IEEE Power & Energy Magazine - May/June 2016 - 30

The GWAC continues to work to build a community of
practice for TE systems through its regular meetings, focused
workshops, and outreach to the industry.

dynamic balance of supply and demand across the entire
electrical infrastructure. To provide safe and reliable
electric service, such a system requires an integrated and
coordinated operational paradigm that clearly delineates
roles and responsibilities between the transmission system
operator (TSO) and distribution system operators (DSOs)
as described in recent reports by Paul De Martini and
Lorenzo Kristov. They describe a DSO defined by a new
minimal set of functional responsibilities. This includes
reliably operating the local distribution system below each
substation, which will entail coordinating operations of the
interconnected DERs, microgrids, and self-optimizing customers, and scheduling interchange with the TSO at the
transmission-distribution interface.

The definition is clearly consistent with the GWAC's definition in that it represents a convergence of economics and
control theory to provide a mechanism for efficient and reliable operation of an electric power system. When homeostatic
control was introduced, however, the technologies necessary
for effective demand-side implementation did not exist.
Bulk Power Markets

Bulk power systems include examples of TE systems in that
they use markets to drive economic efficiency in the balanced
operation of the bulk power system. They do so through
largely centralized operations and in time scales ranging from
years to minutes. Homeostatic control influenced the design
of the wholesale power markets and related system elements
such as security constrained economic dispatch.

History of TE
TE systems represent an example of the saying "what is old
is new again." Though to many in the industry the concepts
may seem new and even radical, their roots are in concepts
proposed in the 1970s and early 1980s by Fred Schweppe
and his colleagues at MIT in an area they came to refer to as
"homeostatic control."
Homeostatic Control

In a 1978 article titled "Power Systems 2000," Schweppe
discussed hierarchical control strategies for the electric
power system. In this article, three levels are defined with
the control problem addressed in more abstract terms as one
goes from the lowest level to the highest. In this approach,
the role of economics in control is included, for example, in
the statement, "Variations in spot price will provide 'soft'
load control." This is in the context of resolving imbalance
between supply and demand. Schweppe was anticipating the
use of dynamic pricing that is included as an element of most
TE approaches today.
In a subsequent paper published in 1980, the MIT team
defined homeostatic control as "an overall concept which
tries to maintain an internal equilibrium between supply
and demand. Equilibrating forces are obtained over longer
time scales (5 min and up) by economic principles through
an Energy Marketplace using time-varying spot prices."
The paper further discusses approaches for achieving faster
"governor-type" action on certain types of loads to allow for
the replacement of turbine-governed systems and spinning
reserves, all topics still under consideration today within the
context of TE systems.
30

ieee power & energy magazine

Engaging Demand-Side Flexibility

One of the precepts of homeostatic control is engaging
demand-side assets with economic signals. Over the past ten
years, there have been field projects demonstrating such concepts. Three of these are the GridWise Olympic Peninsula
Demonstration Project in Washington State, the AEP Ohio
gridSMART Demonstration project in Columbus, Ohio,
and the PowerMatcher projects completed by the TNO, the
Netherlands Organization for Applied Scientific Research.
These three projects used a double-auction market in which
loads bid a price-quantity pair to a local market. The local
market determines the amount of power available for the
coming market time period and closes the market based on
clearing the bids to assure that no more than that quantity
is consumed. Bids are offered and the market cleared for
each market period. This approach does not anticipate the
future beyond the next market interval. The approach has
been shown to be capable of managing distribution feeder or
similar constraints. In the AEP Ohio GridSMART project,
an experimental retail tariff was approved by the Ohio Public Utility Commission.
The Pacific Northwest Smart Grid Demonstration implemented a distributed nodal approach in which each distributed node looked beyond a single time period at a sequence
of time periods in the future. An incentive signal was formulated, representing the cost of power delivered to neighboring
nodes based on an estimate of cost of power available to the
node and the amount of power required. Neighboring nodes
in turn estimate the amount of power needed over the same
set of future time intervals. They based this estimate on their
may/june 2016



Table of Contents for the Digital Edition of IEEE Power & Energy Magazine - May/June 2016

