Impact of distributed generation and interruptible load on energy supply strategies of distribution companies in day-ahead market

This paper introduces an energy supply model for a distribution company (Disco) in day-ahead electricity market. The model consists of two nested blocks, wherein, outer block maximizes Discos profits, while inner block simulates the independent system operator´s (ISO´s) market clearing problem and minimizes generation costs and compensation costs for interrupting load. In this model, Discos have distributed generation (DG) and Interruptible load (IL) resources and the model takes into account the Impact of other Discos´ energy supply strategy. In order to consider the effect of DG and IL on Discos´ energy supply strategies, the proposed model applied to an eight-bus system.