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This paper reviews the merits of modernizing the power grid and discusses the way electric utilities in various countries are directing their practices toward offering enhanced sustainability, reliability, resilience, security, and economics to their respective consumers. The modernization of the electricity grid, which has evolved as the brainchild of electricity restructuring, has been made all the more urgent by the virtually pervasive dependence of modern lives on a reliable, clean, and secure supply of affordable electricity. The electric utility industry restructuring, which has staged many institutional, regulatory, and business models, has enabled the modern electricity grid to take... 

This paper presents a hierarchical demand response (DR) bidding framework in the day-ahead energy markets which integrates customer DR preferences and characteristics in the ISO's market clearing process. In the proposed framework, load aggregators submit aggregated DR offers to the ISO which would centrally optimize final decisions on aggregators' DR contributions in wholesale markets. The hourly load reduction strategies include load shifting and curtailment and the use of onsite generation and energy storage systems. The ISO applies mixed-integer linear programming (MILP) to the solution of the proposed DR model in the day-ahead market clearing problem. The proposed model is implemented... 

Electric energy storage (EES) installations in power systems are migrating from large centralized systems to more distributed installations for microgrid applications. This trend signifies modular EES installations for the local control of buildings and processes. A centralized EES system is often dispatched by grid operators for increasing the overall efficiency and enhancing the security of power systems. The distributed EES (DEES) is locally managed by aggregators to maximize the local impact of EES, before the aggregators' adjusted load profiles are submitted to grid operators for the day-ahead scheduling. In this paper, we present and analyze two models for the hourly scheduling of... 

Advancements in smart grid technologies have made it possible to apply various options and strategies for the optimization of demand response (DR) in electricity markets. DR aggregation would accumulate potential DR schedules and constraints offered by small- and medium-sized customers for the participation in wholesale electricity markets. Despite various advantages offered by the hourly DR in electricity markets, practical market tools that can optimize the economic options available to DR aggregators and market participants are not readily attainable. In this context, this paper presents an optimization framework for the DR aggregation in wholesale electricity markets. The proposed study... 

This paper summarizes a presentation to be given at the IEEE Power and Energy Society 2012 General Meeting, in the panel session Demand response: analytics, practice, and challenges in smart grid environment. The paper elaborates participation of demand response (DR) resources in electricity markets. Specially, different types of DR participation in the wholesale energy markets are discussed. Then, two DR program designs are presented which aim to enable customers' participation in day-ahead energy markets. The paper continues with presenting the modified structure of the day-ahead energy market in presence of the DR programs. The offer packages specifically designed for DR participation in... 

Advancements in smart grid technologies have made it possible to apply various options and strategies for the optimization of demand response (DR) in electricity markets. DR aggregation would accumulate potential DR schedules and constraints offered by small- and medium-sized customers for the participation in wholesale electricity markets. Despite various advantages offered by the hourly DR in electricity markets, practical market tools that can optimize the economic options available to DR aggregators and market participants are not readily attainable. In this context, this paper presents an optimization framework for the DR aggregation in wholesale electricity markets. The proposed study... 

Reducing the emissions produced by the electric power production may be one of the most challenging problems of the electricity sector in the coming future. As one of the potential solutions, demand response (DR) can play an important role to reduce emissions and costs associated with emission reduction activities. This paper aims to assess the short-term impacts of running a DR program on a power system constrained by emissions caps. The DR program is designed to procure operating reserve from demand-side participants. A day-ahead network-constrained market clearing model with emission cap constraints is used as the assessment tool, where the DR program participants along with generating... 

This paper demonstrates how a probabilistic criterion could be explicitly integrated in the unit commitment (UC) formulation. Both spinning reserve and interruptible load are taken into account as the operating reserve facilities. Incorporating the interruption notice time of interruptible load involves some complexities in the evaluation procedure and problem formulation which is considered in this paper. The expected energy not supplied (EENS) is considered as a probabilistic criterion and a new method is proposed to calculate this index in the presence of interruptible load. The reliability-constrained unit commitment (RCUC) problem is formulated based on the mixed-integer programming... 

