Grid that’s Risk-Aware for Clean Electricity - GRACE



Program:
PERFORM
Award:
$2,437,438
Location:
Durham,
North Carolina
Status:
ACTIVE
Project Term:
08/27/2020 - 08/26/2023
Website:

Critical Need:

The grid relies on conventional bulk power plants to provide the flexibility to operate power systems reliably. These assets can guarantee available capacity except in rare events. The existing risk management strategy protects against those rare events and aligns well with conventional technologies. New risk management strategies are needed due to the shift in grid resources: intermittent renewable resources, distributed energy resources, and storage technologies. Management systems must be able to leverage all capabilities of these new technologies to maintain an economical and reliable grid. PERFORM projects aim to address that need by developing methods to quantify and manage risk at the asset and system levels for the grid.

Project Innovation + Advantages:

Duke University is developing a Grid that’s Risk-Aware for Clean Electricity (GRACE) energy management system (EMS) framework for characterizing the uncertainty of electric power system assets to optimize their performance. GRACE determines the scheduling, dispatch, and compensation of different resources in organized wholesale electricity markets and vertically integrated utilities by building upon industry-implemented market structure and algorithms to incorporate risk considerations. The team will characterize uncertainty of grid asset performance, determine risk-aware reserve targets and asset commitment and dispatch, and translate performance uncertainty into risk scores and associated compensation for energy and reserves. GRACE does not require major changes in industry practices and will be ready for seamless near-term integration. Relative to current practices, GRACE is expected to reduce CO2 emissions by more than 3% while also substantially reducing operational costs.

Potential Impact:

PERFORM projects will design methods and risk scores to clearly communicate the physical delivery risk of an energy asset’s offer and design grid management systems that organically capture uncertainty. These management systems will evaluate and hedge the system risk position to meet or exceed a baseline system risk index. This pursuit will achieve the following area impacts:

Security:

Optimal utilization of renewable and clean resources for all grid services improves grid reliability, reduces energy imports, and provides a sustainable path to energy independence.

Environment:

When low- or zero-emission assets provide all grid products and services, grid operations are no longer reliant on legacy, carbon-heavy centralized generation assets, which enables the grid to absorb more clean resources.

Economy:

Innovation in grid management will reduce consumer costs, increase the value of emerging technologies, and help achieve a clean and sustainable electric power sector. Merging risk techniques in power systems with those from finance and actuarial science enables further economic growth and redefines the role of electric power sector entities.

Contact

ARPA-E Program Director:
Dr. Joseph King
Project Contact:
Prof. Dalia Patino-Echeverri
Press and General Inquiries Email:
ARPA-E-Comms@hq.doe.gov
Project Contact Email:
dalia.patino@duke.edu

Partners

Pacific Northwest National Laboratory
Ohio State University
North Carolina State University

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Release Date:
02/07/2020