We are analyzing economic and resiliency benefits for the power grid that result from the provision of flexibility by diverse assets such as batteries, manufacturing facilities, buildings, and data centers. This flexibility is key to manage large amounts of intermittent and non-dispatchable renewable power and can help withstand severe contingencies. Generating revenue for such assets from electricity markets is challenging because there is significant uncertainty on prices and on associated revenue streams. Moreover, physical and economic phenomena governing assets and power networks span multiple spatial and temporal scales (from months to seconds and from local microgrids to national networks). These challenges require the development of specialized optimization formulations and algorithmic strategies.
We are developing optimization and control formulations that capture revenue streams at multiple scales from day-ahead, real-time, and frequency regulation markets and that seek to determine optimal asset locations that maximize revenue. We perform exhaustive year long and second-by-second simulations using real data from ISOs at different pricing hubs. We are also developing optimization formulations to quantify gains in system flexibility.