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

美国的发电结构正在经历根本性的转变。可以根据系统需要进行可靠调度的较老的热电机组正在被具有显著不同运行限制的较新的可再生能源机组所取代。因此，现有市场运行所遵循的核心原则正在迅速演变。针对可再生能源发电带来的越来越多的变异性和不确定性，联邦能源管理委员会出台了新的法规，促使独立系统运营商做出根本性的市场设计变化。然而，现有的市场产品设计过程，包括大量的利益相关者参与以及一些(但不是广泛的)数字测试，往往具有特殊的味道和不确定的结果。此外，由于在不同时间运行的几个市场中的资源同时参与而产生的复杂相互作用，导致了一些最近设计的新市场和产品导致了与直觉相反的结果。这项工作通过开发分析工具和全面的模拟设置来应对这些挑战，这些工具和模拟设置可以基于考虑到跨市场和时间尺度决策的相互依赖的健全理论框架来支持更有效的市场设计。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，该方法将运营商的目标分解为所需的市场产品，同时确定多市场互动，甚至跨越时间尺度，并确定共同优化的通信需求。这种方法的目的并不是从头开始重新定义已经存在的整个市场生态系统。相反，分解方法寻求定义适合现有体系结构的适当子问题，这允许在新解决方案和现有市场设计之间进行比较，并识别缺失的市场组成部分。为了显示其与当前市场设计挑战的相关性，建议的方法将首先应用于协调的实时能源和监管市场的设计，随后将扩大到包括更多的市场产品和时间尺度。拟议的市场设计的好处将通过对详细的市场模型进行广泛的模拟来评估，这些模型将在现实的模拟设置中运行。因此，这项研究包括基于对现有和实用的市场运营结构和业务规则的深入了解而进行的创新设计和算法开发的组合，这些规则将通过与加利福尼亚州独立系统运营商、宾夕法尼亚州、泽西州、马里兰州(PJM)市场监测器和电力研究所的合作而获得信息。通过这种方式，这项工作旨在提供新的和有益的研究成果，直接适用于现有的和新的电力市场。

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.