In this presentation, we showcase using JuMP to formulate and solve a range of optimization problems related to the location and market bidding of energy management systems.
The development of new clean-generation technologies also leads to new plant-level architectures that combine several generation and storage assets behind the point of connection. These co-located generation resources (Hybrid Systems) primarily operate as merchant assets that employ automated market bidding models and internal Energy Management Systems (EMS) to comply with the operator's signals. Formulating an optimal bidding model requires embedding the EMS control model into the bidding algorithm, resulting in a bi-level optimization problem. In this presentation, we first showcase using JuMP to formulate and solve this problem effectively for multiple merchant systems and the bidding outcomes considering different model formulations. Second, the bidding outcomes are later integrated into a PowerSimulations.jl (also built with JuMP) simulation to study the system-level effects of the various merchant bidding and the interactions between market-clearing models and the embedded EMS model. We will showcase simulations conducted in the RTS system considering different levels of merchant hybrid systems participation. The presentation provides the following specific insights on JuMP usage: 1) the Formulation of specialized bi-level problems with custom cuts to solve the merchant hybrid system bidding problem, 2) the integration of a modular model within a complex simulation workflow supported by JuMP in PowerSimulations.jl 3) Accelerating the solution of power systems operations simulation that employ agent optimization problems using JuMP.