Bilevel approach for optimal location and contract pricing of distributed generation in radial distribution systems using mixed‐integer linear programming

Distributed Generation (DG) units are increasingly installed in the power systems. Distribution Companies (DisCo) can opt to purchase the electricity from DG in an energy purchase contract to supply the customer demand and reduce energy loss. This paper proposes a framework for optimal contract pricing of independent dispatchable DG units considering competition among them. While DG units tend to increase their profit from the energy purchase contract, DisCo minimizes the demand supply cost. Multi-leader follower game theory concept is used to analyze the situation in which competing DG units offer the energy price to DisCo and DisCo determines the DG generation. A bi-level approach is used to formulate the competition in which each DG problem is the upper-level problem and the DisCo problem is considered as the lower-level one. Combining the optimality conditions of all upper-level problems with the lower level problem results in a multi-DG equilibrium problem formulated as an equilibrium problem with equilibrium constraints (EPEC). Using a nonlinear approach, the EPEC problem is reformulated as a single nonlinear optimization model which is simultaneously solved for all independent DG units. The proposed framework was applied to the Modified IEEE 34-Bus Distribution Test System. Performance and robustness of the proposed framework in determining econo-technically fare DG contract price has been demonstrated through a series of analyses.Keywords: Distributed Generation (DG), Distribution Company (DisCo), Pricing, Game Theory, Multileader follower, Equilibrium Problems with Equilibrium Constraints (EPEC). Active power demand at node k in period t (MW). Voltage magnitude at node k in period t (V).Dual variable related to the power balance constraint at node k in period t.

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“…The proposed model has been applied to the modified IEEE 34-Bus Distribution Test System [14], presented in Fig. 3.…”

Section: Numerical Resultsmentioning

confidence: 99%

“…DisCo can provide the electricity from the wholesale market or through bilateral contracts with DG units. A market structure similar to the ones presented in [14][15][16][17] is considered in which DisCo is to provide costumers' demand at minimum operation cost and power loss.…”

Section: Basic Assumptionsmentioning

confidence: 99%

A bi-level approach for optimal contract pricing of independent dispatchable DG units in distribution networks

Mobarakeh

Rajabi-Ghahnavieh

Haghighat

2016

Int. Trans. Electr. Energ. Syst.

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“…In [45], for the purpose of minimizing the cost of DGO and maximizing the profit of DGO, a bi-level non-liner planning model is proposed to determine sittings and sizes of DDGs in ADS. To deal with this problem, the planning model is turned into an equivalent single-level mixed-integer linear programming problem and it is solved by CPLEX.…”

Section: Solving Algorithmsmentioning

confidence: 99%

A Review of Optimal Planning Active Distribution System: Models, Methods, and Future Researches

Wang

Chen³

et al. 2017

Energies

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Due to the widespread deployment of distributed energy resources (DERs) and the liberalization of electricity market, traditional distribution networks are undergoing a transition to active distribution systems (ADSs), and the traditional deterministic planning methods have become unsuitable under the high penetration of DERs. Aiming to develop appropriate models and methodologies for the planning of ADSs, the key features of ADS planning problem are analyzed from the different perspectives, such as the allocation of DGs and ESS, coupling of operation and planning, and high-level uncertainties. Based on these analyses, this comprehensive literature review summarizes the latest research and development associated with ADS planning. The planning models and methods proposed in these research works are analyzed and categorized from different perspectives including objectives, decision variables, constraint conditions, and solving algorithms. The key theoretical issues and challenges of ADS planning are extracted and discussed. Meanwhile, emphasis is also given to the suitable suggestions to deal with these abovementioned issues based on the available literature and comparisons between them. Finally, several important research prospects are recommended for further research in ADS planning field, such as planning with multiple micro-grids (MGs), collaborative planning between ADSs and information communication system (ICS), and planning from different perspectives of multi-stakeholders.

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“…Therefore, DisCo should pay some compensation for dispatching BSS. Contract price is one of the effective compensation methods [20]. The mechanism of BSS participating in DSM is that in the market environment, BSS offers contract price of participating in DSM to DisCo and according to the system load curve and spot electricity price of the upper grid, DisCo decides how much power of BSS in each period is dispatched to minimize its operation cost.…”

Section: Mechanism Of Bss Participating In Demand Side Managementmentioning

confidence: 99%

“…(1) The optimal sizing and location of BSS are decided separately in this paper in order to reduce the complexity of the problem and difficulty of solving. (2) Both the economic profits of BSS and distribution company (DisCo) [20] are considered in the process of optimal planning of BSS and a bi-level programming model of BSS is presented realizing the decomposing of BSS optimal planning and DisCo economic dispatching. (3) Besides the planning variables containing optimal numbers of batteries and chargers initially purchased and optimal location, the operating variables, including contract price and dispatched power of BSS participating in DSM, can also be decided through the proposed model.…”

Section: Introductionmentioning

confidence: 99%

A New Method to Plan the Capacity and Location of Battery Swapping Station for Electric Vehicle Considering Demand Side Management

Liu

Niu

et al. 2016

Sustainability

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Compared to electric vehicle (EV) charging mode, battery swapping mode can realize concentrated and orderly charging. Therefore battery swapping stations (BSS) can participate in the demand side management (DSM) as an integrated form. In this context, a new method to plan the capacity and location of BSS for EV, considering DSM, is proposed in this paper. Firstly, based on the original charging power of BSS with the rule of "First-In First-Out", a bi-level optimal configuration model of BSS, in which net profit of BSS is maximized in the upper model and operating cost of Distribution Company is minimized in the lower model, is developed to decide the rated power, number of batteries, contract pricing and dispatched power of BSS for DSM. Then, the optimal locating model of BSS with the objective of minimizing network loss is built. A mesh adaptive direct search algorithm with YALMIP toolbox is applied to optimize the bi-level model. Simulation calculation was carried on IEEE-33 nodes distribution system and the results show that participating in DSM can improve the economic benefits of both BSS and distribution network and promote the consumption of distributed generation, verifying the feasibility and effectiveness of the proposed method.

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Bilevel approach for optimal location and contract pricing of distributed generation in radial distribution systems using mixed‐integer linear programming

Cited by 74 publications

References 45 publications

A bi-level approach for optimal contract pricing of independent dispatchable DG units in distribution networks

A bi-level approach for optimal contract pricing of independent dispatchable DG units in distribution networks

A Review of Optimal Planning Active Distribution System: Models, Methods, and Future Researches

A New Method to Plan the Capacity and Location of Battery Swapping Station for Electric Vehicle Considering Demand Side Management

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