7/30/2019 Mechanism Design for the Smart Grid

1/34

MechanismDesi n

f r h m r riValentinRobu,HarryRose,EnricoGerding, Sebastien Stein,

eorg os a a a s, am o a,

AlexRogersandNicholasR.Jennings

UniversityofSouthampton

6th April2011

7/30/2019 Mechanism Design for the Smart Grid

2/34

Outline

EnergyDomain

SmartGrid

a ro ect

MechanismDesi n

Demandaggregation

in

the

smart

grid

Otherwork

and

Conclusions

iDEaS :IntelligentDecentralisedEnergyAwareSystems 2

7/30/2019 Mechanism Design for the Smart Grid

3/34

Developmentandgrowthsincethestartof

FossilFuels

Coal(1800+)

Oil(1900+)

energycollectedover

m onso years

iDEaS :IntelligentDecentralisedEnergyAwareSystems 3

7/30/2019 Mechanism Design for the Smart Grid

4/34

Continueduseoffossilfuelsischallengedby

Finiteresources

Demandoutstri s

productioncapacity

Resourcesarenoteven y s r u e

ClimateChange

IncreasingatmosphericCO2concentration

iDEaS :IntelligentDecentralisedEnergyAwareSystems 4

7/30/2019 Mechanism Design for the Smart Grid

5/34

Addressingtheseissuesrequirechallenging

2008 Climate

Increasedenergy

efficiency

Change Act

t roug e ectri ication

Transport

HeatingLowcarbon

Wind

Solar Hydro

Nuclear

iDEaS :IntelligentDecentralisedEnergyAwareSystems 5

7/30/2019 Mechanism Design for the Smart Grid

6/34

Currentelectricitynetworksarechallenged

Ageinginfrastructuredesignedforasmall

numberof

large

generators

Supplyfollowsdemand

Peakdemand

FredSchweppe proposedtheneedforamore

ynam cgr

Spotpricingandhomeostaticcontrol

iDEaS :IntelligentDecentralisedEnergyAwareSystems 6

7/30/2019 Mechanism Design for the Smart Grid

7/34

TheSmartGridrepresentsamodernvision

flowingtogetherinrealtime,nearzeroeconomic

,

widerarrayofcustomizedenergychoices,suppliers

electricservices,

and

all

of

this

supported

by

anew

distributedintelligenceandresources,cleanpower,and

US Department of Energy (2009)

iDEaS :IntelligentDecentralisedEnergyAwareSystems 7

7/30/2019 Mechanism Design for the Smart Grid

8/34

TheiDEaSProjectisexploringroutesto

iDEaSProject:Intelligent

DecentralisedEner

Aware

S stems

www.ideasproject.info

Threeyear

privately

funded

by

industry

5researchfellows

6PhDstudents

iDEaS :IntelligentDecentralisedEnergyAwareSystems 8

7/30/2019 Mechanism Design for the Smart Grid

9/34

Outline

EnergyDomain

SmartGrid

a ro ect

MechanismDesi n

Demandaggregation

in

the

smart

grid

Otherwork

and

Conclusions

iDEaS :IntelligentDecentralisedEnergyAwareSystems 9

7/30/2019 Mechanism Design for the Smart Grid

10/34

Smartmetersareakeypartofthesmart

,

Smartmetersprovideutilitieswith

muchbetter

redictions

of

ener

consumption

Individualsalwayshavemoren orma onon u ure eman

anmec an sm es gn e pe c

thisadditionalinformation?

iDEaS :IntelligentDecentralisedEnergyAwareSystems 10

7/30/2019 Mechanism Design for the Smart Grid

11/34

Wemodelanumberofindividualhomes

.EnerInc

iDEaS :IntelligentDecentralisedEnergyAwareSystems 11

7/30/2019 Mechanism Design for the Smart Grid

12/34

Wemodelanumberofindividualhomes

If unitsactuallyused.

Bu

orsellin

difference

in

the

balancin

market

Balancingmarketbuysat

Chooseamounttobuyinforwardmarketsto

minimisetotalcost

iDEaS :IntelligentDecentralisedEnergyAwareSystems 12

7/30/2019 Mechanism Design for the Smart Grid

13/34

Canweelicitbetterestimatesfromthe

Consumersprovideestimateof

futureconsum tion

Doingso

incurs

acost

Consumerscan

misre ort

ifit

is

in

theirinteresttodoso.

iDEaS :IntelligentDecentralisedEnergyAwareSystems 13

7/30/2019 Mechanism Design for the Smart Grid

14/34

Simplesolutionistoevenlyallocatedshare

.Consumers Aggregators

Individual

consumptionsShare distributed

Number of consumers

TruthtellingisaNashequilibrium

Stronglybudgetbalanced

Doesntrewardmorepreciseestimates

iDEaS :IntelligentDecentralisedEnergyAwareSystems 14

7/30/2019 Mechanism Design for the Smart Grid

15/34

Usesphericalscoringruletoderivearule

.

Actual Consumers

Properties

Needstobescaledappropriately

iDEaS :IntelligentDecentralisedEnergyAwareSystems 15

7/30/2019 Mechanism Design for the Smart Grid

16/34

Usesphericalscoringruletoderivearule

.

