1

AbstractDemand response and dynamic pricing programs

are emerging in greater numbers as policy makers look for higher
efficiencies and new mechanisms to integrate distributed
resources into system operations. The behavior of demand-side
resources (including distributed generation, storage, and load),
their interaction with the power system, and their operating
characteristics under different electric market scenarios raise
many questions for system operators, market operators, and
regulators. Computer simulation provides a powerful tool for
investigating these issues.
This paper discusses the use of GridLab-D as simulation
environment to model the behavior of distributed resources in
detail such that resources interact in new market environments
while observing the physical constraints of system operation.
GridLab-D provides an open source platform for integrating
demand-side models with power system models and market
operation models. The flexibility of this environment will be
discussed as well as some of the findings emerging from having
this simulation capability.

Index Termspower simulation, power modeling, power
markets, energy markets, load modeling.
I. INTRODUCTION
significant aspect of a smart grid is its flexibility to
incorporate distributed energy resources (DER
generation, storage, and demand) into system operations. The
vast numbers of these resources presents technical changes to
how they can be effectively and reliability coordinated while
preserving the integrity and resilience of the greater system.
Complex systems techniques are being researched, tested, and
demonstrated [1] [2]. In particular, markets can be
formulated to provide an efficient mechanism for distributed
decision-making that optimizes the aggregate response to
changing conditions by seeking local objectives.
Experimentation through the use of simulation tools can
provide important insights into such system behavior, and
these tools can eventually become the forerunners of tools for
real-time analysis and planning studies.
GridLAB-D is an open source power distribution system

Development of GridLAB-D is funded by the US Department of Energy and
managed by Pacific Northwest National Laboratory, which is operated by
Battelle Memorial Institute for the US Department of Energy under contract DE-
AC65-76RLO1830.
All registered trademarks are hereby recognized.
D. P. Chassin and S. E. Widergren are with Pacific Northwest National
Laboratory in Richland, Washington 99352. They may be contacted by email at
david.chassin@pnl.gov and steve.widergren@pnl.gov.
simulation environment [3]. It incorporates advanced
modeling techniques, with high-performance algorithms to
model end-use equipment and consumer behavior, coupled
with distribution automation models, and software integration
tools for users of many power system analysis tools. This
environment is a work in progress. The most important new
capabilities slated for GridLAB-D include
extended quasi-steady state time-series solutions;
end-use models including appliances and equipment
models, consumer models, all implemented with agent-
based simulation methods;
distributed energy resource models, including
appliance-based load shedding technology, and
distributed generator and storage models;
retail market simulation tools, including contract
selection, business and operations simulation tools,
models of SCADA controls, and metering
technologies;
external links to Matlab
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, MySQL
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, Microsoft
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Excel
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and Access
TM
, GoogleEarth
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, GnuPlot and
other text-based tools, as well as some commercial
power distribution modeling systems; and
the ability to run efficiently on multicore and
multiprocessor machines.
GridLAB-D has been validated with both existing end-use
simulation and standard distribution analysis tools. In
addition, the ability to integrate with many other simulation
tools offers the ability to study rate cases to determine
whether the price differentials are sufficient to encourage
customer adoption; study the potential and benefit of
deploying distributed energy resources, such as grid-
responsive appliances; or study the business cases for
technologies like automated meter reading, distribution
automation, retail markets, or other late-breaking
technologies. In addition, the tool allows one to study the
interactions between multiple technologies, such as the
interaction between under-frequency load-shedding remedial
action strategies with appliance-based load-relief systems.
The computational environment is capable of simulating
distribution system behavior over time intervals ranging from
a few seconds to many decades, gathering data on the
interaction between physical phenomena, business systems,
markets and regional economics, and consumer behaviors.
The results can include many power system statistics, such as
reliability metrics (e.g., SAIDI, the system average
Simulating Demand Participation in
Market Operations
D. P. Chassin, Senior Member, IEEE and S. E. Widergren, Senior Member, IEEE
A
978-1-4244-4241-6/09/$25.00 2009 IEEE
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interruption duration index), and business metrics such a
profitability, revenue rates of return, and per customer or per
line-mile cost metrics.
