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Network-aware energy management for microgrids in distribution market: A leader-followers approach

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  • Zhang, Rufeng
  • Li, Xue
  • Fu, Linbo
  • Jiang, Tao
  • Li, Guoqing
  • Chen, Houhe

Abstract

With the increasing penetration of distributed energy resources (DERs) into distribution systems, microgrids can participate in the market clearing of distribution-level electricity market. This paper proposes a leader-followers-type bi-level model for energy management and market clearing of distribution system with microgrids based on Stackelberg game. Distribution system operator (DSO) is considered as the leader, and microgrid operators (MOs) as followers. In the proposed model, market clearing problem of distribution system is modeled in the upper level, while the energy management problem of microgrids is modeled in the lower level. The distribution locational marginal price (DLMP) is obtained in the upper level model and then transmitted to the lower level model as price signals for microgrids. The model is then reformulated as a Mathematical Program with Equilibrium Constraints (MPEC) problem and the stochastic MPEC model is constructed with the uncertainty of PVs in microgrids. Existence of equilibrium of the proposed single leader multi-follower game is analyzed. Numerical results demonstrate the effectiveness of the proposed model.

Suggested Citation

  • Zhang, Rufeng & Li, Xue & Fu, Linbo & Jiang, Tao & Li, Guoqing & Chen, Houhe, 2023. "Network-aware energy management for microgrids in distribution market: A leader-followers approach," Applied Energy, Elsevier, vol. 332(C).
    • Handle: RePEc:eee:appene:v:332:y:2023:i:c:s0306261922017792
    DOI: 10.1016/j.apenergy.2022.120522
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    References listed on IDEAS

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    1. 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).
    2. Lv, Tianguang & Ai, Qian, 2016. "Interactive energy management of networked microgrids-based active distribution system considering large-scale integration of renewable energy resources," Applied Energy, Elsevier, vol. 163(C), pages 408-422.
    3. MansourLakouraj, Mohammad & Shahabi, Majid & Shafie-khah, Miadreza & Catalão, João P.S., 2022. "Optimal market-based operation of microgrid with the integration of wind turbines, energy storage system and demand response resources," Energy, Elsevier, vol. 239(PB).
    4. Ullah, Md Habib & Park, Jae-Do, 2022. "DLMP integrated P2P2G energy trading in distribution-level grid-interactive transactive energy systems," Applied Energy, Elsevier, vol. 312(C).
    5. Anthony Papavasiliou, 2018. "Analysis of distribution locational marginal prices," LIDAM Reprints CORE 3045, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    6. Zhang, Chenghua & Wu, Jianzhong & Zhou, Yue & Cheng, Meng & Long, Chao, 2018. "Peer-to-Peer energy trading in a Microgrid," Applied Energy, Elsevier, vol. 220(C), pages 1-12.
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    Cited by:

    1. Kandasamy, Jeevitha & Ramachandran, Rajeswari & Veerasamy, Veerapandiyan & Irudayaraj, Andrew Xavier Raj, 2024. "Distributed leader-follower based adaptive consensus control for networked microgrids," Applied Energy, Elsevier, vol. 353(PA).
    2. Zhou, Liwei & Preindl, Matthias, 2023. "Reconfigurable hybrid micro-grid with standardized power module for high performance energy conversion," Applied Energy, Elsevier, vol. 351(C).

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