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“31761 - Renewables in Electricity Markets”.
Introduction
Pierre Pinson
Technical University of Denmark.
DTU Electrical Engineering - Centre for Electric Power and Energymail: [email protected] - webpage: www.pierrepinson.com
29 January 2018
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Outline
1 Our playground and the problem
2 Who are we, who are you?
3 Course contents and evaluation
4 Readings
5 Practical information
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1 Our playground and the problem
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Our playground: electricity markets
Scandinavia(as a representative EU-type market):
Go visit: Nord Pool - zonal prices
Midwest US(as a representative US-type market):
Go visit: MISO market - LMP contour map
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Europe: all in it together!
Go visit: ENTSO-E transparency platform5 / 34
Here comes the mess: wind (and solar) power!
Total: 154 GW (Dec. 2015, source: European Wind Energy Association - EWEA)
Worldwide: 560 GW for wind energy, and 350 GW for solar energy6 / 34
Denmark at the forefront
Early 2016, articles appeared in the The Guardian(UK), The Huffington Post (US), phys.org, etc.
Denmark was breaking its own record with 42% ofelectric energy consumption covered by wind over2015!
Well... the record was broken againin 2017, with nearly 44% ofconsumption covered by wind.
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Denmark at the forefront
Early 2016, articles appeared in the The Guardian(UK), The Huffington Post (US), phys.org, etc.
Denmark was breaking its own record with 42% ofelectric energy consumption covered by wind over2015!
Well... the record was broken againin 2017, with nearly 44% ofconsumption covered by wind.
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Where is this going...
Opinions?
If you do not have much opinions yourself, a lot of other people actually do... e.g.,
T.D. Couture, D. Jacobs (2013). The Future of Electricity Markets. Renewable Energy World
... as well as regular articles in local and more global media like The Economist for instance.
And if you are eager to read more, Eurelectric and the Florence School of Regulation just releasedan open e-book on future electricity markets: Design the Electricity Market(s) of the future
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Where is this going...
Opinions?
If you do not have much opinions yourself, a lot of other people actually do... e.g.,
T.D. Couture, D. Jacobs (2013). The Future of Electricity Markets. Renewable Energy World
... as well as regular articles in local and more global media like The Economist for instance.
And if you are eager to read more, Eurelectric and the Florence School of Regulation just releasedan open e-book on future electricity markets: Design the Electricity Market(s) of the future
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“Suggested” pre-requisites
On the energy side:
1 42003 - Energy Economics, Markets and Policies
2 42002 - Modelling and Analysis of Sustainable Energy Systems using OperationsResearch
3 31765 - Optimization in Modern Power Systems
And on the math/stat/opimization side (a nice plus):
1 02417 - Time Series Analysis
2 42123 - Optimization in Finance
3 02450 - Introduction to Machine Learning and Data Modelling
plus potentially others... like 31730 - Electric Power Engineering, Fundamentals
as well as a little flair for programming!
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What do you want to learn from this course?
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Learning objectives
A student who has met the objectives of the course will be able to:
1 Explain the fundamentals of electricity markets
2 Describe the impact of renewables on electricity markets
3 Collect and analyse datasets of relevance in electricity markets
4 Model and forecast relevant quantities, e.g., load, prices, or renewable energygeneration
5 Design and apply offering strategies in electricity markets
6 Write and solve relevant optimization problems for market-clearing and offeringstrategies
7 Analyse and present the results to a broad audience
Ambitious... but feasible!
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2 Who are we, who are you
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In brief
Pierre Pinson
ProfessorDTU ElektroCentre for Electric Power and EnergyHead of Energy Analytics & Markets
Visiting researcher/Visiting Professor at
1 University of Cambridge, Isaac Newton Institute (UK, 2019)
2 Ecole Normale Superieure (France, 2016)
3 European Centre for Medium-range Weather Forecasts (UK, 2010-11)
4 University of Washington, Dpt. Statistics (US, 2009),
5 University of Oxford, Dpt. Mathematics (UK, 2009)
Ph.D. (Energetics) from Ecole des Mines de Paris, FranceM.Sc. (Applied Maths) from National Institute for Applied Sciences, Toulouse, France
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The Energy Analytics & Markets group at DTU
One of the 5 groups of the Center for Electric Power and Energy,Dpt. of Electrical Engineering
Resources: (10 nationalities)
Faculty: 1 Prof, 2 Assist. Profs.
Junior: 2 post-doc fellows, 10 Ph.D. students,1 research assistant
+ student helpers, and Ph.D. guests from,e.g., China, Brazil, US, Spain, France, Italy,The Netherlands, Germany, etc.
