This research develops new models and methodologies that address integrating renewables and storage in distribution systems with the goal of reversing a "death spiral" resulting from integration into the power grid of consumer-based renewable generation sources such as solar and wind, as well as distributed energy storage. The death spiral refers to a situation in which unplanned integration of renewables and storage may drive the power grid toward a suboptimal operating situation that is costly, if not impossible, to correct. This project directly addresses this major obstacle to large scale integration of renewable generation; it is expected that resolving this problem will have major societal benefits. A key innovation of the approach is the development of new integration models in which the utility owns and operates renewable integration and storage operations. With a coordinated integration of distributed renewable resources, the proposed integration model is able to harvest renewable resources efficiently and, at the same time, provide more economic benefits to consumers than what can be achieved by consumer-based integration schemes. The expected findings will provide insights and general guidelines for regulatory policy making for the future power grid. It has the potential of providing insights allowing regulators and industry to reverse the death spiral referred to above. The multidisciplinary nature of this research will provide a rich experience for graduate students and will enrich the undergraduate curriculum.
Utility-based integration models and hybrid models involving both utilities and consumers are proposed and analyzed. Using a game theoretic approach, interactions between utilities and consumers are characterized and fundamental tradeoffs between retail profit and consumer surplus are quantified. Pareto fronts of achievable tradeoff between retail profit and consumer surplus under different integration models are characterized, from which optimal renewable integrations and storage operations are developed. The project also addresses practical issues involving various uncertainties and the lack of public information in the interactions of multiple service providers. New online learning techniques are developed for optimal dynamic pricing of retail electricity. The research project advances the state of the art in theory and practice and helps to establish an economically viable and operationally secure pathway toward sustainable integration of clean energy sources.
