Trading strategies for distribution company with stochastic distributed energy resources

Journal Article · Thu Sep 01 04:00:00 EDT 2016 · Applied Energy

DOI:https://doi.org/10.1016/j.apenergy.2016.05.143· OSTI ID:1340688

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

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.

• Research Organization: Argonne National Lab. (ANL), Argonne, IL (United States)
• Sponsoring Organization: USDOE Office of Electricity Delivery and Energy Reliability (OE)
• DOE Contract Number: AC02-06CH11357
• OSTI ID: 1340688
• Journal Information: Applied Energy, Journal Name: Applied Energy Journal Issue: C Vol. 177; ISSN 0306-2619
• Publisher: Elsevier
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
Bilevel game-thoretic model
Distributed energy resources (DERs)
Electricity markets
Mathematical program with primal and dual constraints (MPPDC)
Mathmatical program with equilibrium constraints (MPEC)
Multi-period AC power flow
Proactive distribution company (PDISCO)