System and method for decentralized energy production

An energy generation system of a power producer for generating and providing electricity to an electric power system operated by an independent system operator (ISO), wherein multiple power producers supply the electricity to the electric power system and multiple power consumers demand the electricity from the electric power system, the energy generation system of the power producer having a set of generators of the power producer, a receiver to receive a forecast of a demanded energy quantity for the electric power system from the ISO for a future energy generation period, and to receive a forecast of a reserved energy quantity for the electric power system from the ISO for the future energy generation period, and the energy generation system of the power producer comprising:

• a processor in communication with the receiver, is configured to
• determine a residual demand curve, at each time step of the future energy generation period, relating to a price and a quantity of the demanded energy for that time step, based on the received forecast of the demanded energy for each time step, wherein the future energy generation period is at least a day-ahead period;
• determine a residual reserve curve at each time step of the future energy generation period, relating to a price and a quantity of the reserved energy for that time step, based on the received forecast of the reserved energy for each time step;
• determine a schedule of operations of the set of generators for each time step of the future energy generation period, by optimizing a value function of a difference between a revenue from generating the demanded energy and the reserved energy, and a cost of producing the generated energy, by the power producer;
• and
• a controller to control the set of generators to produce energy according to the schedule of operations, when the receiver receives an acceptance of the schedule of operations from the ISO.

A power generation system of a power producer for generating and providing electricity to an electric power system operated by an independent system operator (ISO), wherein multiple power producers supply the electricity to the electric power system and multiple power consumers demand the electricity from the electric power system, the power generation system of the power producer comprising:

• a set of generators of the power producer;
• a receiver to receive a forecast of a demanded energy quantity for the electric power system from the ISO for a future energy generation period, and to receive a forecast of a reserved energy quantity for the electric power system from the ISO for the future energy generation period;
• a processor in communication with the receiver, is configured to
• determine a residual demand curve, at each time step of the future energy generation period, relating to a price and a quantity of the demanded energy for that time step, based on the received forecast of the demanded energy for each time step, wherein the residual demand curve includes pluralities of sections, such that a section includes a most likely quantity of the demanded energy for the power producer;
• determine a residual reserve curve at each time step of the future energy generation period, relating to a price and a quantity of the reserved energy for that time step, based on the received forecast of the reserved energy for each time step, wherein the residual reserve curve includes pluralities of sections, such that a section includes a most likely quantity of the reserved energy for the power producer,
• wherein the revenue for generating each quantity of the demanded energy is determined according to the residual demand curve, and the revenue for generating each quantity of the reserved energy is determined according to the residual reserve curve, wherein the cost of producing each quantity of the generated energy depends on a state of each generator of the set of generators, such that the value function optimization is subject to both constraints on an operation of the generators, and constraints on the quantities of the generated energy, as well as subject to the sections of the residual demand curve and the sections of the residual reserve curve;
• determine a schedule of operations of the set of generators for each time step of the future energy generation period, by optimizing a value function of a difference between a revenue from generating the demanded energy and the reserved energy, and a cost of producing the generated energy, by the power producer;
• and
• a controller to control the set of generators to produce energy according to the schedule of operations, when the receiver receives an acceptance of the schedule of operations from the ISO.

An energy generation system of a power producer for generating and providing electricity to an electric power system operated by an independent system operator (ISO), wherein multiple power producers supply the electricity to the electric power system and multiple power consumers demand the electricity from the electric power system, the energy generation system of the power producer having a set of generators of the power producer, a receiver to receive a forecast of a demanded energy quantity for the electric power system from the ISO for a future energy generation period, and to receive a forecast of a reserved energy quantity for the electric power system from the ISO for the future energy generation period, and the energy generation system of the power producer comprising:

• a processor in communication with the receiver, is configured to
• determine a residual demand curve, at each time step of the future energy generation period, relating to a price and a quantity of the demanded energy for that time step, based on the received forecast of the demanded energy for each time step, wherein the future energy generation period is at least a day-ahead period;
• determine a residual reserve curve at each time step of the future energy generation period, relating to a price and a quantity of the reserved energy for that time step, based on the received forecast of the reserved energy for each time step,
• wherein the revenue for generating each quantity of the demanded energy is determined according to the residual demand curve, and the revenue for generating each quantity of the reserved energy is determined according to the residual reserve curve, wherein the cost of producing each quantity of the generated energy depends on a state of each generator of the set of generators, such that the value function optimization is subject to both constraints on an operation of the generators, and constraints on the quantities of the generated energy, as well as subject to the sections of the residual demand curve and the sections of the residual reserve curve;
• determine a schedule of operations of the set of generators for each time step of the future energy generation period, by optimizing a value function of a difference between a revenue from generating the demanded energy and the reserved energy, and a cost of producing the generated energy, by the power producer;
• and
• a controller to control the set of generators to produce energy according to the schedule of operations, when the receiver receives an acceptance of the schedule of operations from the ISO.