Risk-Aware Market Clearing for Power Systems (RAMC)

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Atlanta, Georgia
Project Term:
07/10/2020 - 07/09/2024

Technology Description:

The increasing use of renewable energy resources challenges grid operations, which have traditionally relied on highly predictable load and generation. Future grid operators must balance generation costs and system-level risk, shifting from deterministic to stochastic optimization and risk management. Georgia Tech’s Risk-Aware Market Clearing (RAMC) project will provide a blueprint for an end-to-end, data-driven approach where risk is explicitly modeled, quantified, and optimized, striking a tradeoff between cost and system-level risk minimization. The RAMC project focuses on challenges arising from increased stochasticity in generation, load, flow interchanges with adjacent markets, and extreme weather. RAMC addresses these challenges through innovations in machine learning, sampling, and optimization. RAMC quantifies the risk of individual assets from historical data and learns the correlations among assets. It quantifies the system-level risk and learns fast and accurate approximations of multi-stage stochastic optimization algorithms for the day-ahead security-constrained unit commitment, the day-ahead forward reliability assessment commitment, the look-ahead commitment, and the real-time security constrained economic dispatch. RAMC performs real-world, multi-year validations of the proposed approach to balance cost and risk.

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:


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.


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.


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.


ARPA-E Program Director:
Dr. Jonathan Glass
Project Contact:
Prof. Pascal Van Hentenryck
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