II. THE GRIDLAB-D SYSTEM
A. What is GridLAB-D?
GridLAB-D is a flexible simulation environment that can
be integrated with a variety of third-party data management
and analysis tools. At its core, GridLAB-D determines the
simultaneous state of millions of independent devices, each of
which is described by multiple differential equations solved
only locally for both state and time. The advantages of the
core algorithm over traditional finite difference-based
simulators are: 1) greater accuracy; 2) handles widely
disparate time scales, ranging from sub-second to many years;
and 3) ease of integration with new modules and third-party
systems. The advantage over tradition differential-based
solvers is that it is not necessary to integrate all the devices
behaviors into a single set of equations that must be solved.
The simulation system also includes modules to perform the
following system simulation functions:
Power flow and controls, including distributed
generation and storage
End-use appliance technologies, equipment and
controls
Data collection on every property of every object in the
system, and boundary condition management including
weather and electrical boundaries.
Additional planned modules are being developed to
provide additional functionality, including:
Consumer behavior including daily, weekly, and
seasonal demand profiles, price response, and contract
choice
Energy operations such as distribution automation,
load-shedding programs, and emergency operations.
Business operations such as retail rate, billing, and
market-based incentive programs.
B. How does GridLAB-D work?
GridLAB-D includes a suite of tools to build and manage
studies, and analyze results. Existing and planned tools
include:
Agent-based and information-based modeling tools
that allow you to create detailed models of how new
end-use technologies, distributed energy resources,
distribution automation, and retail markets interact and
evolve over time.
Tools to create and validate rate structures, examine
consumer reaction, and verify the interaction and
dependence of programs with other technologies and
wholesale markets.
Interfaces to industry-standard power systems tools
and analysis systems.
Extensive data collection tools to permit a wide variety
of analyses.

The simulator can examine the detailed interplay of the
many parts of a distribution system. Depending on the
analysis problem, users can integrate highly detailed models
to mitigate the danger of simplifying assumptions or use
reduced-order models as needed to speed up processing and
data entry. Through simulation studies, the tool is expected to
find problems with market program offerings and business
strategies.
C. Who uses GridLAB-D?
Todays power systems simulation tools study specific
aspects of power system operations or market behavior, but
new tools are required to provide the analysis capabilities for
the forces driving change in the electric energy industry. The
combined influence of fast-changing information technology,
novel and cost-effective distributed energy resources, multiple
and overlapping energy markets, and new business strategies
result in very high uncertainty about the success of these
important innovations. Concerns expressed by utility
engineers, regulators, various stakeholders, and consumers
can be addressed by using simulation. Some example uses
included:
Rate structure analysis. Multiple differentiated
energy products based on new rate structure offerings
to consumers is very attractive to utilities because it
creates the opportunity to reveal demand elasticity and
gives utilities the ability to balance supplier market
power in the wholesale markets. The challenge is
designing rate structures that are both profitable and
attractive to consumers. The simulator provides the
ability to model consumer choice behavior in response
to multiple rate offerings (including fixed rates,
demand rates, time-of-day rates, and real-time rates) to
determine whether a suite of rate offerings is likely to
succeed.
Distributed resources. The advent of new DER
technologies, such as on-site distributed generation,
building combined heat and power systems, and grid-
responsive appliance controls creates a number of
technology opportunities and challenges. The
simulator can be configured to evaluate the
cost/benefit trade-off between infrastructure expansion
investments and distributed resources investments by
including the other economic benefits of DER (e.g.,
increase wholesale purchasing elasticity, improved
reliability metrics, ancillary services products to sell in
wholesale markets).
Peak load management. Many peak-shaving
programs and emergency curtailment programs have
failed to deliver the expected benefits. The simulation
environment can be calibrated to observe consumer
behavior to understand its interaction with various
peak shaving strategies. The impact of consumer
satisfaction on the availability of peak-shaving
3
resources can be evaluated and a more accurate
forecast of the true available resources can be
determined. It can also evaluate the consumer
rebound effect following one or more curtailment or
load-shed events in a single day.
Distribution automation design. The simulator
offers capabilities that support the design and analysis
of distribution automation technology, to allow
utilities to offer differentiating levels of reliability
within the same system by managing power closer to
the point of use.
III. EXISTING AND NEAR-TERM MODELING
The following modules are incorporated in GridLAB-D or
will soon be available.