IEEE Power & Energy Magazine - May/June 2016 - Cover1
IEEE Power & Energy Magazine - May/June 2016 - Cover2
IEEE Power & Energy Magazine - May/June 2016 - 1
IEEE Power & Energy Magazine - May/June 2016 - 2
IEEE Power & Energy Magazine - May/June 2016 - 3
IEEE Power & Energy Magazine - May/June 2016 - 4
IEEE Power & Energy Magazine - May/June 2016 - 5
IEEE Power & Energy Magazine - May/June 2016 - 6
IEEE Power & Energy Magazine - May/June 2016 - 7
IEEE Power & Energy Magazine - May/June 2016 - 8
IEEE Power & Energy Magazine - May/June 2016 - 9
IEEE Power & Energy Magazine - May/June 2016 - 10
IEEE Power & Energy Magazine - May/June 2016 - 11
IEEE Power & Energy Magazine - May/June 2016 - 12
IEEE Power & Energy Magazine - May/June 2016 - 13
IEEE Power & Energy Magazine - May/June 2016 - 14
IEEE Power & Energy Magazine - May/June 2016 - 15
IEEE Power & Energy Magazine - May/June 2016 - 16
IEEE Power & Energy Magazine - May/June 2016 - 17
IEEE Power & Energy Magazine - May/June 2016 - 18
IEEE Power & Energy Magazine - May/June 2016 - 19
IEEE Power & Energy Magazine - May/June 2016 - 20
IEEE Power & Energy Magazine - May/June 2016 - 21
IEEE Power & Energy Magazine - May/June 2016 - 22
IEEE Power & Energy Magazine - May/June 2016 - 23
IEEE Power & Energy Magazine - May/June 2016 - 24
IEEE Power & Energy Magazine - May/June 2016 - 25
IEEE Power & Energy Magazine - May/June 2016 - 26
IEEE Power & Energy Magazine - May/June 2016 - 27
IEEE Power & Energy Magazine - May/June 2016 - 28
IEEE Power & Energy Magazine - May/June 2016 - 29
IEEE Power & Energy Magazine - May/June 2016 - 30
IEEE Power & Energy Magazine - May/June 2016 - 31
IEEE Power & Energy Magazine - May/June 2016 - 32
IEEE Power & Energy Magazine - May/June 2016 - 33
IEEE Power & Energy Magazine - May/June 2016 - 34
IEEE Power & Energy Magazine - May/June 2016 - 35
IEEE Power & Energy Magazine - May/June 2016 - 36
IEEE Power & Energy Magazine - May/June 2016 - 37
IEEE Power & Energy Magazine - May/June 2016 - 38
IEEE Power & Energy Magazine - May/June 2016 - 39
IEEE Power & Energy Magazine - May/June 2016 - 40
IEEE Power & Energy Magazine - May/June 2016 - 41
IEEE Power & Energy Magazine - May/June 2016 - 42
IEEE Power & Energy Magazine - May/June 2016 - 43
IEEE Power & Energy Magazine - May/June 2016 - 44
IEEE Power & Energy Magazine - May/June 2016 - 45
IEEE Power & Energy Magazine - May/June 2016 - 46
IEEE Power & Energy Magazine - May/June 2016 - 47
IEEE Power & Energy Magazine - May/June 2016 - 48
IEEE Power & Energy Magazine - May/June 2016 - 49
IEEE Power & Energy Magazine - May/June 2016 - 50
IEEE Power & Energy Magazine - May/June 2016 - 51
IEEE Power & Energy Magazine - May/June 2016 - 52
IEEE Power & Energy Magazine - May/June 2016 - 53
IEEE Power & Energy Magazine - May/June 2016 - 54
IEEE Power & Energy Magazine - May/June 2016 - 55
IEEE Power & Energy Magazine - May/June 2016 - 56
IEEE Power & Energy Magazine - May/June 2016 - 57
IEEE Power & Energy Magazine - May/June 2016 - 58
IEEE Power & Energy Magazine - May/June 2016 - 59
IEEE Power & Energy Magazine - May/June 2016 - 60
IEEE Power & Energy Magazine - May/June 2016 - 61
IEEE Power & Energy Magazine - May/June 2016 - 62
IEEE Power & Energy Magazine - May/June 2016 - 63
IEEE Power & Energy Magazine - May/June 2016 - 64
IEEE Power & Energy Magazine - May/June 2016 - 65
IEEE Power & Energy Magazine - May/June 2016 - 66
IEEE Power & Energy Magazine - May/June 2016 - 67
IEEE Power & Energy Magazine - May/June 2016 - 68
IEEE Power & Energy Magazine - May/June 2016 - 69
IEEE Power & Energy Magazine - May/June 2016 - 70
IEEE Power & Energy Magazine - May/June 2016 - 71
