Stochastic Bi‐level Trading Model for an Active Distribution Company with DGs and Interruptible Loads. Issue 2 (13th December 2016)

• Record Type: Journal Article
• Authors: Cai, Yu; Lin, Jin; Wan, Can; Song, Yonghua
• Is Part Of: IET renewable power generation. Volume 11:Issue 2(2017)
• Page Start: 278
• Page End: 288
• Publication Date: 2016-12-13
• Subjects: power markets -- distributed power generation -- power generation economics -- power distribution economics -- stochastic programming -- pricing -- power system security -- profitability; ADisCo -- DG -- ILs -- distributed generations -- interruptible loads -- distribution network company -- passive purchaser -- stochastic bi‐level model‐based strategic trading model -- active distribution company -- active distribution network -- electricity market -- imbalance prices -- stochastic programming -- linear ADN operation model -- ADN operation security -- upper‐level problem -- social welfare maximisation -- independent system operator -- complementarity theory -- mixed integer linear programming model -- profit maximization; Renewable energy sources -- Periodicals; 333.79405
• DOI: 10.1049/iet-rpg.2016.0364
• Languages: English
• ISSNs: 1752-1416

Abstract

Abstract : With the rapid development of distributed generations (DGs) and interruptible loads (ILs), distribution network company can actively purchase electricity in market instead of playing as a traditional passive purchaser. This study proposes a stochastic bi‐level model‐based strategic trading model for an active distribution company (ADisCo) which operates the active distribution network (ADN) to maximise its profit in electricity market. Uncertainties pertaining to bidding and offering prices of other market rivals', the imbalance prices in the balance market and the productions of DGs are considered via stochastic programming. Besides, a linear ADN operation model is proposed to ensure ADN operation security within the stochastic programming model. The proposed model is initially formulated as a stochastic bi‐level model, where the upper‐level problem represents the maximisation of the profit of ADN operator, whereas the lower‐level model represents the maximisation of the social welfare in clearing of market from the perspective of independent system operator. On the basis of the complementarity theory, the proposed model can be transformed into a mixed integer linear programming model. Case studies demonstrate the efficiency and effectiveness of the proposed strategic trading model for an ADisCo with DGs and ILs.