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Trading strategies for distribution company with stochastic distributed energy resources

Author

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

Abstract

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 profit across these markets. The PDISCO’s strategic offers/bids interactively influence 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 verified by case studies.

Suggested Citation

  • Zhang, Chunyu & Wang, Qi & Wang, Jianhui & Korpås, Magnus & Pinson, Pierre & Østergaard, Jacob & Khodayar, Mohammad E., 2016. "Trading strategies for distribution company with stochastic distributed energy resources," Applied Energy, Elsevier, vol. 177(C), pages 625-635.
    • Handle: RePEc:eee:appene:v:177:y:2016:i:c:p:625-635
    DOI: 10.1016/j.apenergy.2016.05.143
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    References listed on IDEAS

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    2. Ma, Mingtao & Huang, Huijun & Song, Xiaoling & Peña-Mora, Feniosky & Zhang, Zhe & Chen, Jie, 2022. "Optimal sizing and operations of shared energy storage systems in distribution networks: A bi-level programming approach," Applied Energy, Elsevier, vol. 307(C).
    3. Shahmohammadi, Ali & Sioshansi, Ramteen & Conejo, Antonio J. & Afsharnia, Saeed, 2018. "Market equilibria and interactions between strategic generation, wind, and storage," Applied Energy, Elsevier, vol. 220(C), pages 876-892.
    4. Lei, Zhenxing & Liu, Mingbo & Shen, Zhijun & Lu, Wentian & Lu, Zhilin, 2023. "A data-driven Stackelberg game approach applied to analysis of strategic bidding for distributed energy resource aggregator in electricity markets," Renewable Energy, Elsevier, vol. 215(C).
    5. Chen, Houhe & Wang, Di & Zhang, Rufeng & Jiang, Tao & Li, Xue, 2022. "Optimal participation of ADN in energy and reserve markets considering TSO-DSO interface and DERs uncertainties," Applied Energy, Elsevier, vol. 308(C).
    6. Gro Klæboe & Jørgen Braathen & Anders Lund Eriksrud & Stein-Erik Fleten, 2022. "Day-ahead market bidding taking the balancing power market into account," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 30(3), pages 683-703, October.
    7. Xiao, Yunpeng & Wang, Xifan & Wang, Xiuli & Wu, Zechen, 2016. "Trading wind power with barrier option," Applied Energy, Elsevier, vol. 182(C), pages 232-242.
    8. Huang, Yi & Gordon, Dan & Scott, Paul, 2023. "Receding horizon dispatch of multi-period look-ahead market for energy storage integration," Applied Energy, Elsevier, vol. 352(C).
    9. Chen, Kaixuan & Lin, Jin & Song, Yonghua, 2019. "Trading strategy optimization for a prosumer in continuous double auction-based peer-to-peer market: A prediction-integration model," Applied Energy, Elsevier, vol. 242(C), pages 1121-1133.
    10. Zhang, Chunyu & Wang, Qi & Wang, Jianhui & Korpås, Magnus & Khodayar, Mohammad E., 2016. "Strategy-making for a proactive distribution company in the real-time market with demand response," Applied Energy, Elsevier, vol. 181(C), pages 540-548.
    11. Sheikhahmadi, P. & Bahramara, S. & Moshtagh, J. & Yazdani Damavandi, M., 2018. "A risk-based approach for modeling the strategic behavior of a distribution company in wholesale energy market," Applied Energy, Elsevier, vol. 214(C), pages 24-38.
    12. Li, Bei & Roche, Robin & Paire, Damien & Miraoui, Abdellatif, 2019. "A price decision approach for multiple multi-energy-supply microgrids considering demand response," Energy, Elsevier, vol. 167(C), pages 117-135.

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