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Trading strategies for distribution company with stochastic distributed energy resources
- Zhang, Chunyu, Wang, Qi, Wang, Jianhui, Korpås, Magnus, Pinson, Pierre, Østergaard, Jacob, Khodayar, Mohammad E.
- Applied energy 2016 v.177 pp. 625-635
- case studies, energy resources, markets, models, social welfare
- 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.