Distribution system operator (DSO) has traditionally been responsible for the reliable operation of power distribution systems. The advent of distributed energy resources (DERs) and microgrids in distribution networks has required a new platform for DSOs. The new DSO, which is for the most part an independent agent, is responsible for aggregating a widely dispersed DERs (which include small thermal generation units, energy storage, and demand response) and flexible loads in electricity markets. DSO coordinates and balances the transactive dispatch of supply and demand at the distribution level and links wholesale and retail electricity markets. In this paper, a framework for the day-ahead... 

Distribution system operator (DSO) has traditionally been responsible for the reliable operation of power distribution systems. The advent of distributed energy resources (DERs) and microgrids in distribution networks has required a new platform for DSOs. The new DSO, which is for the most part an independent agent, is responsible for aggregating a widely dispersed DERs (which include small thermal generation units, energy storage, and demand response) and flexible loads in electricity markets. DSO coordinates and balances the transactive dispatch of supply and demand at the distribution level and links wholesale and retail electricity markets. In this paper, a framework for the day-ahead... 

In this paper, a self-generation scheduling method for a power generation company (GenCo) with renewable generation units is presented. In the proposed method, locational market prices (LMPs) are calculated using the incomplete information on competing market participants by simulating the ISO's market clearing program and considering the effect of physical limitations of transmission lines. The errors associated with forecasted LMP and renewable production are modeled in the GenCo's generation scheduling using a robust optimization approach. The scheduling problem is modeled as a mixed-integer linear programming which is solved by a CPLEX solver in GAMS. An eight-bus system is employed to... 

In this paper, a robust distribution system expansion planning (DSP) approach is presented to supply the load growth locally and move toward nearly zero energy local distribution areas (LDAs). In the proposed approach, a distribution system operator (DSO) is responsible for secure and optimum operation of LDAs. Therefore, investors on distribution system upgrades use this approach to maximize the profit on investments by determining the installation year of new distribution feeders and energy resources, distributed energy resource (DER) placements and sizes considered by corresponding DSOs. The accurate AC power flow solution is used and mathematical methods are developed to model the DSP as... 

The integration of high-voltage direct-current (dc) transmission lines in conventional alternating-current (ac) systems would affect the indirect measurement of phasor measurement unit (PMU) devices since the concept of phasors would not correspond to dc transmission circuits. The optimal PMU placement problem in ac/dc systems subjected to the system observability is presented in this paper by applying a mixed-integer programming model. In practice, the cost of each PMU is variable as a function of PMU measurement channels. This attribute is incorporated in the proposed model as well. In addition, the number of PMU measurement channels is deemed to be technically limited; thus, the common... 

Monitoring/control infrastructures are often assumed to be fully reliable in power system reliability studies. However, recent investigations on blackouts have revealed the crucial impacts of monitoring/control system malfunctions. This paper addresses the impact of situational awareness and controllability on power system reliability assessment. A methodology is proposed to simulate a situation in which a limitation of either or both monitoring and control functions could spread the consequence of power system events throughout the grid. It is assumed that the monitoring/control infrastructure is based on a wide-area measurement system (WAMS). While the proposed methodology is applicable to... 

This paper presents an optimization model for the calculation of the minimum number of phasor measurement units (PMUs) in electrical power networks. The problem constraint is a predefined probability of observability associated with each bus. The mixed-integer programming is used for the proposed optimization and an efficient linearization technique is proposed to convert the nonlinear function representing the probability of observability into a set of linear expressions. The PMU placement is staged in a multi-year planning horizon due to financial and physical constraints. The average probability of observability is maximized at the intermediate planning stages, subject to a limited number... 

This paper enhances the observability of power networks by taking into consideration random component outages. The architecture of wide-area measurement system (WAMS) is analyzed in order to identify components that would affect the network observability. An iterative framework is devised to calculate a bus index in power networks equipped with phasor measurement units (PMUs) and conventional measurements. The average of bus indices represents a system index which provides an overall insight on the power network observability. The system index is utilized as a criterion to distinguish among multiple optimal PMU placements. Conventional bus injection and line flow measurements and the effect...