Integrated Learning and Optimization for Congestion Management and Profit Maximization in Real-Time Electricity Market

TL;DR

This paper introduces integrated learning and optimization methods that improve real-time electricity market operations by effectively managing congestion and maximizing profits through novel formulations that adapt to unknown loads and system parameters.

Contribution

The paper presents a new integrated learning and optimization approach that jointly trains unknown system parameters and operational decisions for enhanced economic dispatch and congestion management.

Findings

ILOs outperform sequential learning in reducing penalties

ILOs effectively minimize line congestion

ILOs improve economic operation efficiency

Abstract

We develop novel integrated learning and optimization (ILO) methodologies to solve economic dispatch (ED) and DC optimal power flow (DCOPF) problems for better economic operation. The optimization problem for ED is formulated with load being an unknown parameter while DCOPF consists of load and power transfer distribution factor (PTDF) matrix as unknown parameters. PTDF represents the incremental variations of real power on transmission lines which occur due to real power transfers between two regions. These values represent a linearized approximation of power flows over the transmission lines. We develop novel ILO formulations to solve post-hoc penalties in electricity market and line congestion problems using ED and DCOPF optimization formulations. Our proposed methodologies capture the real-time electricity market and line congestion behavior to train the regret function which eventually train unknown loads at different buses and line PTDF matrix to achieve the afore-mentioned post-hoc goals. The proposed methodology is compared to sequential learning and optimization (SLO) which train load and PTDF forecasts for accuracy rather than economic operation. Our experimentation prove the superiority of ILO in minimizing the post-hoc penalties in electricity markets and minimizing the line congestion thereby improving the economic operation with noticeable amount.