Two-stage Reserve Capacity Configuration Considering the Reserve Resources at Supply and Demand Side

Abstract

This paper presents a demand response involved two-stage adjustable robust optimization model to obtain the optimal reserve capacity configuration strategy. The outer stage of the presented two-stage model corresponds to the day-ahead stage, which searches for the optimal configuration strategy considering the known worst-case scenario. The inner stage represents the real-time stage, which searches for the worst-case scenario and the corresponding adjustment strategy. The objective of the two-stage model aims at minimizing the dispatch and reserve cost. Price-based demand response (PBDR) and incentive-based demand response (IBDR) are involved in the day-ahead and real-time dispatch of reserve capacity. Column and constraint generation (C&CG) algorithm, duality theory, big-M method are employed to solve the two-stage model. Case study demonstrates the effectiveness of the presented model.