Optimal Market Participation of Distributed Load Resources Under Distribution Network Operational Limits and Renewable Generation Uncertainties

Abstract

Distributed load resources are encouraged nowadays to actively participate in the energy market. As a part of the distribution system, they affect the power flow pattern of the network and interact with intermittent renewable generation in the distribution system. In this regard, one fundamental challenge, not yet addressed, is to derive an optimal market participation model, under the demand bidding paradigm, that systemically accounts for the operational limits of a physical distribution grid considering uncertainty associated with both the electricity market , and distribution network system . Accordingly, this paper addresses the optimal demand biding under uncertain market and distribution system data and network operational limits. Assuming a price-taker distribution utility with renewable energy, inflexible and deferrable loads and a two-settlement market model, we develop a two-stage robust stochastic bidding formulation solved using a decomposition algorithm. We derive optimal bid curves that minimize energy procurement cost and fully comply with the operational standards of the distribution network. Moreover, novel indexes are proposed to help the utility evaluate the operational performance of its network with regard to deferrable loads and renewable resources. Finally, we illustrate the advantage of the proposed model from a set of numerical experiments on an example system and the 33-bus system.