Modeling the Strategic Behavior of an Active Distribution Network in the ISO Markets

Conference · Mon Dec 20 04:00:00 EST 2021

DOI:https://doi.org/10.1109/PESGM46819.2021.9638031· OSTI ID:1847887

Ravi, Abhijith; Bai, Linquan; Cecchi, Valentina; Xue, Yaosuo; Ding, Fei

With increasing integration of distributed energy resources (DERs), active distribution networks (ADNs) can actively participate in the electricity markets by dispatching their DERs, which can change the existing electricity market paradigm. It is essential to investigate the strategic behaviors of ADNs and their DER dispatch when they participate in the wholesale market as price-makers. This paper proposes a bi-level optimization model to study the strategic behavior of an ADN in both energy and reserve markets. The optimal scheduling of DERs in the ADN is modeled as the upper level problem and the joint energy and reserve market-clearing of the ISO is modeled as the lower-level problem. The two-level optimization models exchange bidding information and energy/reserve prices with each other. The proposed bi-Ievel optimization problem is converted to a mathematical programming with equilibrium constraints (MPEC) by using Karush-Kuhn Tucker (KKT) conditions and strong duality theory. Further, the MPEC problem is reformulated as a computationally-solvable mixed integer second order cone programming (MISOCP) model. The simulation results on an illustrative case demonstrate the impact of the strategic bidding of the ADN on the day-ahead energy and reserve market prices.

• Research Organization: National Renewable Energy Laboratory (NREL), Golden, CO (United States)
• Sponsoring Organization: USDOE Office of Electricity, Advanced Grid Modeling Program
• DOE Contract Number: AC36-08GO28308
• OSTI ID: 1847887
• Report Number(s): NREL/CP-5D00-82302; MainId:83075; UUID:d02a7a7d-58d6-4232-80f8-b3dca51e27d7; MainAdminID:63986
• Country of Publication: United States
• Language: English

Related Subjects

POWER TRANSMISSION AND DISTRIBUTION
active distribution network
bilevel optimization
day-ahead market
mathematical program with equilibrium constraints
strategic bidding