A novel two-stage stochastic programming model for uncertainty characterization in short-term optimal strategy for a distribution company

Abdollah Ahmadi, Mansour Charwand, Pierluigi Siano, Ali Esmaeel Nezhad, Debora Sarno, Mohsen Gitizadeh and Fatima Raeisi

Energy, 2016, vol. 117, issue P1, 1-9

Abstract: In order to supply the demands of the end users in a competitive market, a distribution company purchases energy from the wholesale market while other options would be in access in the case of possessing distributed generation units and interruptible loads. In this regard, this study presents a two-stage stochastic programming model for a distribution company energy acquisition market model to manage the involvement of different electric energy resources characterized by uncertainties with the minimum cost. In particular, the distribution company operations planning over a day-ahead horizon is modeled as a stochastic mathematical optimization, with the objective of minimizing costs. By this, distribution company decisions on grid purchase, owned distributed generation units and interruptible load scheduling are determined. Then, these decisions are considered as boundary constraints to a second step, which deals with distribution company's operations in the hour-ahead market with the objective of minimizing the short-term cost. The uncertainties in spot market prices and wind speed are modeled by means of probability distribution functions of their forecast errors and the roulette wheel mechanism and lattice Monte Carlo simulation are used to generate scenarios. Numerical results show the capability of the proposed method.

Keywords: Distribution system; Distributed generation; Interruptible load; Stochastic programming (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:117:y:2016:i:p1:p:1-9

DOI: 10.1016/j.energy.2016.10.067

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