersey, Maryland (PJM) market monitor, and the Electric Power Research Institute. In this way, this work intends to provide novel and beneficial research results that are directly applicable to existing and new electricity markets.