Projects: funding from EU, Danish researchcouncils, industry, with many internationalcollaborations
Education: Various courses in energyanalytics, forecasting, optimization andmarkets
Impact: Recognized internationally leadingexpertise in energy analytics and markets.Works presented and discussed at MIT,Cambridge, Oxford, Stanford, ETH, EPFL,Imperial College, etc. 16 / 34
Overview of focus areas
Energy analyt-ics & Markets
Data-drivenanalytics
ForecastingData-drivenoptimization
Dataexchangemodels
Energy markets
Mechanismdesign
Uncertainty,variability
& flexibility
Offering& tradingConsumers at
the centre!
Systems
Stochastic &distributed
optimization
Game-theoretical
aspects
Behaviouraleconomics
Open dis-semination
Open-sourcesoftware
Open accessdatasets
Open courses
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... plus guest lecturers
Lena Kitzing
Researcher,DTU Management Engineering
Tue V. Jensen
Post-doc,DTU Elektro
Piret Stern Dahl
Online Education Project Coordinator, CLIMATE-KICActive member of Energy Crossroads DenmarkENSIGHT facilitator
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And 4 teaching assistants
Fabio Moret
Adelie Barre
Chiara di Modica
Dragos-IoanBogatu
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And you, who are you?
Click to reach the poll (on socrative.com)
Go to: “Student Log In”
Room number: “675366”
It should take you less than 5 minutes...
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3 Course contents, schedule and evaluation
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Course contents and schedule (tentative)
All information related to the course is available at the course webpage
This includes:
General course description
Learning objectives
Lectures and slides
Extra suggested readings
Exercise sessions
Assignments,
etc.
Especially, the course schedule is available at this link
Lecture sessions will take place in 341, aud. 21Exercise sessions (/assignment time) will take place in 325, databars IT017 and IT025
The game session on 19 February 2017 will be in Glassalen (bg. 101)22 / 34
Feedback after 2017
Grade distribution
Student feedback, course improvement(s):
Course participants were very happyoverall, and got very good grades!
Implemented improvements followingdetailed feedback:
lightening (a bit) assignments
more topics and going deeper intothem
more support with additional TAs
etc.
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Assignments and evaluation
The course and its evaluation rely on 4 assignments:
Assignment 1: Build and operate a realistic electricity market!
Assignment 2: Participation and revenue optimization of a renewable energy producer inthe electricity market
Assignment 3: Renewable energy forecasting: Let’s compete!
Assignments 1-3 will count for 33% of the final grade, based on a short reportdescribing the assignment work
These are:
performed over a period of 3-4 weeks,
preferably in groups of 2 or 3 (can also be done individually).
Contributions have to be clearly stated at the beginning (or end) of the report
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4 Readings (general)
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Readings: a classic!
Fundamentals of Power SystemEconomics
Available as a free e-book throughDTU Findit
Written by 2 famous Professors inElectrical Engineering
D. Kirschen in Uni. Washington,Seattle
G. Strbac at Imperial College, London
However:
Electricity markets are only part ofthe bigger picture (e.g., transmissionpricing, etc.)
Renewables are not considered
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Readings: another classic
Electricity Markets - Pricing,Structures and Economics
Available as a free e-book throughDTU Findit
Very interesting and extensive coverageof electricity markets as part of thebigger picture (history, regulation,financial modelling of power plants,etc.)
However, renewables are also notconsidered!
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Readings: a third classic
Power System Economics - DesigningMarkets for Electricity
NOT available as a free e-bookthrough DTU Findit
Already used in the 42003 course(Energy Economics, Markets andPolicies)
However, renewables are also notconsidered!
The author’s webpage:http://stoft.com/
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More recent
The Economics of Electricity Markets
Available as a free e-book throughDTU Findit
Good coverage of some of the topics wewill be interested in, as well as furtherproblems related to investment, marketpower, etc.
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More recent with focus on renewables
Integrating Renewables in ElectricityMarkets
Available as a free e-book throughDTU Findit
More advanced in terms of themathematical aspects of renewables inelectricity markets
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5 Practical information
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Practical information
Data analysis, programming and optimization are to be done in
R, Matlab, Python (Excel not recommended, except for the in-class exercise of Lena!!)
GAMS, Mosek, Gurobi
For those who would like to install and play with R...
for those who use windows, please go to this link for installation:http://cran.r-project.org/bin/windows/base/
for those who use Ubuntu/Debian, please go to this link for installation:http://cran.r-project.org/bin/linux/ubuntu/README
finally for those on Mac OS, please go to this link for installation:http://cran.r-project.org/bin/macosx/
All slides, schedule, info, etc. are available on the course website:http://pierrepinson.com/?page id=913
(plus extra material if you are interested in renewables modelling, forecasting, electricitymarkets, etc.)
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Contacts
Course responsible:Pierre Pinsonemail: [email protected] / [email protected]: 2398 3221
Teaching assistants:Fabioemail: [email protected]
Adelieemail: [email protected]
Chiaraemail: [email protected]
Dragosemail: [email protected]
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Thanks for your attention!
I am available during the breaks and after the lectures for questions...
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