PowerMax performs a “perfect” portfolio optimization for short term resource selection
LCG Consulting has developed PowerMax for short-term portfolio revenue optimization. PowerMax
is a cutting-edge model for generating operational plans that optimally balance resources and
obligations. It assists market participants to analyze their portfolio for one day, two days or
one week and to maximize the income potential of their portfolio while meeting the operational
and regulatory constraints.
PowerMax evaluates and captures all market opportunities as they develop over the day and
optimally incorporates them in the portfolio. Market participants use the model to prepare
day-ahead with two-day or one-week look-ahead resource allocation such as generation,
energy and ancillary services and fuel consumption.
PowerMax incorporates a powerful engine to accomplish the tasks using the latest development
in optimization technology. The model determines the best unit commitment decisions in
conjunction with market opportunities including block purchases and sales. Some of the key
objectives of PowerMax design are as follows
- Use true Mixed Integer Programing (MIP) algorithm for portfolio optimization
- Accurately dispatch participants’ own generators in conjunction with procurement of energy and ancillary services (A/S) to meeting all the operating requirements
- Weigh in the benefits of system sales, hub purchases, tolling and bilateral contracts
- Determine the best unit commitment taking into consideration dynamically changing market environment such as loads, congestion, outages and opportunities
- Obey all emissions, fuels and other operating constraints
- Modern intuitive user interface and customizable reporting
Making sound decisions regarding daily portfolio optimization involves a high degree of complexity
and requires a thorough understanding of the dynamic nature of the markets. PowerMax provides
the accuracy, flexibility and sophistication of modeling the day-ahead and real-time markets.
It combines the latest computer technology, computational engines and theory of market operations.
It is developed by renowned energy modelers, computer scientists and mathematicians.
PowerMax’s portfolio representation is extremely detailed and captures all parameters needed in modeling
short-term operations on an hourly basis. Its key features are described below:
PowerMax performs a complete co-optimization of energy and ancillary services. Its algorithm is
designed to solve all parts of the unit commitment problem simultaneously, thus co-optimizing
everything including energy, capacity, ancillary services, bilateral obligations and market
purchases and sales.
The ancillary service requirements are specified for each generator’s capacity for serving each
ancillary service product. Ancillary service products include: regulation up, regulation down,
spinning, non-spinning and replacement
Fast and Intuitive Interface
Careful attention has been made to allow for rapid, flexible and automated updates to its database.
Clients can choose from using the exposed Application Programmers Interface (API) or imports of XML,
CSV or even Microsoft Excel spreadsheets. Further, users are free to make decisions about exactly
which data will be updated and if any particular fields need to be overridden. Each update will
be incorporated within a new scenario (or set of scenarios) and all updates are tracked and can
be compared with previous versions.
In addition, PowerMax has an XLM interface to quickly generate a large number of scenarios by simply
specifying a range of obligations (e.g. loads) and prices at different heat rates and other variables
that trader support team would like to develop. These scenarios are run automatically and the results
displayed to assist daily and hourly decision-making. The model can also be used for real-time trades.
User Friendly Reporting
Some PowerMax input and output screens are presented next.