Title :
A Bilevel Approach to Operational Decision Making of a Distribution Company in Competitive Environments
Author :
Haghighat, Hossein ; Kennedy, Scott W.
Author_Institution :
Dept. of Electr. Eng., Univ. of Jahrom, Jahrom, Iran
Abstract :
This paper presents a model for operational decision making of a distribution company (disco) with distributed generation (DG) and interruptible loads (IL) in a competitive market. The disco objective, modeled through the upper-level problem, is to minimize the cost of market purchases and DG unit dispatch while taking into account the responses of the other discos. This upper-level problem is constrained by a lower-level market clearing problem whose objective corresponds to maximization of social welfare. Such a setting results in a multi-disco equilibrium problem formulated as an equilibrium problem with equilibrium constraints (EPEC) by combining the optimality conditions of all upper-level problems. Using a nonlinear approach, the EPEC problem is reformulated as a single nonlinear optimization model which is simultaneously solved for all discos. The proposed approach is applied to an ac model of a power system to account for voltage and reactive power constraints of the transmission and distribution networks. Numerical examples based on two test systems are presented to illustrate the application of the proposed method.
Keywords :
decision making; distributed power generation; nonlinear programming; power distribution economics; purchasing; reactive power; DG unit dispatch; EPEC problem; bilevel approach; competitive environments; competitive market; disco objective; distributed generation; distribution company; distribution networks; equilibrium problem with equilibrium constraints; interruptible loads; market purchases cost; multidisco equilibrium problem; nonlinear approach; operational decision making; operational decision making model; power system model; reactive power constraints; single nonlinear optimization model; social welfare maximization; transmission networks; upper-level problems; voltage constraints; Cost function; Decision making; Distributed power generation; Load modeling; Power system economics; Reactive power; Distributed generation (DG); equilibrium problem with equilibrium constraints (EPEC); interruptible load (IL);
Journal_Title :
Power Systems, IEEE Transactions on
DOI :
10.1109/TPWRS.2011.2182214