IEEE Power & Energy Magazine - May/June 2016 - 72
IEEE Power & Energy Magazine - May/June 2016 - 73
IEEE Power & Energy Magazine - May/June 2016 - 74
IEEE Power & Energy Magazine - May/June 2016 - 75
IEEE Power & Energy Magazine - May/June 2016 - 76
IEEE Power & Energy Magazine - May/June 2016 - 77
IEEE Power & Energy Magazine - May/June 2016 - 78
IEEE Power & Energy Magazine - May/June 2016 - 79
IEEE Power & Energy Magazine - May/June 2016 - 80
IEEE Power & Energy Magazine - May/June 2016 - 81
IEEE Power & Energy Magazine - May/June 2016 - 82
IEEE Power & Energy Magazine - May/June 2016 - 83
IEEE Power & Energy Magazine - May/June 2016 - 84
IEEE Power & Energy Magazine - May/June 2016 - 85
IEEE Power & Energy Magazine - May/June 2016 - 86
IEEE Power & Energy Magazine - May/June 2016 - 87
IEEE Power & Energy Magazine - May/June 2016 - 88
IEEE Power & Energy Magazine - May/June 2016 - 89
IEEE Power & Energy Magazine - May/June 2016 - 90
IEEE Power & Energy Magazine - May/June 2016 - 91
IEEE Power & Energy Magazine - May/June 2016 - 92
IEEE Power & Energy Magazine - May/June 2016 - 93
IEEE Power & Energy Magazine - May/June 2016 - 94
IEEE Power & Energy Magazine - May/June 2016 - 95
IEEE Power & Energy Magazine - May/June 2016 - 96
IEEE Power & Energy Magazine - May/June 2016 - 97
IEEE Power & Energy Magazine - May/June 2016 - 98
IEEE Power & Energy Magazine - May/June 2016 - 99
IEEE Power & Energy Magazine - May/June 2016 - 100
IEEE Power & Energy Magazine - May/June 2016 - 101
IEEE Power & Energy Magazine - May/June 2016 - 102
IEEE Power & Energy Magazine - May/June 2016 - 103
IEEE Power & Energy Magazine - May/June 2016 - 104
IEEE Power & Energy Magazine - May/June 2016 - Cover3
IEEE Power & Energy Magazine - May/June 2016 - Cover4
http://www.nxtbook.com/nxtbooks/pes/powerenergy_050619
http://www.nxtbook.com/nxtbooks/pes/powerenergy_030419
http://www.nxtbook.com/nxtbooks/pes/powerenergy_010219
http://www.nxtbook.com/nxtbooks/pes/powerenergy_111218
http://www.nxtbook.com/nxtbooks/pes/powerenergy_091018
http://www.nxtbook.com/nxtbooks/pes/powerenergy_070818
http://www.nxtbook.com/nxtbooks/pes/powerenergy_050618
http://www.nxtbook.com/nxtbooks/pes/powerenergy_030418
http://www.nxtbook.com/nxtbooks/pes/powerenergy_010218
http://www.nxtbook.com/nxtbooks/pes/powerenergy_111217
http://www.nxtbook.com/nxtbooks/pes/powerenergy_091017
http://www.nxtbook.com/nxtbooks/pes/powerenergy_070817
http://www.nxtbook.com/nxtbooks/pes/powerenergy_050617
http://www.nxtbook.com/nxtbooks/pes/powerenergy_030417
http://www.nxtbook.com/nxtbooks/pes/powerenergy_010217
http://www.nxtbook.com/nxtbooks/pes/powerenergy_111216
http://www.nxtbook.com/nxtbooks/pes/powerenergy_091016
http://www.nxtbook.com/nxtbooks/pes/powerenergy_070816
http://www.nxtbook.com/nxtbooks/pes/powerenergy_050616
http://www.nxtbook.com/nxtbooks/pes/powerenergy_030416
http://www.nxtbook.com/nxtbooks/pes/powerenergy_010216
http://www.nxtbook.com/nxtbooks/ieee/powerenergy_010216
http://www.nxtbook.com/nxtbooks/pes/powerenergy_111215
http://www.nxtbook.com/nxtbooks/pes/powerenergy_091015
http://www.nxtbook.com/nxtbooks/pes/powerenergy_070815
http://www.nxtbook.com/nxtbooks/pes/powerenergy_050615
http://www.nxtbook.com/nxtbooks/pes/powerenergy_030415
http://www.nxtbook.com/nxtbooks/pes/powerenergy_010215
http://www.nxtbook.com/nxtbooks/pes/powerenergy_111214
http://www.nxtbook.com/nxtbooks/pes/powerenergy_091014
http://www.nxtbook.com/nxtbooks/pes/powerenergy_070814
http://www.nxtbook.com/nxtbooks/pes/powerenergy_050614
http://www.nxtbook.com/nxtbooks/pes/powerenergy_030414
http://www.nxtbook.com/nxtbooks/pes/powerenergy_010214
http://www.nxtbookMEDIA.com