Balancing the Power Grid with Cheap Assets

We have all heard that there is growing need to secure resources to obtain supply-demand balance in a power grid facing increasing volatility from renewable sources of energy. There are mandates for utility scale battery systems in regions all over the world, and there is a growing science of "demand dispatch" to obtain virtual energy storage from flexible electric loads such as water heaters, air conditioning, and pumps for irrigation. The question addressed in this tutorial is how to manage a large number of assets for balancing the grid. The focus is on variants of the economic dispatch problem, which may be regarded as the "feed-forward" component in an overall control architecture. 1) The resource allocation problem is identical to a finite horizon optimal control problem with degenerate cost-so called "cheap control". This implies a form of state space collapse, whose form is identified: the marginal cost for each load class evolves in a two-dimensional subspace, spanned by a scalar co-state process and its derivative. 2) The implication to distributed control is remarkable. Once the co-state process is synthesized, this common signal may be broadcast to each asset for optimal control. However, the optimal solution is extremely fragile, in a sense made clear through results from numerical studies. 3) Several remedies are proposed to address fragility. One is described through "robust training" in a particular Q-learning architecture (one approach to reinforcement learning). In numerical studies it is found that specialized training leads to more robust control solutions.