Impact of Power Router Control on Electricity Markets

Abstract

The objective of this research is to develop a methodology that enables determination of how power routers impact the electric power system and electricity markets. A power router is a power electronics-based device that enables control of real power flows in a transmission system. Power router technology is maturing to the point of becoming a cost-effective enabler of increased flexibility in transmission control and transmission asset utilization. Power routers can enable a desirable increase in control of power systems, especially as infrastructure ages and degrades. This dissertation presents a formal extension to the traditional security-constrained optimal power flow (SCOPF) algorithm called the flexible security-constrained optimal power flow (FSCOPF). Simulation results show operating costs are lower using the FSCOPF dispatch compared to the SCOPF dispatch. Cost savings are due to a reduction in congestion present within the power system during the pre-contingency and post-contingency timeframes. The FSCOPF algorithm is used to analyze the electricity market impact of power routers dispatched as a real-time resource. Then a power router application is explored using the FSCOPF algorithm to analyze the impact of power routers on reducing the curtailment of renewable energy resources due to transmission bottlenecks. Finally, the economic analysis of power router impact guides the development of an outline for a merchant power routing framework. Merchant power routing defines how power router owners are able to create revenue within the existing electricity markets by operating their power routers to benefit the power system.