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A multi-objective bi-level framework to model distribution system operator's behavior in the wholesale and local transactive markets

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  • Karimi, Hamid
  • Heydarian-Forushani, Ehsan

Abstract

This paper presents a multi-objective bi-level framework to model the distribution system operator's (DSO's) behavior in both wholesale and local electricity markets. The upper level is a multi-objective optimization problem from the DSO point of view including operation cost minimization, flexibility maximization, and peak load minimization. To this end, the DSO could not only participate in the wholesale electricity market at both day-ahead and real-time stages, but also is able to purchase power from renewable generations as well as the private owners. In this regards, the DSO could manage fluctuations of renewable power generations through considering flexibility as an objective function along with cost and peak-shaving. The lower level assigns to the private owner's profit maximization through interactions with the DSO. The DSO also exploits the demand response potential by implementing load shifting programs. The obtained results reveal that the proposed model could reduce the peak load by 6.05 MW and enhance the system flexibility level by 88 %.

Suggested Citation

  • Karimi, Hamid & Heydarian-Forushani, Ehsan, 2024. "A multi-objective bi-level framework to model distribution system operator's behavior in the wholesale and local transactive markets," Energy, Elsevier, vol. 312(C).
    • Handle: RePEc:eee:energy:v:312:y:2024:i:c:s036054422403473x
    DOI: 10.1016/j.energy.2024.133695
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    References listed on IDEAS

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