A Comprehensive Framework for Long-Term Resiliency Investment Planning under Extreme Weather Uncertainty for Electric Utilities
Organizations: Boston Consulting Group’s AI Science Institute, Pittsburgh, PA, USA
Abstract
Electric utilities must make massive capital investments in the coming years to respond to explosive growth in demand, aging assets and rising threats from extreme weather. Utilities today already have rigorous frameworks for capital planning, and there are opportunities to extend this capability to solve multi-objective optimization problems in the face of uncertainty. This work presents a four-part framework that 1) incorporates extreme weather as a source of uncertainty, 2) leverages a digital twin of the grid, 3) uses Monte Carlo simulation to capture variability and 4) applies a multi-objective optimization method for finding the optimal investment portfolio. We use this framework to investigate whether grid-aware optimization methods outperform model-free approaches. We find that, in fact, given the computational complexity of model-based metaheuristic optimization methods, the simpler net present value ranking method was able to find more optimal portfolios with only limited knowledge of the grid.
Figures & tables
| Metric | NPV + FIFO | NSGA-II + ILP | ||
|---|---|---|---|---|
| Median IQR | 95% Confidence Interval | Median IQR | 95% Confidence Interval | |
| Cost of total unserved energy [$] | [ , ] | [ , ] | ||
| SAIDI-MED [min] | [ , ] | [ , ] | ||
| SAIFI-MED | [ , ] | [ , ] | ||
| CAIDI-MED [min] | [ , ] | [ , ] | ||
| Metric | NPV + FIFO | NSGA-II + ILP |
|---|---|---|
| Total investment portfolio cost [$] | 3720 | |
| Total number of investments | ||
| Total days to complete work | ||
| Cost of total resistive losses [$] | 494 | |
| Growth in plant value [$] | 15300 | |
| Average capacity headroom [%] | 97.4 |
| Metric | NPV + FIFO | NSGA-II + ILP | ||
|---|---|---|---|---|
| Median IQR | 95% Confidence Interval | Median IQR | 95% Confidence Interval | |
| Cost of total unserved energy [$M] | [ , ] | [ , ] | ||
| SAIDI-MED [hr] | [ , ] | [ , ] | ||
| SAIFI-MED | [ , ] | [ , ] | ||
| CAIDI-MED [hr] | [ , ] | [ , ] | ||
| Metric | NPV + FIFO | NSGA-II + ILP |
| Total investment portfolio cost [$] | 450 000 | 500 |
| Total number of investments | ||
| Total days to complete work | ||
| Cost of total resistive losses [$] | 196 000 | 196 000 |
| Growth in plant value [$] | 000 | -142 000 |
| Average capacity headroom [%] | 95.9 | 95.9 |
| Category | Metric | Definition |
| Resilience | Cost of total unserved energy | The total cost of energy not delivered to meet load demand due to outages caused by extreme weather. |
| SAIDI-MED | Average total duration of power interruptions per customer per year due to extreme weather events. | |
| SAIFI-MED | Average total number of outages experienced per customer per year due to extreme weather events. | |
| CAIDI-MED | Average outage duration experienced per customer per year due to extreme weather events. | |
| Growth | Growth in distribution plant value | The change in the total value of distribution assets over the planning period, accounting for depreciation (modeled as a straight line). |
| Reliability | Average capacity headroom of lines | Average available margin before reaching thermal limits on lines. |
| Parameter | Value |
|---|---|
| Total budget | $20,000 |
| Total time | 1 year |
| Total technicians | 14 |
| Simulation start/end | 2016-01-01 – 2016-12-31 |
| Possible investments | 9 underground lines upgraded to higher-rated conductors; 4 overhead lines buried. |
| Outage date for unserved energy calculation | 2016-07-01 |
| Parameter | Value |
|---|---|
| Total budget | $500,000 |
| Total time | 90 days |
| Total technicians | 16 |
| Simulation start/end | 2016-01-01 – 2016-03-30 |
| Possible investments | 9 underground lines upgraded to higher-rated conductors; 3 overhead lines buried. |
| Outage date for unserved energy calculation | 2016-07-01 |
Power Systems
Power systems research studies the planning, operation, control, and protection of electrical grids and their integration with energy resources.
See all 231 papers