Retail Market Mechanism in Support of Differentiated Reliable Electricity Services
Siripha (Pui) Junlakarn
Department of Engineering and Public Policy Advisor: Marija Ilíc
Department of Electrical Engineering/Engineering and Public Policy
10th CMU Electricity Conference
Pre‐conference Workshop March 30, 2015
Why Differentiated Reliability?
Customer interruption cost
icecalculator.com
Standard reliability
level
A. A. Chowdhury, D. O. Koval, “Current Practices and Customer Value-Based Distribution System Reliability
Planning”, IEEE Transactions on Industry Applications, Volume 40, Issue 5, 2004, 1174 - 1182
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Why Differentiated Reliability?
Standard reliability level
Customer interruption cost
A. A. Chowdhury, D. O. Koval, “Current Practices and Customer Value-Based Distribution System Reliability
Planning”, IEEE Transactions on Industry Applications, Volume 40, Issue 5, 2004, 1174 - 1182
3
Differentiated reliable services
• Reliability = Service/Product
 Delivery service with higher reliability level.
 Resilience service • Available Technologies for Enhancing Reliability  Advanced communication and control systems
 Network reconfiguration by switching devices, (such as circuit breaker, recloser, sectionalizing switch or normally closed switch, tie switch or normally open switch)
 Distributed Generation (DG)
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5
6
Information
• DG
 Supply function of backup power
 Maximize profit of selling backup power
• DisCo
 Supply function of reliability service
 Maximize no. customers receiving high reliability
• REP
 Demand functions for backup power and delivery services
• DSO
 Clear transaction based on the information from DG, DisCo, DSO
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Communication setup for reliability •
•
•
•
•
•
•
•
•
•
DSO – DG‐1: r, ρR , ρRS
DG‐1 – DSO: PR, ρR , ρRS
DSO – DG‐2 : r, ρR , ρRS
DG‐2 – DSO : PR, ρR , ρRS
DSO – DisCo: EU, PR , eEU
DisCo – DSO: U, ρDH
DSO – REP‐1: λF, ρR , ρRS , ρDH
REP‐1 – DSO: U, WTP(ρDH), PR , WTP(ρR , ρRS)
DSO – REP‐2 : λF, ρR , ρRS , ρDH
REP‐2 – DSO : U, WTP(ρDH), PR , WTP(ρR , ρRS)
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Communication setup for reliability •
•
•
•
•
•
•
•
REP‐1 – EU‐1: λF
EU‐1 – REP‐1: WTPT
REP‐1 – EU‐3: λF
EU‐3 – REP‐1: WTPT
REP‐2 – EU‐2: λF
EU‐2 – REP‐2: WTPT
REP‐2 – EU‐4: λF
EU‐4 – REP‐2: WTPT
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DisCo – Maximize No. Customers Receiving High Reliability
∗
• Install switches at the optimal locations service quality to meet the offered level .
where bring the level of Max ∙
,
,
,
Number of customers who choose
high reliability in load point, n
Where:
,
,
1.
,
1,
0,
,
∑
.
,
,
,
,
1
,
, ,
[1]
R. Billinton and R. Allan, Reliability Evaluation of Power Systems, New York: Plenum Press, 1996.
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DisCo ‐ Service Charge,  Estimate from the DisCO’s revenue of upgrading system reliability
for recovering the costs  Annualized capital and O&M cost: ∙
∙
&
0
1
 Expected Revenue:
.
,
∗
,
,,
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REP
DisCo
5 switches
2 switches
1 switch
Incremental reduction in outage duration
(hour/year)
Incremental reduction in outage duration
(hour/year)
5 switches
2 switches
1 switch
Incremental reduction in outage duration
(hour/year)
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Test system[1]
• Reliability standard including the extended outages:  2.9 hours/year
• DisCo
 5 years of recovery period, 15% discount rate
 Higher reliability: UH,New < 2 hours/year, ∆U > 0.9
Feeder-2
CB2
12
Substation
Feeder-1
D
14
13
35
LP8 55
A
CB1
1
15
LP9
B
2
3
60
40
LP1 LP2
C
7
4
60
20
NOS
0
90
5
50
30
6
70
30
LP3 LP4
10
8
30
60
9
0
100
LP5 LP6
11
55
5
LP7
1. R. N. Allan, R. Billinton, I. Sjarief, L. Goel and K. S. So, "A Reliability Test System for Educational Purposes - Basic Distribution
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System Data and Results," IEEE Transactions on Power Systems, vol. 6, no. 2, pp. 813 - 820 , 1991.
DisCo’s supply functions
• DisCo’s supply function of each load point
U ≤ 2 hrs ∆U ≥ 0.9 hrs
3 switches
at A, B, NOS
1 switch at A
5 switches
at …, and D
5 switches
3 switches
4 switches
at …, and C
4 switches
1 switch
Incremental reduction in annual outage duration comparatively to the current
reliability level ∆U (hr)
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No DSO
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