Integrating High-DER-Penetrated Distribution Systems into Energy Market with Feasible Region and Accompanying Strategic Bidding

Tianhui Zhao (), Jingbo Zhao, Bingcheng Cen, Zhe Chen and Yongyong Jia
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Tianhui Zhao: State Grid Jiangsu Electric Power Co., Ltd., Research Institute, Nanjing 211102, China
Jingbo Zhao: State Grid Jiangsu Electric Power Co., Ltd., Research Institute, Nanjing 211102, China
Bingcheng Cen: State Grid Jiangsu Electric Power Co., Ltd., Research Institute, Nanjing 211102, China
Zhe Chen: State Grid Jiangsu Electric Power Co., Ltd., Research Institute, Nanjing 211102, China
Yongyong Jia: State Grid Jiangsu Electric Power Co., Ltd., Research Institute, Nanjing 211102, China

Energies, 2025, vol. 18, issue 21, 1-21

Abstract: With the increasing penetration of distributed energy resources (DERs) in distribution networks, traditional passive distribution systems are evolving into active and flexible systems capable of participating in the transmission-level energy market. Integrating distribution networks into a transmission-centric market-clearing model introduces challenges, such as capturing internal operational constraints and reflecting the economic features of distribution systems. To this end, this paper proposes a market integration method for distribution networks based on a feasible region and an accompanying bidding strategic bidding method to enable their efficient participation in the transmission-level electricity market. With a two-stage adaptive robust optimization framework, the feasible region that preserves operational characteristics of the distribution system and ensures the satisfaction of operational constraints within the distribution system is first depicted. The feasible region appears as time-coupled box-shaped regions. On this basis, a strategic bidding method is proposed based on the nested segmentation of the feasible region, jointly considering power and reserve. With it, the bidding prices of energy and reserve can be prepared, and then, together with the feasible region, can be smoothly integrated into the transmission-level market model. Numerical case studies demonstrate the effectiveness of the proposed method.

Keywords: distributed energy resources; feasible region; two-stage adaptive robust optimization; energy and reserve bidding; distribution system (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: 2025
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