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Open Market Energy Generation Allocation

Open Market Energy Generation Allocation

Objective

The project aims at designing and implementing a decision support tool for electricity producers in an open and deregulated electric power market.
The system will exploit innovative modelling and algorithmic approaches and electronic commerce schemes to address the following problems:
1. Allocation of bilateral energy sales contracts over time.
2. Calculating the future expected water value, taking energy substitution into account.
3. Solving the unit commitment problem for a disaggregated system.
4. Energy bidding (price and quantity) in the electricity spot markets.

The OMEGA project aims at the development of concepts and tools for virtual marketplace and business communities. The result of OMEGA can be seen as a package tool supporting new business models and new types of trading for electricity producers on liberalised energy markets and will enable European power producers to be competitive partners in future electronic commerce based electricity trading environments.

Objectives:
The project aims at designing and implementing a decision support tool for electricity producers in an open and deregulated electric power market.
The system will exploit innovative modelling and algorithmic approaches and electronic commerce schemes to address the following problems:
1. Allocation of bilateral energy sales contracts over time.
2. Calculating the future expected water value, taking energy substitution into account.
3. Solving the unit commitment problem for a disaggregated system.
4. Energy bidding (price and quantity) in the electricity spot markets.
The OMEGA project aims at the development of concepts and tools for virtual marketplace and business communities. The result of OMEGA can be seen as a package tool supporting new business models and new types of trading for electricity producers on liberalised energy markets and will enable European power producers to be competitive partners in future electronic commerce based electricity trading environments.

Work description:
The work will be structured as follows:
- Problem specification: Model definitions for the electricity generation systems and for the open deregulated market.
- Data collection and scenario generation for the Italian, Portuguese and Spanish energy networks and markets.
- Software engineering: Product specifications, architectural design and definitions of formats for electronic commerce.
- Design of the integrated applications and the related software: Prototype system development, including development of algorithms for the four major subproblems; subsystems integration and interfacing for utilisation in electronic commerce.
- OMEGA system validation on real energy networks and markets.
- Preparation of the consortium's exploitation plan; Dissemination and awareness; OMEGA tutorial.

The overall challenge is to design and develop an efficient software system integrating electronic commerce capabilities and decision support functionalities based on different, advanced techniques such as Artificial Neural Networks, Stochastic Programming and Non-linear Programming with Mixed 0-1 variables. The system should eventually be able to solve large real-size problems with sufficient model realism, such as networks including up to 100 thermal units and 50 reservoirs distributed in 10 river basins, within the tight time constraints stemming from new open market regulations.


Milestones:
#1: Comprehensive definition of end-user needs.
#2: Definition of software requirements and architectural designing, including the electronic commerce format.
#3: Complete algorithmic development and prototype SW system release for initial validation.
#4: Release of final code for assessment & evaluation purposes.
#5: Validation of the final system on real networks and market structures; release of detailed exploitation plan for external commercialisation of the software product and business case.
The overall work, attained by the end of the project, severely suffers from the lack of integration and cannot be used as a complete system. The technological partner, KWI, abandoned the project at the beginning of the second half and the rest of partners didn't reach the whole integration of the package. There is some final valuable work in the final testing from end users. If it would have been successful, a fully integrated OMEGA system, could have had a real impact in the potential target market. On the positive side, individual modules were developed, that can work in a stand alone manner and might be exploited according to a specific market needs. Good work has been done on individual modules by individual partners. To sum up, the main achievements of the project are:
- A set of mathematical programming models representing state-of-the-art modelling of utilities behaviour in deregulated markets.
- Algorithmic approaches for scenario generation, portfolio optimisation (stochastic integer programming) and hydro-thermal co-ordination (non-linear integer programming).
- C++/Fortran codes solving the five steps of the OMEGA approach: scenario generation, portfolio optimisation, water value estimation, unit commitment and energy bidding.
- A relational database designed and implemented in order to deal with the huge amount of information needed to describe the utility and its environment (generating system, market and contracts).
- A complete set of procedures that work as the interface between the database and the implementation of the algorithms. Although the modules are not integrated because of the lack of user interfaces
-not provided by the software vendor, KWI-, it can be operated by experienced users by sequentially executing database procedures and algorithms. The most unbearable fact is that only single modules have been validated, while the whole product hasn't.
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Coordinator

IBERDROLA INGENIERIA Y CONSULTORIA, S.A.

Address

Calle Alameda De Urquijo 00004 3?F
48008 Bilbao

Spain

Administrative Contact

Luis J. LEGORBURU

Participants (7)

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CESI - CENTRO ELETTROTECNICO SPERIMENTALE ITALIANO 'GIANCINTO MOTTA' SPA

Italy

ENEL PRODUZIONE S.P.A.

Italy

KW INTERNATIONAL LIMITED

United Kingdom

NORGES TEKNISK-NATURVITENSKAPELIGE UNIVERSITET NTNU

Norway

REN - REDE ELECTRICA NACIONAL, S.A.

Portugal

SINTEF - STIFTELSEN FOR INDUSTRIELL OG TEKNISK FORSKNING VED NORGES TEKNISKE HOEGSKOLE

Norway

UNIVERSIDAD DE CASTILLA - LA MANCHA

Spain

Project information

Grant agreement ID: IST-1999-12088

  • Start date

    1 January 2000

  • End date

    30 June 2002

Funded under:

FP5-IST

  • Overall budget:

    € 3 305 411

  • EU contribution

    € 1 799 064

Coordinated by:

IBERDROLA INGENIERIA Y CONSULTORIA, S.A.

Spain