Abstract:With the implementation of the integrated electricity and gas market (IEGM), the smart energy hubs (SEHs) tend to participate in the market clearing for the optimization of the energy purchase portfolio. Meanwhile, the renewable energy is mushrooming at different scales of energy systems, which can introduce utility-level and distribution-level uncertainties to the operation of the IEGM and SEHs, respectively. Considering the impacts of divergent uncertainties, there exist complicated interactions between the IEGM clearing and the robust bidding of SEHs. The lack of consideration of such interactions may lead to inaccurate modeling of the IEGM clearing and cause potential market inefficiency. To handle this, a bi-level robust clearing framework of the IEGM considering the robust bidding of SEHs is proposed, which simultaneously considers the impacts of utility-level and distribution-level uncertainties. The proposed framework is partitioned into two levels. The upper level is the robust clearing mechanism of the IEGM. At this level, the uncertainty locational marginal electricity and gas prices are derived considering the utility-level uncertainties and the uncertainty-based bidding of SEHs. Given the price signals deduced in the upper level, the lower-level robust bidding of the SEH seeks the optimal bidding strategies while hedging against distribution-level uncertainties. To address the proposed framework, an effective algorithm combining column-and-constraint generation (C&CG) algorithm with the best-response decomposition (BRD) algorithm is formulated. The devised algorithm can efficiently solve the individual robust optimization model and coordinate the interaction of two levels. Numerical experiments are carried out to verify the effectiveness of the proposed framework. Moreover, the impacts of uncertainties on the market clearing results along with the optimal biddings of SEHs are further demonstrated within the proposed framework.

Abstract:Peer-to-peer (P2P) energy trading in active distribution networks (ADNs) plays a pivotal role in promoting the efficient consumption of renewable energy sources. However, it is challenging to effectively coordinate the power dispatch of ADNs and P2P energy trading while preserving the privacy of different physical interests. Hence, this paper proposes a soft actor-critic algorithm incorporating distributed trading control (SAC-DTC) to tackle the optimal power dispatch of ADNs and the P2P energy trading considering privacy preservation among prosumers. First, the soft actor-critic (SAC) algorithm is used to optimize the control strategy of device in ADNs to minimize the operation cost, and the primary environmental information of the ADN at this point is published to prosumers. Then, a distributed generalized fast dual ascent method is used to iterate the trading process of prosumers and maximize their revenues. Subsequently, the results of trading are encrypted based on the differential privacy technique and returned to the ADN. Finally, the social welfare value consisting of ADN operation cost and P2P market revenue is utilized as a reward value to update network parameters and control strategies of the deep reinforcement learning. Simulation results show that the proposed SAC-DTC algorithm reduces the ADN operation cost, boosts the P2P market revenue, maximizes the social welfare, and exhibits high computational accuracy, demonstrating its practical application to the operation of power systems and power markets.

Abstract:With the development of the carbon markets (CMs) and electricity markets (EMs), discrepancies in prices between the two markets and between two time periods offer profit opportunities for generation companies (GenCos). Motivated by the carbon option and Black-Scholes (B-S) model, GenCos are given the right but not the obligation to trade carbon emission allowances (CEAs) and use instruments to hedge against price risks. To model the strategic behaviors of GenCos that capitalize on these cross-market and cross-time opportunities, a multi-market trading strategy that incorporates option-jointed daily trading and reinforcement learning-jointed weekly continuous trading are modeled. The daily trading is built with a bi-level structure, where a profit-oriented bidding model that jointly considers both the optimal CEA holding shares and the best bidding curves is developed at the upper level. At the lower level, in addition to market clearing models of the day-ahead EM and auction-based CM, a B-S model that considers carbon trading asynchronism and option pricing is constructed. Then, by expanding the daily trading, the weekly continuous trading is modeled and solved using reinforcement learning. Binary expansion and strike-to-spot price ratio are utilized to address the nonlinearity. Finally, case studies on an IEEE 30-bus system are conducted to validate the effectiveness of the proposed trading strategy. Results show that the proposed trading strategy can increase GenCo profits by influencing market prices and leveraging carbon options.

