Modeling interaction between distribution company and networked microgrids in optimal operation of active distribution network

Abstract

In this paper, the interaction between energy sellers and buyers in utilizing active distribution networks is modeled with considering two networked and non-networked modes of microgrids (MGs). A retail electricity market is modeled as a bi-level problem. Accordingly, the Distribution Company (DISCO) in the upper level in order to maximize the profit offers an optimal price to MGs. While in the lower level, the MGs to compare the offered prices by DISCO with the prices of MGs generation sources for minimizing the total costs decided to whether to buy from the DISCO or not. As the first contribution of the paper is to consider the networked operation of the MGs under a unique beneficiary of MGs (BMG). As the second contribution, two very important indices reserve and self-adequacy are considered, which are necessary in the problems related to MGs. In this paper, the impact of considering and disregarding two important reserve and self-adequacy indices of MGs on the profit of the DISCO in two different scenarios is investigated. In each scenario, the impact of considering two modes networked and non-networked of MGs on the profit of DISCO is investigated. Simulation results show the efficiency the presented model.