Considering Energy Storage System Energy Management in Microgrid

It is necessary and profitable to bring competition to suppliers in power market. Obtaining the maximum profit is power supplier´s aim in power market. This article uses the bi-level optimization model to solve this problem. In the upper level, we consider the interests of the public grid and the goal is to maximum the interests of the public grid. The objective of the lower-level is to maximum the interests of the Energy Services Provider(ESP). When computing, the smoothing function method issued to make the optimization model of the lower-level have a continuous features. To obtain the global optimal solution, the resulting nonlinear bi-level programming formulation is transformed into an equivalent single-level program by its Karush -- Kuhn -- Tucker optimality conditions. Finally, a numerical example is conducted to demonstrate the performance of the proposed model and algorithm.