Abstract:Peer-to-peer (P2P) energy trading provides a promising solution for integrating distributed microgrids (MGs). However, most existing research works on P2P energy trading among MGs ignore the influence of the dynamic network usage fees imposed by the distribution system operator (DSO). Therefore, a method of P2P energy trading among MGs based on the optimal dynamic network usage fees is proposed in this paper to balance the benefits of DSO. The interaction between DSO and MG is formulated as a Stackelberg game, in which the existence and uniqueness of optimal dynamic network usage fees are proven. Additionally, the optimal dynamic network usage fees are obtained by transforming the bi-level problem into single-level mixed-integer quadratic programming using Karush-Kuhn-Tucker conditions. Furthermore, the underlying relationship among optimal dynamic network usage fees, electrical distance, and power flow is revealed, and the mechanism of the optimal dynamic network usage fee can further enhance P2P energy trading among MGs. Finally, simulation results on an enhanced IEEE 33-bus system demonstrate that the proposed mechanism achieves a 17.08% reduction in operation costs for MG while increasing DSO revenue by 15.36%.

Abstract:The virtual power plant (VPP) facilitates the coordinated optimization of diverse forms of electrical energy through the aggregation and control of distributed energy resources (DERs), offering as a potential resource for frequency regulation to enhance the power system flexibility. To fully exploit the flexibility of DER and enhance the revenue of VPP, this paper proposes a multi-temporal optimization strategy of VPP in the energy-frequency regulation (EFR) market under the uncertainties of wind power (WP), photovoltaic (PV), and market price. Firstly, all schedulable electric vehicles (EVs) are aggregated into an electric vehicle cluster (EVC), and the schedulable domain evaluation model of EVC is established. A day-ahead energy bidding model based on Stackelberg game is also established for VPP and EVC. Secondly, on this basis, the multi-temporal optimization model of VPP in the EFR market is proposed. To manage risks stemming from the uncertainties of WP, PV, and market price, the concept of conditional value at risk (CVaR) is integrated into the strategy, effectively balancing the bidding benefits and associated risks. Finally, the results based on operational data from a provincial electricity market demonstrate that the proposed strategy enhances comprehensive revenue by providing frequency regulation services and encouraging EV response scheduling.

Abstract:Rural electrification is a crucial component of the power system that requires urgent innovation and transformation to enhance electrification levels. However, various challenges hinder the progress in rural electrification, primarily due to remote locations and unique consumption patterns. To effectively coordinate the local energy distribution, an energy management framework utilizing peer-to-peer (P2P) based interactive operations is proposed, which minimizes the reliance on long-distance transmission while enhancing the rural electrification level. The proposed P2P-based energy management framework incorporates various distributed generation resources across rural areas, facilitating direct energy transactions between neighboring community-based villages. Additionally, the P2P energy trading is modeled as a Nash bargaining (NB) problem, which accounts for the allocation of network loss costs and operational state of the rural distribution network. To protect the privacy of individual villages, an improved adaptive alternating direction method of multipliers (AADMM) is proposed to solve the NB problem. The AADMM utilizes a local curvature approximation scheme during parameter updates, allowing for automatic adjustments of the fixed penalty parameter within the standard alternating direction method of multipliers (ADMM). This enhancement improves the convergence rates without requiring central oversight. Simulation results demonstrate significant reductions in operational costs for both the overall network and individual village participants. The proposed P2P-based energy management framework also enhances the bus voltage stability and reduces the line transmission power, thereby further enhancing rural electrification levels. The adaptability and extensibility of this framework are further validated using the IEEE 33-bus and 118-bus distribution systems. Additionally, the AADMM shows higher convergence rates compared with the standard ADMM.

Abstract:This paper presents a holistic pricing and distributed scheduling framework for multi-microgrid system (MMGS) that considers the supply‒demand relationships of the coupled electricity‒carbon market to promote collaborative market trading within the MMGS for economic and environmental benefit improvement. Initially, an operation model of each microgrid is developed by synthetically considering electricity-carbon operational constraints related to generation units and energy storage units. Then, a collaborative optimization strategy of the MMGS is established according to the Nash bargaining game (NBG) model with the objective of maximizing overall operational revenue. To determine the trading schedule, an accelerated prediction-correction-based alternating direction method of multipliers (PCB-ADMM) algorithm is employed to derive the optimal scheduling strategy of MMGS in a distributed manner, ensuring the privacy preservation of individual microgrids. For electricity-carbon pricing, a supply-demand ratio (SDR) based pricing strategy is proposed to dynamically update electricity and carbon allowance prices, which fundamentally guides and incentivizes each microgrid to trade within the MMGS preferentially rather than with an upstream distribution network. Finally, a study case verifies the effectiveness of the proposed framework in enhancing the operation economy and environmental friendliness of the entire MMGS.

