Network Risk Limiting Dispatch: Optimal Control and Price of Uncertainty
For power system operators, this provides analytical insights into the costs of renewable uncertainty and network congestion, though the results are limited to simplified network topologies.
This work analytically quantifies the impact of uncertainty and network congestion on the cost of renewable integration in a two-stage stochastic economic dispatch problem, deriving the 'price of uncertainty' and showing that congested links can support backflows to reduce uncertainty. The approach is demonstrated on IEEE benchmark networks.
Increased uncertainty due to high penetration of renewables imposes significant costs to the system operators. The added costs depend on several factors including market design, performance of renewable generation forecasting and the specific dispatch procedure. Quantifying these costs has been limited to small sample Monte Carlo approaches applied specific dispatch algorithms. The computational complexity and accuracy of these approaches has limited the understanding of tradeoffs between different factors. {In this work we consider a two-stage stochastic economic dispatch problem. Our goal is to provide an analytical quantification and an intuitive understanding of the effects of uncertainties and network congestion on the dispatch procedure and the optimal cost.} We first consider an uncongested network and calculate the risk limiting dispatch. In addition, we derive the price of uncertainty, a number that characterizes the intrinsic impact of uncertainty on the integration cost of renewables. Then we extend the results to a network where one link can become congested. Under mild conditions, we calculate price of uncertainty even in this case. We show that risk limiting dispatch is given by a set of deterministic equilibrium equations. The dispatch solution yields an important insight: congested links do not create isolated nodes, even in a two-node network. In fact, the network can support backflows in congested links, that are useful to reduce the uncertainty by averaging supply across the network. We demonstrate the performance of our approach in standard IEEE benchmark networks.