Introduction to the Economics, Markets and Policy Minitrack, Electric Energy Minitrack
2016 49th Hawaii International Conference on System Sciences (HICSS)
Environmental concerns regarding global warming and the adverse health effects of emissions produced by fossil fuel generation have led to a greater reliance on renewable sources of generation that are inherently variable and uncertain. This trend is accompanied by increased proliferation of distributed resources, storage and smart grid technologies that facilitate demand response and greater observability of the grid. As a result the electric power industry faces new challenges in planning and
... operation of the power system that require new market mechanisms and computational optimization tools to achieve productive and allocative efficiencies. Flexibility of the conventional generation resource portfolio as well as demand side flexibility are key elements of a new electricity system paradigm that can accommodate massive integration of renewables and distributed resources. Harnessing such flexibility in planning and operations imposes vast computational challenges due to the increased numbers of decision variables and the need to account for uncertainty and respond adaptively to rapidly changing conditions. Hence the central theme of this mini track revolves around identifying requirement and remuneration schemes for flexibility, characterizing market products and public policies that incentivizes flexibility and optimizing resource use to meet flexibility needs so as to assure system reliability in face of uncertainty at least cost. The minitrack consists of two sessions. The first session focuses on identifying requirements and market constructs that will facilitate the mobilization, procurement and deployment of resources that provide flexibility. Incentivizing investment and market participation by diverse resources on the supply and demand side who can provide flexibility economically requires new market mechanisms and operating procedures. This session facilitates comprehensive discussion of market constructs for flexibility procurement and dispatch in electric energy systems. The second session focuses on computational aspects of optimizing the planning, operation and procurement of a diverse resource portfolio, including voltage stability limits, outage coordination, transmission planning and simulation tools for assessing the implications of environmental policies. The evolution of the Electric Power system with increased data and information being available for planning, operations and control is presenting new challenges in optimization and computation. Furthermore, the proliferation of intermittent and variable resources, distributed generation, storage and demand response requires new analytic tools capable of handling far greater levels of both temporal and spatial data and dealing with uncertainty and variability on the supply and demand side. On the other hand recent progress in optimization theory and software development complimented by dramatic increases in the capability of low cost computer hardware opens the door for a new generation of software for Electric Power Systems that can address the above challenges.