Abstract:The difficulty in capital recovery for distributed renewable energy operators (DREOs) and the high charging costs at electric vehicle charging stations (EVCSs) have long been significant challenges in power systems. Collaborative operation of DREOs and EVCSs can effectively address these challenges, yet few studies have approached incentivizing collaboration from the perspective of profit allocation. Therefore, this paper proposes a fair and efficient profit allocation method. Incorporating the Gauss-Legendre quadrature formula into the Aumann-Shapley value (GL-AS) method enables efficient calculation of the profit allocation of cooperative members. However, existing literature only discusses the profit allocation method of conventional power generation units, limiting its applicability. This paper addresses the problem of energy storage system (ESS) switching between charging and discharging in any time interval and the time-varying problem of renewable energy power output, thereby ensuring the efficiency of the solution process. Furthermore, a novel profit allocation adjustment model is provided through the adoption of triangular fuzzy comprehensive evaluation (TFCE). Finally, the effectiveness of the proposed profit allocation method is validated through numerical simulations in various scenarios.

Abstract:The proliferation of electric vehicles (EVs) introduces transformative opportunities and challenges for the stability of distribution networks. Unregulated EV charging will further exacerbate the inherent three-phase imbalance of the power grid, while regulated EV charging will alleviate such imbalance. To systematically address this challenge, this study proposes a two-stage bidding strategy with dispatch potential of electric vehicle aggregators (EVAs). By constructing a coordinated framework that integrates the day-ahead and real-time markets, the proposed two-stage bidding strategy reconfigures distributed EVA clusters into a controllable dynamic energy storage system, with a particular focus on dynamic compensation for deviations between scheduled and real-time operations. A bi-level Stackelberg game resolves three-phase imbalance by achieving Nash equilibrium for inter-phase balance, with Karush-Kuhn-Tucker (KKT) conditions and mixed-integer second-order cone programming (MISOCP) ensuring feasible solutions. The proposed coordinated framework is validated with different bidding modes includes independent bidding, full price acceptance, and cooperative bidding modes. The proposed two-stage bidding strategy provides an EVA-based coordinated scheduling solution that balances the economic efficiency and phase stability in electricity market.

Abstract:Peer-to-peer (P2P) energy trading enables an efficient regulation of distributed renewable energy among prosumers, implicitly promoting low-carbon operation. This study proposes a novel P2P energy trading scheme with coupled electricity-carbon (E/C) market that co-optimizes both power and carbon emission flows. To facilitate the low-carbon operations in the market, we introduce a prosumer-driven carbon-aware distribution locational marginal price (PDC-DLMP) to serve as a pricing signal for the distribution system operator (DSO). To efficiently determine the optimal trading solutions, we adopt a two-layer data-driven approach. The first layer employs a reinforcement learning algorithm named multi-agent twin-delayed deep deterministic policy gradient (MATD3); the second layer uses a deep neural network (DNN) driven surrogate model, which is designed to map the PDC-DLMP signals, thereby eliminating the need for direct DSO intervention during market operation. This approach protects the physical model parameters of the distribution network and ensures multi-level privacy protection. Simulation results validate the effectiveness of the proposed P2P energy trading scheme with coupled E/C market, demonstrating its ability to achieve both reduced carbon emissions and lower operational costs for microgrid prosumers.

Abstract:This paper captures an engaging— and at times heated—Power-Globe (PG) discussion of evolving definitions of smart grid technologies. The exchange took place between December 2024 and January 2025. The primary objective of this paper is to clarify some of the ambiguities surrounding the term “ smart grid” over the past two decades, as highlighted in the spirited PG debate. “ Smart grid” has sometimes been advocated as a panacea to resolve the tension between competing objectives for the provision of electricity (specifically, making it reliable, clean, and affordable). This paper examines the term “ smart grid” in terms of raw technical functionalities, applications, and use cases, some of which may get closer than others to meeting the aspirational promises. While smart technology should expand our menu of options, it will not absolve us of the need to make hard decisions.

