Generation Expansion Equilibria with Predictive Dispatch Model

Fuente: arXiv
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Hauptverfasser: Dalvi, Sourabh, Biagioni, David, Anwar, Muhammad Bashar, Stephen, Gord, Frew, Bethany
Format: Preprint
Veröffentlicht: 2024
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author Dalvi, Sourabh
Biagioni, David
Anwar, Muhammad Bashar
Stephen, Gord
Frew, Bethany
author_facet Dalvi, Sourabh
Biagioni, David
Anwar, Muhammad Bashar
Stephen, Gord
Frew, Bethany
contents This paper proposes a methodology to solve generation expansion equilibrium problems by using a predictive model to represent the equilibrium in a simplified network constrained electricity market. The investment problem for each generation company (Genco) is a bi-level problem with the investment decision made in the upper level and market clearing condition in the lower level, which traditionally is represented as a Mathematical Program with Equilibrium Constraint (MPEC). The predictive model is trained for estimating the system-wide revenues for each technology type across energy, ancillary services and capacity markets given the amount of technology-specific installed capacity on the grid. The profit maximization investment problem for each Genco is solved using a global search algorithm, which uses the predictive model to evaluate the objective function. To solve for the strategic equilibrium, each Genco's problem is plugged into a diagonalization algorithm that is generally used in multi-leader, single-follower bi-level problems. The methodology presented here enables significant computational improvements while still capturing the desired market characteristics and dynamics of traditional equilibrium modeling approaches
format Preprint
id arxiv_https___arxiv_org_abs_2407_01715
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle Generation Expansion Equilibria with Predictive Dispatch Model
Dalvi, Sourabh
Biagioni, David
Anwar, Muhammad Bashar
Stephen, Gord
Frew, Bethany
Systems and Control
This paper proposes a methodology to solve generation expansion equilibrium problems by using a predictive model to represent the equilibrium in a simplified network constrained electricity market. The investment problem for each generation company (Genco) is a bi-level problem with the investment decision made in the upper level and market clearing condition in the lower level, which traditionally is represented as a Mathematical Program with Equilibrium Constraint (MPEC). The predictive model is trained for estimating the system-wide revenues for each technology type across energy, ancillary services and capacity markets given the amount of technology-specific installed capacity on the grid. The profit maximization investment problem for each Genco is solved using a global search algorithm, which uses the predictive model to evaluate the objective function. To solve for the strategic equilibrium, each Genco's problem is plugged into a diagonalization algorithm that is generally used in multi-leader, single-follower bi-level problems. The methodology presented here enables significant computational improvements while still capturing the desired market characteristics and dynamics of traditional equilibrium modeling approaches
title Generation Expansion Equilibria with Predictive Dispatch Model
topic Systems and Control
url https://arxiv.org/abs/2407.01715