A. Power Flow Modeling
The power flow component is separated into a distribution
module and a transmission module. While the distribution
systems are the primary focus of the tool, the transmission
module is included so that the interactions between the two
systems can be examined. When the integration of these two
modules is complete it will be possible to examine how smart
loads on the distribution system affect the transmission
system. Traditionally the ability to examine interactions on
this level has been limited by computational power; the use of
multiple processors is how this is addressed in GridLAB-D
[4].
B. End-Use Load Modeling
Commercial and residential end-uses are implemented
using the Equivalent Thermal Parameters (ETP) model [5].
An ETP model characterizes the heat transfers and dynamic
thermal properties of a building using electronic component
equivalents. These are differential models solved for both
time as a function of state and state as a function of time.
Currently supported residential end-uses are heat-pumps,
resistance heating, electric hot water heaters, washer and
dryers, cooking (range and microwave), electronic plugs and
lights. Commercial loads are simulated using an aggregate
multi-zone ETP model that will be enhanced with more
detailed end-use behavior in coming versions.
End-uses which are demand responsive require additional
control code to implement the load curtailment strategies.
The test case used to demonstrate this capability is based on
the Olympic Peninsula Testbed Demonstration project [6],
which was conducted by the US Department of Energy,
Bonneville Power Administration, and a number of industry
and academic collaborators. This project included a number
of commercial and residential loads, which purchased
electricity using either traditional fixed price, time-of-use with
critical peak price (TOU/CPP), or real-time price contracts
(RTP).
The commercial and residential customers who used RTP
required a bidding strategy that would allow them to choose
the desired objective (economy versus comfort) and the
setpoints for the different times of day, and days of week.
This control strategy was implemented within the controller
code and the simulation model must include the same control
code: controllers observe the present conditions every five
minutes and compute a bid price and quantity for the next five
minutes. The utilitys distribution market is then cleared at
the end of each five-minute interval and the clearing price is
posted to all customers. Each device that bids at or above the
clearing price is allowed to run, and all the devices that bid
below are not allowed to run. The price response for air-
conditioners was implemented by adjusting the setpoint
temperature and the water heaters simply increase the
probability of curtailment as the price went up.
The simulators end-use models for the air-conditioners
and water heater RTP use similar market bid/response control
code as implemented in the Olympic Peninsula project.
Controllers must be implemented to provide the additional
capability that is not provided by the generic end-use model,
as described above.
A similar approach was used for both commercial building
HVAC systems as well as the municipal water pumping loads.
The details of these implementations are provided in the
previously cited report.
C. Market Systems
The simulator implements a generic double auction for all
market clearing processes. In addition, an owner object is
used to keep journals for arbitrary categories of financial
transactions.
Devices submit price/quantity bids to buy or sell energy on
the distribution system. Loads bid to purchase energy over
the coming five-minute interval at a particular price. Loads
that have non-synchronous generation bid the expected load at
the price to dispatch the generating unit. All other loads use a
24-hour price history to determine the expectation price by
evaluating the difference between the objective and current
conditions and adjusting the bid up or down based on how
well the objective is being met.
Generator used a cost function to adjust their bid prices for
the generators available capacity. The bulk supply is
obtained at the wholesale price for the available capacity on
the feeder under the present conditions.
The complete supply and demand curves are assembled at
five-minute intervals and the market is cleared, with the
clearing price being published. The clearing quantity
establishes the expected feeder load and any distribution
generation dispatch request.
Transaction logs are used to track energy costs for
customers, distribution generators, and the utility. These logs
are used to gather monthly, yearly, and life-cycle cost and
revenues, as appropriate.
IV. INTEGRATING OTHER SIMULATION MODULES
At its core, GridLAB-D can determine the simultaneous
state of millions of independent devices, each of which is
described by multiple differential equations solved only
locally for both state and time. The advantages of the
4
approach used over traditional finite difference-based
simulators are: 1) greater accuracy; 2) handles widely
disparate time scales, ranging from sub-seconds to many
years; and 3) ease of integration with new modules and third-
party systems. The advantage over traditional differential-
based solvers is that it is not necessary to integrate all the
device's behaviors into a single set of equations that must be
solved.
The main processing loop updates each object by passing
to it a timestamp indicating the desired synchronization time.