Abstract:In the competitive energy market, energy retailers are facing the uncertainties of both energy price and demand, which requires them to formulate reasonable energy purchasing and selling strategies for improving their competitiveness in this market. Particularly, the attractive multi-energy retail packages are the key for retailers to increase their benefit. Therefore, combined with incentive means and price signals, five types of multi-energy retail packages such as peak-valley time-of-use (TOU) price package and day-night bundled price package are designed in this paper for retailers. The iterative interactions between retailers and end-users are modeled using a bi-level model of stochastic optimization based on multi-leader multi-follower (MLMF) Stackelberg game, in which retailers are leaders and end-users are followers. Retailers make decisions to maximize the profit considering the conditional value at risk (CVaR) while end-users optimize the satisfaction of both energy comfort and economy. Besides, a distributed algorithm is proposed to obtain the Nash equilibrium of above MLMF Stackelberg game model while the particle swarm optimization (PSO) algorithm and CPLEX solver are applied to solve the optimization model for each participant (retailer or end-user). Numeral results show that the designed retail packages can increase the overall profit of retailers, and the overall satisfaction of industrial users is the highest while that of residential users is the lowest after game interaction.

Abstract:In response to the increasing penetration of volatile and uncertain renewable energy, the regional transmission organizations (RTOs) have been recently focusing on enhancing the models of pump storage hydropower (PSH) plants, which are one of the key flexibility assets in the day-ahead (DA) and real-time (RT) markets, to further boost their flexibility provision potentials. Inspired by the recent research works that explored the potential benefits of excluding PSHs ’ cost-related terms from the objective functions of the DA market clearing model, this paper completes a rolling RT market scheme that is compatible with the DA market. Then, with the vision that PSHs could be permitted to submit state-of-charge (SOC) headrooms in the DA market and to release them in the RT market, this paper uncovers that PSHs could increase the total revenues from the two markets by optimizing their SOC headrooms, assisted by the proposed tri-level optimal SOC headroom model. Specifically, in the proposed tri-level model, the middle and lower levels respectively mimic the DA and RT scheduling processes of PSHs, and the upper level determines the optimal headrooms to be submitted to the RTO for maximizing the total revenue from the two markets. Numerical case studies quantify the profitability of the optimal SOC headroom submissions as well as the associated financial risks.

Abstract:The scale of distributed energy resources is increasing, but imperfect business models and value transmission mechanisms lead to low utilization ratio and poor responsiveness. To address this issue, the concept of cleanness value of distributed energy storage (DES) is proposed, and the spatiotemporal distribution mechanism is discussed from the perspectives of electrical energy and cleanness. Based on this, an evaluation system for the environmental benefits of DES is constructed to balance the interests between the aggregator and the power system operator. Then, an optimal low-carbon dispatching for a virtual power plant (VPP) with aggregated DES is constructed, wherein energy value and cleanness value are both considered. To achieve the goal, a green attribute labeling method is used to establish a correlation constraint between the nodal carbon potential of the distribution network (DN) and DES behavior, but as a cost, it brings multiple nonlinear relationships. Subsequently, a solution method based on the convex envelope (CE) linear reconstruction method is proposed for the multivariate nonlinear programming problem, thereby improving solution efficiency and feasibility. Finally, the simulation verification based on the IEEE 33-bus DN is conducted. The simulation results show that the multidimensional value recognition of DES motivates the willingness of resource users to respond. Meanwhile, resolving the impact of DES on the nodal carbon potential can effectively alleviate overcompensation of the cleanness value.

Abstract:The offering strategy of energy storage in energy and frequency response (FR) markets needs to account for country-specific market regulations around FR products as well as FR utilization factors, which are highly uncertain. To this end, a novel optimal offering model is proposed for stand-alone price-taking storage participants, which accounts for recent FR market design developments in the UK, namely the trade of FR products in time blocks, and the mutual exclusivity among the multiple FR products. The model consists of a day-ahead stage, devising optimal offers under uncertainty, and a real-time stage, representing the storage operation after uncertainty is materialized. Furthermore, a concrete methodological framework is developed for comparing different approaches around the anticipation of uncertain FR utilization factors (deterministic one based on expected values, deterministic one based on worst-case values, stochastic one, and robust one), by providing four alternative formulations for the real-time stage of the proposed offering model, and carrying out an out-of-sample validation of the four model instances. Finally, case studies employing real data from UK energy and FR markets compare these four instances against achieved profits, FR delivery violations, and computational scalability.

