Trading strategies for distribution company with stochastic distributed energy resources

Chunyu Zhang, Qi Wang, Jianhui Wang, Magnus Korpås, Pierre Pinson, Jacob Østergaard and Mohammad E. Khodayar

Applied Energy, 2016, vol. 177, issue C, 625-635

Abstract: This paper proposes a methodology to address the trading strategies of a proactive distribution company (PDISCO) engaged in the transmission-level (TL) markets. A one-leader multi-follower bilevel model is presented to formulate the gaming framework between the PDISCO and markets. The lower-level (LL) problems include the TL day-ahead market and scenario-based real-time markets, respectively with the objectives of maximizing social welfare and minimizing operation cost. The upper-level (UL) problem is to maximize the PDISCO’s profit across these markets. The PDISCO’s strategic offers/bids interactively influence the outcomes of each market. Since the LL problems are linear and convex, while the UL problem is non-linear and non-convex, an equivalent primal–dual approach is used to reformulate this bilevel model to a solvable mathematical program with equilibrium constraints (MPEC). The effectiveness of the proposed model is verified by case studies.

Keywords: Distributed energy resources (DERs); Proactive distribution company (PDISCO); Electricity markets; Bilevel game-theoretic model; Multi-period AC power flow; Mathematical program with equilibrium constraints (MPEC); Mathematical program with primal and dual constraints (MPPDC) (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

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DOI: 10.1016/j.apenergy.2016.05.143

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