Economic Dispatch of Power Retailers: A Bi-Level Programming Approach via Market Clearing Price

Hui Zhou, Jian Ding, Yinlong Hu (), Zisong Ye, Shang Shi, Yonghui Sun and Qiyu Zhang
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Hui Zhou: College of Energy and Electrical Engineering, Hohai University, Nanjing 211100, China
Jian Ding: NARI Technology Corporation Limited, Nanjing 211106, China
Yinlong Hu: College of Energy and Electrical Engineering, Hohai University, Nanjing 211100, China
Zisong Ye: College of Energy and Electrical Engineering, Hohai University, Nanjing 211100, China
Shang Shi: College of Energy and Electrical Engineering, Hohai University, Nanjing 211100, China
Yonghui Sun: College of Energy and Electrical Engineering, Hohai University, Nanjing 211100, China
Qiyu Zhang: Intelligence Network & Innovation Center, China United Network Communications Corporation Limited, Beijing 100037, China

Energies, 2022, vol. 15, issue 19, 1-17

Abstract: For power retailers in a smart grid, it is necessary to design an economic dispatch method to maintain a balance between power supply and demand on the sale side as well as obtain better economic benefits. This study concentrates on the economic dispatch of the dominant retailer in a regional market. The dominant retailer is considered to be equipped with generator resources such as distributed photovoltaics (PV), wind turbines (WT), and microturbines (MT). As one retailer cannot exactly predict the market conditions of other retailers, the retail market is considered to be modeled as a dichotomous-market model consisting of the dominant retailer market and the other retailers market. As a result, a bi-level optimal dispatch model is proposed for the dominant power retailer based on the dichotomous-market model. In the proposed model, the outer problem aims to minimize the costs of purchases under time-of-use (TOU) price given in the market clearing process, while the inner problem is formulated to simulate the process of market clearing. Furthermore, the bi-level model is converted to a single-level model via the Karush–Kuhn–Tucker (KKT) conditions and eventually solved by employing the YALMIP toolbox with Gurobi solver. Finally, a case study is conducted to validate the effectiveness and adaptability of the proposed model, and the analysis of the variables is presented.

Keywords: power retailer; economic dispatch; bi-level programming; chance constraint (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2022
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