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 journalJournal articleResearchpeer-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 languageEnglish
JournalApplied Energy
Volume181
Pages (from-to)540-548
ISSN0306-2619
DOIs
Publication statusPublished - 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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