A Risk-Based Decision Framework for the Distribution Company in Mutual Interaction With the Wholesale Day-Ahead Market and Microgrids

• Type: Article in International Scientific Journal
• Date: 2020

Authors

Bahramara, S (Author) Other; Sheikhahmadi, P (Author) Other; Mazza, A (Author) Other; Chicco, G (Author) Other; Shafie Khah, M (Author) Other; Catalao, JPS (Author) FEUP

Journal

Title: IEEE Transactions on Industrial Informatics

Vol. 16

Pages: 764-778

ISSN: 1551-3203

Publisher: IEEE

Indexing

ISI Web of Knowledge - 38 Citations

Scopus - 46 Citations

Other information

Authenticus ID: P-00R-KG2

DOI: 10.1109/tii.2019.2921790

Abstract (EN): One of the emergent prospects for active distribution networks (DN) is to establish new roles to the distribution company (DISCO). The DISCO can act as an aggregator of the resources existing in the DN, also when parts of the network are structured and managed as microgrids (MGs). The new roles of the DISCO may open the participation of the DISCO as a player trading energy in the wholesale markets, as well as in local energy markets. In this paper, the decision making aspects involving the DISCO are addressed by proposing a bilevel optimization approach in which the DISCO problem is modeled as the upper-level problem and the MGs problems and day-ahead wholesale market clearing process are modeled as the lower-level problems. To include the uncertainty of renewable energy sources, a risk-based two-stage stochastic problem is formulated, in which the DISCO's risk aversion is modeled by using the conditional value at risk. The resulting nonlinear bilevel model is transformed into a linear single-level one by applying the Karush-Kuhn-Tucker conditions and the duality theory. The effectiveness of the model is shown in the application to the IEEE 33-bus DN connected to the IEEE RTS 24-bus power system.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 15