Optimal Dispatching of Renewable and Demand Response Resources
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Solution Overview
Problem
Current utility generation dispatching policies do not effectively integrate demand response and distributed renewable generation for risk management and financial optimization in energy grid operations.
Innovation Solution
A system and method that determines an optimal dispatching policy for energy generation capacity by integrating renewable resources and demand response, using mixed integer programming to minimize operational costs while controlling risk, and incentivizing end-users to reduce energy consumption through rebate signals.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If traditional thermal generators are used for power generation, then reliable base load supply is maintained, but operational costs and carbon emissions increase
Solution Approach 1:
The patent combines multiple generation sources (thermal, renewable, demand response) into a unified dispatching system that optimizes their coordinated operation. This merging allows the system to maintain reliability while reducing operational costs by strategically using lower-cost renewable and demand response resources when available.
Solution Approach 2:
The dispatching system dynamically adjusts the mix of generation sources based on real-time conditions including renewable availability, demand response potential, and system requirements. This dynamic optimization enables the system to minimize operational costs while maintaining reliable base load supply through adaptive resource allocation.
2Loss of energy
If renewable energy sources are integrated into the grid, then operational costs are reduced, but intermittency and supply uncertainty increase
Solution Approach 1:
The patent introduces demand response as an intermediary resource that bridges the gap between intermittent renewable supply and stable demand requirements. By incentivizing load reduction during periods of low renewable availability, the system maintains supply stability while maximizing renewable utilization, thereby reducing operational costs without sacrificing reliability.
Solution Approach 2:
The system changes the operational parameters of demand in response to renewable availability. By dynamically adjusting load levels through demand response programs, the system adapts to the intermittency of renewable sources, maintaining supply stability while capturing the cost benefits of renewable energy integration.
3Adaptability or versatility
If demand response programs are implemented, then operational flexibility and risk control improve, but system complexity increases
Solution Approach 1:
The dispatching system is designed to perform multiple functions simultaneously: optimizing generation dispatch, managing demand response, controlling risk, and minimizing costs. This universal approach consolidates what would otherwise require separate systems into a single integrated platform, managing complexity while maximizing operational flexibility and risk control capabilities.
4Reliability
If spinning reserve capacity is maintained for risk management, then supply security is ensured, but operational costs increase
Solution Approach 1:
The patent uses demand response as an intermediary to replace traditional spinning reserve. By incentivizing load reduction during critical periods, the system achieves supply security without requiring expensive standby generation capacity, thereby reducing operational costs while maintaining reliability through demand-side management.
Data Source
AI summary
System and method of solving, in a single-period, an optimal dispatching problem for a network of energy generators connected via multiple transmission lines, where it is sought to find the lowest operational cost of dispatching of various energy sources to satisfy demand. The model includes traditional thermal resources and renewable energy resources available generation capabilities within the grid. The method considers demand reduction as a virtual generation source that can be dispatched quickly to hedge against the risk of unforeseen shortfall in supply. Demand reduction is dispatched in response to incentive signals sent to consumers. The control options of the optimization model consist of the dispatching order and dispatching amount energy units at generators together with the rebate signals sent to end-users at each node of the network under a demand response policy. Numerical experiments based on an analysis of representative data illustrate the effectiveness of demand response as a hedging option.