Trading Strategies for Distribution Company with Stochastic Distributed Energy Resources.

Chunyu Zhang, Qi Wang, Jianhui Wang, Magnus Korpås, Pierre Pinson, Jacob Østergaard, Mohammad E. Khodayar

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    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 prot across these markets. The PDISCO's strategic oers/bids interactively in uence 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 veried by case studies.
    Original languageEnglish
    JournalApplied Energy
    Pages (from-to)625-635
    Publication statusPublished - 2016


    • Distributed energy resources (DERs)
    • Proactive distribution company (PDISCO)
    • Electricity markets
    • Bilevel game-theoretic model


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