Strategy-making for a proactive distribution company in the real-time market with demand response

Chunyu Zhang, Qi Wang, Jianhui Wang, Magnus Korpås and Mohammad E. Khodayar

Applied Energy, 2016, vol. 181, issue C, 540-548

Abstract: This paper proposes a methodology to optimize the trading strategies of a proactive distribution company (PDISCO) in the real-time market by mobilizing the demand response. Each distribution-level demand is considered as an elastic one. To capture the interrelation between the PDISCO and the real-time market, a bi-level model is presented for the PDISCO to render continuous offers and bids strategically. The upper-level problem expresses the PDISCO’s profit maximization, while the lower-level problem minimizes the operation cost of the transmission-level real-time market. To solve the proposed model, a primal-dual approach is used to translate this bi-level model into a single-level mathematical program with equilibrium constraints. Results of case studies are reported to show the effectiveness of the proposed model.

Keywords: Demand response (DR); Proactive distribution company (PDISCO); 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
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Citations: View citations in EconPapers (11)

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DOI: 10.1016/j.apenergy.2016.08.058

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