A bi-level trading model for an active distribution company considering demand response exchange

摘要

With widely utilization of distributed generations (DGs) and demand response (DR), the active distribution network (ADN) becomes a more proactive and strategic consumer in electricity markets to procure its energy needs at the minimum cost. Under this background, this paper proposes a bi-level trading model for a strategic ADN to minimize its operation cost in the day-ahead market. The upper level model represents the cost minimization of the ADN energy acquisition with consideration of DR, and the lower level model includes the day-ahead market clearing. Based on the complementarity theory and linearization techniques, the proposed bi-level model can be transformed into a mixed integer linear programming (MILP) problem. Comprehensive case studies demonstrate the efficiency and effectiveness of the proposed strategic trading model for an ADisCo with DGs and DR with respect to nonstrategic bidding approaches.