These synchronization calls attempt to advance each object's
internal clock to the time indicated by the global clock, and if
successful they returns the time of the next expected change
in each objects states. An object state change is one which
requires the equilibrium equations or conservation laws of the
system to be re-evaluated. When an object's state changes, all
the other objects in the simulator are given an opportunity to
consider the implications of the change. They can update
other objects properties and alter the time and state of their
next change. The core continues calling objects, advancing
the global clock when necessary, and continuing in this way
until all objects indicate that no further state changes are
expected. This is the equilibrium condition and the simulation
consequently ends.
A. Simulation Integration Requirements
Because the simulator is an agent-based system, the
simplest way to integrate other modules is to treat them as
agents (types of which are called classes, and instances of
which are called objects) within the simulation environment.
An object must meet the following requirements to operate
successfully.
1. Objects must have both a time and state function for
every time-interval, i.e., it must be possible to solve the
time until the next state change as well as the state at a
particular future moment in time. For example, a water
heater agent must always be able to compute how long
until the heater coil turns on, as well as determine
whether the heater coil is still on in 30 seconds.
2. Objects must be able to publish some or all of the
properties that other objects depend on, as well as
allow other objects to change certain other properties
as required. For example, a transformer must be able
to observe the voltage of both buses it is connected to.
3. Objects must be able to specific their dependencies on
other objects. For example, a transformer must be able
to determine its current injection from the two buses it
is connected to.
4. Objects must make certain critical behaviors available
to others. For example, the market agent must allow
loads and generator to submit bids.
It is possible to make large complex agents, such as an
agent to solve powerflow using a Newton-Raphson method
instead of the current forward-back sweep and Gauss-Seidel
methods, although this has not yet been done. Furthermore,
there is no necessity that GridLAB-D be the tool that
determines how the global clock is advanced, meaning that
external tools, or indeed a real-time clock can govern the
simulation.
The ability to handle highly heterogeneous models makes
coordination of the data representation very critical. Naming
conventions are currently employed, and the current suite of
modules employs a relatively simple data model. Many of
the interchange issues, such as unit conversion and data type
conversion are handled automatically during import/export
operations. However, the problem of maintaining consistent
and compatible naming conventions, as well as standardizing
the representation of classes of object remains a difficult one.
B. Targeted Tools for Integration
Two significant integration efforts are planned for the
immediate future. These address two aspect of electric
system operating that are not addressed by the basic suite of
modules implemented early on: distribution system dynamics
and wholesale markets/bulk power operations. The current
plans are to begin integrating Electric Power Research
Institute (EPRI) Distribution System Simulation (DSS) [7],
which has been recently ported to an open-source
implementation paving the way for wide-spread use of the
tool, including integration with GridLAB-D. The second is a
proposal by Iowa State University to integrate the AMES
Wholesale Power Market Testbed [8].
In addition, an effort is being initiated to implement a
Multispeak [9] compatibility module that would enable data
exchange between the simulator and a number of commercial
distribution system applications. Although this module would
not enable direct integration at the level of the concurrent
solution that GridLAB-D can provide, it does enable the
exchange of models between other application packages and
the simulator.
V. TESTING AND VALIDATION
Testing of the power system components of the tool is done
in 2 steps; unit tests, and integrated tests. The unit tests are
designed to ensure that the objects that represent individual
components, such as a line section, are properly implementing
their functions. This is especially important since the
distribution system is modeled in accordance with [10], which
provides a complete representation of the system.
The second step in testing and validation utilizes the IEEE
Distribution Test Feeders [11]. In particular the 4 node, 13
node, and 37 node test feeders were used. By using the IEEE
Distribution Test Feeders we confirmed that both the solution
method and implementation are functioning correctly in the
simulator.
Integrated validation is much more challenging to perform.
For one thing, there are no other equivalent simulation
environments that can be used for reference to compare
results against. In addition, the complexity of the models and
the huge volume of output make direct comparison of results
very difficult and probably inconclusive. This requires that
higher level comparisons be employed, such as statistical
techniques and comparisons of integrated results, such as
5
energy use, load shape statistics, price and load duration
curves, etc.
