Local energy market clearing of integrated ADN and district heating network coordinated with transmission system

Abstract

With the increasing interconnection of active distribution network (ADN) with the integration of distributed generations (DGs) and district heating network (DHN), local electricity-heat integrated energy market provides the opportunity of coordinated energy pricing and trading with transmission system operator (TSO). The market clearing results of distribution system operator (DSO) on local electricity and heating markets will be affected wholesale market clearing. This paper proposes a bi-level optimization model for local electricity-heat integrated energy market clearing for integrated ADN and DHN, and distribution locational marginal pricing coordinated with the wholesale market clearing of transmission system. In the proposed model, the upper-level model indicates the local electricity-heat integrated market clearing by DSO and the lower-level model indicates the wholesale electricity market clearing by TSO. The locational marginal price (LMP) of the substation of the PCC point will affect the market clearing of ADN and DHN, and further affect the distribution locational marginal price (DLMP). Moreover, the market clearing actions of DSO would affect the wholesale electricity market clearing and LMP. The equilibrium of DSO and TSO is found by transforming the proposed bi-level model into a mathematical program with equilibrium constraint (MPEC) model. The MPEC formulation is further converted into mixed integer second order cone programming (MISOCP) for effectively solving. The effectiveness of the proposed model on reducing the DLMP and improving economy of ADN and DHN are demonstrated through case studies.