Stochastic Strategic Participation of Active Distribution Networks With High-Penetration DERs in Wholesale Electricity Markets

Abhijith Ravi, Linquan Bai, Valentina Cecchi, Fei Ding

Research output: Contribution to journalArticlepeer-review

16 Scopus Citations

Abstract

With the increasing penetration of distributed energy resources (DERs), traditional distribution networks as load-serving entities in wholesale electricity markets, now evolve towards active distribution networks (ADNs) which can proactively participate in wholesale markets by optimally controlling the DERs in their networks. A stochastic bilevel optimization model is proposed in this paper for the strategic participation of ADNs and DERs to provide energy and grid services in wholesale electricity markets. The bilevel optimization model can capture the interactions between the ADN and the wholesale energy and ancillary service markets, considering the uncertainties of DERs in the ADN. In the upper-level model, the ADN makes optimal decisions on energy and reserve bidding considering the availability, uncertainties, and flexibility of DERs. The joint energy and reserve market-clearing of the independent system operator (ISO) is modeled as the lower-level problem. Using strong duality theory and Karush-Kuhn Tucker (KKT) conditions, the proposed bilevel optimization problem is reformulated as mathematical programming with equilibrium constraints (MPEC) problem and further converted into a computationally-solvable mixed-integer second-order-cone programming (MISOCP) model. The simulation results demonstrate the effectiveness of the model and the interactions between an ADN and wholesale electricity markets.

Original languageAmerican English
Pages (from-to)1515-1527
Number of pages13
JournalIEEE Transactions on Smart Grid
Volume14
Issue number2
DOIs
StatePublished - 2023

Bibliographical note

Publisher Copyright:
© 2010-2012 IEEE.

NREL Publication Number

  • NREL/JA-5D00-86612

Keywords

  • Active distribution network
  • bilevel optimization
  • distributed energy resources
  • mathematical program with equilibrium constraints
  • strategic bidding
  • wholesale markets

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