These challenges have not be overcome to date, and we
foresee a need for significant work to identify a more formal
approach to validating simulation systems of the complexity
of GridLAB-D
VI. CONCLUSION
We have shown how an agent-based simulation
environment can be used to examine utility demand response
programs at a level of detail that has historically been difficult
to do. Various incentive programs and rate structures can be
tested using detailed models of the distribution system, solved
concurrently with detailed models of residential and
commercial loads, distribution generation, distributed energy
resources, and distribution automation. We have explained
how these tools are built and integrated with GridLAB-Ds
core solver, and how other tools might be integrated in the
future.
Planned activities include integration of the EPRI DSS
distribution dynamics simulation and Iowa AMES wholesale
market testbed system, as well as a general purpose data
exchange module using Multispeak.
VII. REFERENCES
[1] G. Conzelmann, G. Boyd, V. Koritarov, T. Veselka, Multi-Agent Power
Market Simulation Using EMCAS, IEEE PES GM, 2005.
[2] L. Kiesling and D. P. Chassin, Beneficial Complexity: A field
Experiment in Technology, Institutions, and Institutional Change in the
Electric Power Industry, Workshop in Political Theory and Policy
Analysis, Indiana University, Fall 2008 Colloquia:
http://www.indiana.edu/~workshop/colloquia/papers/kiesling_paper.pdf
[3] D. P. Chassin, K. Schneider, and C. Gerkensmeyer, GridLAB-D: An
Open-Source Power Systems Modeling and Simulation environment,
IEEE PES T&D Conf. and Expo., April 2008.
[4] D. P. Chassin, P. R. Armstrong, D. G. Chavarria-Miranda, R. T.
Guttromson, Gauss-Seidel Accelerated: Implementing Flow Solvers on
Field Programmable Gate Arrays, IEEE PES GM, 2006.
[5] R. G. Pratt and Z. T. Taylor, Development and Testing of an Equivalent
Thermal Parameter Model of Commercial Buildings From Time-Series
End-Use Data, Richland, WA: Pacific Northwest Laboratory, Apr. 1994.
[6] D. P. Chassin, D. J. Hammerstrom, and J. G. DeSteese, The Pacific
Northwest Demand Response Market Demonstration, IEEE PES GM,
2008.
[7] T. E. McDermott, An Open Source Distribution System Simulator,
IEEE PES GM, 2006.
[8] S. Widergren, J. Sun, and L. Testfatsion, Market Design Test
Environments, IEEE PES GM, 2006.
[9] G. A. McNaugton and M. E. Gordon, Development of a Real-Time
framework for Enterprise Integration NRECAs MultiSpeak2
Specification, IEEE Rural Electric Power Conference, 2004.
[10] W. H. Kersting, 2nd ed., Distribution System Modeling and Analysis.
Boca Raton: CRC Press, 2007.
[11] IEEE Radial Test Feeders- Available through the IEEE Distribution
System Analysis Subcommittee:
http://ewh.ieee.org/soc/pes/dsacom/testfeeders.html
VIII. BIOGRAPHIES
David P. Chassin (M2003, SM05) is a staff scientist with
the Energy Science and Technology Division at Pacific
Northwest National Laboratory where he has worked since
1992. He was Vice-President of Development for Image
Systems Technology from 1987 to 1992, where he pioneered
a hybrid raster/vector computer aided design (CAD)
technology called CAD Overlay
TM
. He has experience in the
development of building energy simulation and diagnostic systems, leading the
development of Softdesk Energy and DOEs Whole Building Diagnostician. His
recent research focuses on emerging theories of complexity as they relate to
high-performance simulation and modeling in building controls and power
systems and is currently responsible for the design and development of DOEs
GridLAB-D simulator.
Steve Widergren (M1978, SM1992) contributes to new
solutions for reliable operation of electric power systems.
Common throughout his career is the application of
information technology to power engineering problems
including, simulation, control, and system integration. He is
a principal engineer at Pacific Northwest National
Laboratory and Administrator for the GridWise Architecture
Council a group formed to enable interoperability of automated systems related
to the electric system. Prior to joining the Laboratory, he engineered and
managed energy management systems products for electric power operations and
supported power system computer applications in both supplier and utilities
sectors. Application areas include information modeling, SCADA systems, and
power system reliability assessment tools. He received his BS and MS degrees
in electrical engineering from the University of California, Berkeley. He is
actively involved in the IEEE Power Engineering Society and participates in
standards efforts that bridge power engineering with information technology.