Informs Annual Meeting 2017

SA81

INFORMS Houston – 2017

SA80

5 - Integrated Models for Transmission/generation Investments and Market-clearing Equilibrium in Electricity Markets Emre Çelebi, Kadir Has University, Kadir Has Caddesi, Cibali, Istanbul, 34083, Turkey, ecelebi@khas.edu.tr Investments in transmission/generation assets and market-clearing equilibrium are interrelated and influenced by a variety of factors including strategic behavior of the generation firms and uncertainties in demand and generation assets. Integrated investment/market-clearing models are formed as bi-level programming problems and they are reformulated by using a method for discretely constrained mixed complementarity problems. The proposed models are demonstrated using a realistic 9-node Turkish electricity market model. These models will be useful in planning generation/transmission investments and analyzing the relations among these investments and the market outcomes. 381B Power System Resilient Design and Optimization Sponsored: Energy, Natural Res & the Environment Electricity Sponsored Session Chair: Amir Mousavian, Clarkson University, amir@clarkson.edu 1 - Closed-loop Distribution Grid Restoration for Natural Disaster Recovery Jianhui Wang, Southern Methodist University, Dallas, TX, United States, jianhui@smu.edu We present a closed-loop distribution system restoration decision support model to assist distribution utility operators in making optimal and effective decisions during distribution system restoration under extreme weather events. The modeling framework consists of four modules: data fusion, advanced controls, multi-objective optimization and crew and resource dispatch. 2 - Storage Investment Model Considering Energy and Reserves Markets Hrvoje Pandzic, Faculty of Electrical Engineering and Computing University of Zagreb, Unska 3, Zagreb, 10000, Croatia, hrvoje.pandzic@fer.hr, Yury Dvorkin, Miguel Carrion We present an investment model for a merchant storage investor who is trying to maximize its profit in energy and reserves market. 3 - Communication-constrained Resilient Distribution Grid Design Geunyeong Byeon, University of Michigan, Ann Arbor, MI, United States, gbyeon@umich.edu, Russell Bent, Pascal Van Hentenryck, Harsha Nagarajan Several extreme weather events have revealed potential risks to electric power grids and motivated the need for upgrades that improve the resilience of grids to these events. Moreover, the increased functional dependencies between a power grid and its associated communication network have also added a new layer of risks to grid reliability. Hence, we consider the problem of designing resilient distribution grids in combination with its dependencies on communication systems. We pose the problem as a two-stage mixed-integer stochastic optimization problem and develop decomposition-based algorithms to analyze practically relevant test cases. 4 - Evaluating the Impact of Renewable Generation on Transmission Expansion Planning Ebrahim Mortaz, Auburn University, 115 N.debardeleben St. Apt 29, Auburn, AL, 36830, United States, emortaz@auburn.edu, Jorge F. Valenzuela In this talk, we study the impact of renewable generation on transmission expansion planning (TEP). We solve the TEP problem considering two prominent sources of renewable energy, wind and solar, and assess the effects of harvesting locations and installed capacity on the transmission network expansion plan. In solving the TEP problem, the hourly fluctuations of demand and RES over time are considered. We run all of our simulations on the IEEE 24-bus test system for a planning horizon of ten years. The simulation results provide alternative investment plans for expanding the transmission network that includes high penetration of RES. SA79

381C Decisions in Energy Markets using Extended Concepts of Equilibrium Sponsored: Energy, Natural Res & the Environment, Energy Sponsored Session Chair: Sauleh Ahmad Siddiqui, Johns Hopkins University, Baltimore, MD, 21218, United States, siddiqui@jhu.edu 1 - Solving Problems with Equilibrium Constraints with an Application to Energy Markets Sauleh Ahmad Siddiqui, Johns Hopkins University, 3400 N Charles Street, Baltimore, MD, 21218, United States, siddiqui@jhu.edu We provide a new set of complementarity-based algorithms for solving mathematical programs with equilibrium constraints and extend them to solve equilibrium problems with equilibrium constraints. We apply these algorithms to provide insights into energy markets with hierarchical structures. We conclude with policy insights and recommendations on how this approach can be extended. 2 - Carbon Emissions Forensic in Energy Sector: Is it Necessary? Yihsu Chen, University of California Santa Cruz, Santa Cruz, CA, 95060, United States, yihsuchen@ucsc.edu Climate policy has mostly focused on regulating power suppliers. There is a growing interest to explore regulating emissions from the demand side by forcing consumers to reduce their energy consumptions or to purchase power from cleaner sources. One possible approach is to impose a carbon tax on power consumption through network flow tracing. This paper analyzes the market outcomes under supplier- and demand-based approaches. We conclude that both approaches likely lead to the same market outcomes while consumer-based approach is likely to be inferior owing to its significant transaction cost. 3 - Phasing Out the U.S. Federal Helium Reserve: Policy Insights from a World Helium Model Olivier Massol, IFP.School, 228-232 Avenue Napoleon Bonaparte, Rueil-Malmaison, 92852, France, olivier.massol@ifpen.fr, Omer Rifaat We propose a market equilibrium model to study the effects of the recently decided rapid phase out of the U.S. Federal Helium Reserve (FHR), a strategic stockpile accumulated during the 1960s. The model treats both helium producers and the FHR as profit maximizing players in a dynamic non-cooperative game (formulated as a MCP). Evidences gained from our market simulations indicate that, compared to the currently implemented policy, a slower depletion of the U.S. FHR stockpile would systematically increase the financial return to the U.S. federal budget, lower helium venting into the atmosphere, and would also augment the global welfare. 382A Advances in Stochastic Optimization Sponsored: Optimization, Optimization Under Uncertainty Sponsored Session Chair: David Brown, Duke University, Durham, NC, 27708, United States, dbbrown@duke.edu Co-Chair: Santiago Balseiro, Duke University, Durham,NC, United States, santiago.balseiro@duke.edu 1 - Static Routing in Stochastic Scheduling: Performance Guarantees and Asymptotic Optimality Chen Chen, Duke University, 100 Fuqua Drive, Box 90120, Durham, NC, 27708, United States, cc459@duke.edu, Santiago Balseiro, David Brown We study stochastic scheduling with the weighted sum of expected completion time objective and processing times that may vary across both jobs and machines. We analyze static routing policies that route each job to a particular machine upfront and then sequence jobs on each machine via the WSEPT rule. A good routing can be found by solving a convex quadratic program that only uses expected job processing times. We provide an additive performance bound on the sub-optimality of this static routing policy that implies asymptotic optimality in the regime of many jobs. The key to this result is a lower bound on the performance of an optimal adaptive scheduling policy via a penalized information relaxation. SA81

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