Share distributedSavings made

Maximumprecision

Truthtellingisstrictlydominant

o erscores

Moreaccurateandpreciseestimatesrewarded

Weaklybudgetbalanced

iDEaS :IntelligentDecentralisedEnergyAwareSystems 16

7/30/2019 Mechanism Design for the Smart Grid

17/34

Althoughtruthtellingisdominant

precisionestimatethattheyactualgenerate

Weempirically

find

the

equilibrium

using

iteratedbestresponse

Ateachroundoftheiterationweassume

opponentsprecisions

are

fixed

fixedopponents

iDEaS :IntelligentDecentralisedEnergyAwareSystems 17

7/30/2019 Mechanism Design for the Smart Grid

18/34

Ourmechanismelicitsmoreprecise

.

iDEaS :IntelligentDecentralisedEnergyAwareSystems 18

7/30/2019 Mechanism Design for the Smart Grid

19/34

Ourmechanismelicitsmoreprecise

.

iDEaS :IntelligentDecentralisedEnergyAwareSystems 19

7/30/2019 Mechanism Design for the Smart Grid

20/34

Manyotherapplicationsrequireelicitationof

Virtualpowerplants(VVP)

Multi lesmall

scale

renewable

generatorscometogetherto

artici atewithinthe rid.

Morepredictable

generation

improvesgridplanningandwould

reduceexposureinbalancing

market

Combinewithelectricvehicles(estimatesofstorageandfeedin).

iDEaS :IntelligentDecentralisedEnergyAwareSystems 20

7/30/2019 Mechanism Design for the Smart Grid

21/34

Outline

EnergyDomain

SmartGrid

a ro ect

MechanismDesi n

Demandaggregation

in

the

smart

grid

Other

work

and

Conclusions

iDEaS :IntelligentDecentralisedEnergyAwareSystems 21

7/30/2019 Mechanism Design for the Smart Grid

22/34

Electricvehiclesareakeycomponentofthe

RangeextendedEVandpluginhybridEV

ChevroletVolt

ToyotaPrius plugin

iDEaS :IntelligentDecentralisedEnergyAwareSystems

7/30/2019 Mechanism Design for the Smart Grid

23/34

Thelocaldistributionnetworkmaybethe

LocalTransformer

(limited maximum

Localtransformeristypicallyundersized

EVrepresentsignificantextraload

Home 24kWhover24hours,EV 32kWhover8hour

iDEaS :IntelligentDecentralisedEnergyAwareSystems

7/30/2019 Mechanism Design for the Smart Grid

24/34

Twocurrentmethodsareusedtoattempt

TOUtarriff

Offerchea

overni ht

char in

to

discoura e

peaktimecharging

Collectrequirementsandautomaticallyschedule

Can

we

use

mechanism

design

to

overcome

theseproblems?

iDEaS :IntelligentDecentralisedEnergyAwareSystems 24

7/30/2019 Mechanism Design for the Smart Grid

25/34

Weconsideramodelofmodelthissetting

units of chargerequ re

units of chargeavailable

iDEaS :IntelligentDecentralisedEnergyAwareSystems 25

7/30/2019 Mechanism Design for the Smart Grid

26/34

Nonincreasingmarginalvaluationsoccur

Dualfuelpricing:

Priceof

fuel

(in

/litre),

Internalcombustionengineefficiency(miles/litre),

Electricefficiency(inmiles/kWh),

Distanceprobability

density

function,

Expectedutilityforgivencharge(inkWh)givenby:

iDEaS :IntelligentDecentralisedEnergyAwareSystems 26

7/30/2019 Mechanism Design for the Smart Grid

27/34

Asimplegreedyallocationrulewithsecond

pricepayments

is

not

DSIC

in

this

setting

1

U = 10 + 4 5 2 = U = 10 2 =

iDEaS :IntelligentDecentralisedEnergyAwareSystems 27

7/30/2019 Mechanism Design for the Smart Grid

28/34

Toaddressthisusegreedyto`preallocate

butwe

also

`burn

units

either

immediately

oronde arture

PreserveDSIC

without

model

of

future

events

bynotallocatingsomeitems:

Burnwhen

the

marginal

value

of

the

unit

is

Immediateburning

Ondepartureburning

iDEaS :IntelligentDecentralisedEnergyAwareSystems 28

W i hi l

7/30/2019 Mechanism Design for the Smart Grid

29/34

Wegeneraterepresentativevehicleuse

iDEaS :IntelligentDecentralisedEnergyAwareSystems 29

W t t ti hi l

7/30/2019 Mechanism Design for the Smart Grid

30/34

Wegeneraterepresentativevehicleuse

iDEaS :IntelligentDecentralisedEnergyAwareSystems 30

W t t ti hi l

7/30/2019 Mechanism Design for the Smart Grid

31/34

Wegeneraterepresentativevehicleuse

iDEaS :IntelligentDecentralisedEnergyAwareSystems 31

7/30/2019 Mechanism Design for the Smart Grid

32/34

OnlineMechanismDesignforDynamic

ElectricVehicle

Charging

Varia eratec arging

Pricefast

chargers

appropriately

maintainingincentives

Dynamicdistributedmodel

Vehiclesre ort

location,

destinationavailablecharge&

re uirements

iDEaS :IntelligentDecentralisedEnergyAwareSystems

For more details see the publications

7/30/2019 Mechanism Design for the Smart Grid

33/34

Formoredetails,seethepublications

Rose,H.,Gerding,E.,andRogers,A. Mechanism

Design

for

Aggregated

Demand

Prediction

in

the

SmartGrid. AAAI2011(toappear).

Gerding,E.,

Robu,

V.,

Stein,

S.,

Rogers,

A.

and

Jennin s N.R. OnlineMechanismDesi nforElectric

VehicleCharging.AAMAS2011(toappear)

iDEaS :IntelligentDecentralisedEnergyAwareSystems 33

7/30/2019 Mechanism Design for the Smart Grid

34/34

Conclusions

Thesmartgridisessentialforasustainable

energyfuture

tothisvisiongiventheincreaseddemand

anyoppor un es ormec an sm es gn oinfluence

the

design

of

this

new

grid

Seeprojectwebsiteformoredetailsand

publications:www.ideasproject.info

iDEaS :IntelligentDecentralisedEnergyAwareSystems 34