Abstract:The vehicle-to-grid (V2G) technology enables the bidirectional power flow between electric vehicle (EV) batteries and the power grid, making EV-based mobile energy storage an appealing supplement to stationary energy storage systems. However, the stochastic and volatile charging behaviors pose a challenge for EV fleets to engage directly in multi-agent cooperation. To unlock the scheduling potential of EVs, this paper proposes a source storage cooperative low-carbon scheduling strategy considering V2G aggregators. The uncertainty of EV charging patterns is managed through a rolling-horizon control framework, where the scheduling and control horizons are adaptively adjusted according to the availability periods of EVs. Moreover, a Minkowski-sum based aggregation method is employed to evaluate the scheduling potential of aggregated EV fleets within a given scheduling horizon. This method effectively reduces the variable dimension while preserving the charging and discharging constraints of individual EVs. Subsequently, a Nash bargaining based cooperative scheduling model involving a distribution system operator (DSO), an EV aggregator (EVA), and a load aggregator (LA) is established to maximize the social welfare and improve the low-carbon performance of the system. This model is solved by the alternating direction method of multipliers (ADMM) algorithm in a distributed manner, with privacy of participants fully preserved. The proposed strategy is proven to achieve the objective of low-carbon economic operation.

Abstract:The push for renewable energy emphasizes the need for energy storage systems (ESSs) to mitigate the unpredictability and variability of these sources, yet challenges such as high investment costs, sporadic utilization, and demand mismatch hinder their broader adoption. In response, shared energy storage systems (SESSs) offer a more cohesive and efficient use of ESS, providing more accessible and cost-effective energy storage solutions to overcome these obstacles. To enhance the profitability of SESSs, this paper designs a multi-time-scale resource allocation strategy based on long-term contracts and real-time rental business models. We initially construct a life cycle cost model for SESS and introduce a method to estimate the degradation costs of multiple battery groups by cycling numbers and depth of discharge within the SESS. Subsequently, we design various long-term contracts from both capacity and energy perspectives, establishing associated models and real-time rental models. Lastly, multi-time-scale resource allocation based on the decomposition of user demand is proposed. Numerical analysis validates that the business model based on long-term contracts excels over models operating solely in the real-time market in economic viability and user satisfaction, effectively reducing battery degradation, and leveraging the aggregation effect for SESS can generate an additional increase of 10.7% in net revenue.

Abstract:To reduce the difficulty and enhance the enthusiasm of private-owned electric vehicles (EVs) to participate in frequency regulation ancillary service market (FRASM), a decision aid model (DAM) is proposed. This paper presents three options for EV participating in FRASM, i.e., the base mode (BM), unidirectional charging mode (UCM), and bidirectional charging/discharging mode (BCDM), based on a reasonable simplification of users’ participating willingness. In BM, individual EVs will not be involved in FRASM, and DAM will assist users to set the optimal charging schemes based on travel plans under the time-of-use (TOU) price. UCM and BCDM are two modes in which EVs can take part in FRASM. DAM can assist EV users to create their quotation plan, which includes hourly upper and lower reserve capabilities and regulation market mileage prices. In UCM and BCDM, the difference is that only the charging rate can be adjusted in the UCM, and the EVs in BCDM can not only charge but also discharge if necessary. DAM can estimate the expected revenue of all three modes, and EV users can make the final decision based on their preferences. Simulation results indicate that all the three modes of DAM can reduce the cost, while BCDM can get the maximum expected revenue.

Abstract:The rapid development of the power system requires high reliability and real-time situational awareness of power equipment. The current agent-based condition-monitoring perception mode is not suitable for widely distributed power equipment due to the potential of single-point failure and high communication and data costs. Therefore, the technical development path of the power equipment perception mode is analyzed based on the development trend of the future power system. The concept of intelligent power equipment (IPE) is introduced, which combines online sensing, data mining, remote communication, and primary and secondary fusion technologies to develop an intelligent object that can realize autonomous situational awareness. IPE can actively interact with the control center and operation and maintenance (O&M) personnel according to its situation. This gives the power company an efficient and comprehensive perception of the equipment. Then, based on the actual situation of the power grid and emerging technology research directions, the challenges faced by each key technology supporting IPE and the corresponding technology enhancement solutions are presented. In addition, the O&M method applicable to IPE is discussed, which achieves proactive maintenance and prognosis management through autonomous equipment perception. Finally, the feasibility and effectiveness of IPE are verified by the performance of current IPE applications in an actual power grid.