Strategy-making for a proactive distribution company in the real-time market with demand response

Chunyu Zhang; Qi Wang; Jianhui Wang; Magnus Korpas; Mohammad E. Khodayar

doi:10.1016/j.apenergy.2016.08.058

Strategy-making for a proactive distribution company in the real-time market with demand response

Chunyu Zhang, Qi Wang, Jianhui Wang, Magnus Korpas, Mohammad E. Khodayar

Research output: Contribution to journal › Journal article › Research › peer-review

Abstract

This paper proposes a methodology to optimize the trading strategies of a proactive distribution company (PDISCO) in the real-time market by mobilizing the demand response. Each distribution-level demand is considered as an elastic one. To capture the interrelation between the PDISCO and the real-time market, a bi-level model is presented for the PDISCO to render continuous offers and bids strategically. The upper level problem expresses the PDISCO's profit maximization, while the lower-level problem minimizes the operation cost of the transmission-level real-time market. To solve the proposed model, a primal-dual approach is used to translate this bi-level model into a single-level mathematical program with equilibrium constraints. Results of case studies are reported to show the effectiveness of the proposed model. (C) 2016 Elsevier Ltd. All rights reserved.

Original language	English
Journal	Applied Energy
Volume	181
Pages (from-to)	540-548
ISSN	0306-2619
DOIs	https://doi.org/10.1016/j.apenergy.2016.08.058
Publication status	Published - 2016

Keywords

Demand response (DR)
Proactive distribution company (PDISCO)
Multi-period AC power flow
Mathematical program with equilibrium constraints (MPEC)
Mathematical program with primal and dual constraints (MPPDC)

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title = "Strategy-making for a proactive distribution company in the real-time market with demand response",

abstract = "This paper proposes a methodology to optimize the trading strategies of a proactive distribution company (PDISCO) in the real-time market by mobilizing the demand response. Each distribution-level demand is considered as an elastic one. To capture the interrelation between the PDISCO and the real-time market, a bi-level model is presented for the PDISCO to render continuous offers and bids strategically. The upper level problem expresses the PDISCO's profit maximization, while the lower-level problem minimizes the operation cost of the transmission-level real-time market. To solve the proposed model, a primal-dual approach is used to translate this bi-level model into a single-level mathematical program with equilibrium constraints. Results of case studies are reported to show the effectiveness of the proposed model. (C) 2016 Elsevier Ltd. All rights reserved.",

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year = "2016",

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language = "English",

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journal = "Applied Energy",

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T1 - Strategy-making for a proactive distribution company in the real-time market with demand response

AU - Zhang, Chunyu

AU - Wang, Qi

AU - Wang, Jianhui

AU - Korpas, Magnus

AU - Khodayar, Mohammad E.

PY - 2016

Y1 - 2016

N2 - This paper proposes a methodology to optimize the trading strategies of a proactive distribution company (PDISCO) in the real-time market by mobilizing the demand response. Each distribution-level demand is considered as an elastic one. To capture the interrelation between the PDISCO and the real-time market, a bi-level model is presented for the PDISCO to render continuous offers and bids strategically. The upper level problem expresses the PDISCO's profit maximization, while the lower-level problem minimizes the operation cost of the transmission-level real-time market. To solve the proposed model, a primal-dual approach is used to translate this bi-level model into a single-level mathematical program with equilibrium constraints. Results of case studies are reported to show the effectiveness of the proposed model. (C) 2016 Elsevier Ltd. All rights reserved.

AB - This paper proposes a methodology to optimize the trading strategies of a proactive distribution company (PDISCO) in the real-time market by mobilizing the demand response. Each distribution-level demand is considered as an elastic one. To capture the interrelation between the PDISCO and the real-time market, a bi-level model is presented for the PDISCO to render continuous offers and bids strategically. The upper level problem expresses the PDISCO's profit maximization, while the lower-level problem minimizes the operation cost of the transmission-level real-time market. To solve the proposed model, a primal-dual approach is used to translate this bi-level model into a single-level mathematical program with equilibrium constraints. Results of case studies are reported to show the effectiveness of the proposed model. (C) 2016 Elsevier Ltd. All rights reserved.

KW - Demand response (DR)

KW - Proactive distribution company (PDISCO)

KW - Multi-period AC power flow

KW - Mathematical program with equilibrium constraints (MPEC)

KW - Mathematical program with primal and dual constraints (MPPDC)

U2 - 10.1016/j.apenergy.2016.08.058

DO - 10.1016/j.apenergy.2016.08.058

M3 - Journal article

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VL - 181

SP - 540

EP - 548

JO - Applied Energy

JF - Applied Energy

ER -

Strategy-making for a proactive distribution company in the real-time market with demand response

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Keywords

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