Dispatch wind generation and demand response

Abstract

A smarter grid will enable more and more direct demand response, and renewable energy resources, which have offered challenges to the existing grid and market operation mechanisms, tools, models, and algorithms. This paper will first analyze the business requirements for scheduling and dispatching a smarter grid with significant penetration of wind generation and demand response. Dispatch solutions are proposed for these challenges. A Ramp Market is proposed to provide economic incentives for the market participants to provide ramp service which is needed to integrate significant wind generation into the power grid. A few other alternatives to manage wind generation will also be analyzed and compared with the proposed Ramp Market approach. This paper also presents a new multi-tier dispatch framework to manage the significant penetration of demand response, in particular the Price Responsive Demand (PRD) which mainly consists of residential consumers who have smart meters installed and can directly respond to real-time market prices. PRD will have great impacts on grid and market operation while it is impossible to dispatch them with the traditional centralized approach. Therefore, the smart dispatch for a smart grid will be a multi-tier architecture, in which each tier has different operational objective and is coordinated with its parent and child tier using incentive and feedback signals.