6 - ADMM-based market clearing and optimal flexibility bidding of distribution-level flexibility market for day-ahead congestion management of distribution networks

Abstract

Chapter 6 proposes an alternating direction method of multiplier (ADMM)-based market clearing strategy for the distribution-level flexibility market and an optimal flexibility bidding strategy for aggregators. First, an optimal flexibility bidding model for aggregators is formulated, which carefully models the energy payback condition and enables the aggregator to receive the maximum revenue with flexibility costs considered. Then, the market clearing model is formulated and solved by the ADMM algorithm, which allows the market operator to communicate with the distribution system operator to clear the market such that the market clearing solution respects network operation constraints without revealing network parameters to the market operator. Case studies validated that the proposed distribution-level flexibility market framework is effective to perform day-ahead congestion management of distribution networks and is profitable to aggregators and end users.