Abstract
To cope with wind power uncertainty, balancing authorities are required to procure adequate ancillary services (ASs) with the aim of maintaining the security of the power system operation. The transmission system operator (TSO) is responsible for maintaining the balance between supply and demand in delivery hours. Besides the generating units, demand response (DR) has the potential capabilities to be considered as a source of AS. The demand‐side AS can be used both locally (by the local entities in distribution networks) and system‐wide (by the TSO). However, the optimal coordination between the local and global beneficiaries is a challenging task. This study proposes a distributed DR market model, in which the DR is traded as a public good among the providers and beneficiaries through the local DR markets. The local DR markets can be run in each load bus to trade the DR provided by retail customers connected to that bus with the buyers. To include the interactions between the energy/reserve market and the local DR markets, a bi‐level programming model is proposed. The bi‐level problem is translated into a single‐level mixed‐integer linear programming problem using the duality theorem. The proposed model is verified by simple and realistic case studies.
Highlights
1.1 MotivationDue to environmental and economic factors, the penetration level of wind power in the electricity generation sector is increasing worldwide
Limited to PDjldRt, max and PDjldRt, min as the upper and lower bounds, respectively demand response (DR) demand scheduled for buyer b from customer group g at bus j in period t [MW] DR supply deployed from the kth block of DR offered by customer d of DR providers (DRPs) l located at bus j in period t and scenario w [MW]
The local DR markets are run in load buses to face local DR buyers with retail DR providers
Summary
PiSt scheduled power of unit i in period t [MW]. Limited to Pimax and Pimin as the upper and lower bounds, respectively. PtWP scheduled wind power in period t [MW]. Limited to PtWP, max and PtWP, min as the upper and lower bounds, respectively. Ritw deployed reserve of unit i in period t and scenario w r jtw deployed DR reserve of load j in period t and scenario w ljtw power consumption of load j in period t and scenario w lsjthw load shedding at bus j in period t and scenario w [MW]. F tw(n, r) uit vitw power flow through line (n, r) in period t and scenario w [MW]. 0/1 variable that is equal to 1 if unit i is scheduled to be committed in period t 0/1 variable that is equal to 1 if unit i is scheduled to be committed in period t and scenario w
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