Distribution Market-Clearing and Pricing Considering Coordination of DSOs and ISO: An EPEC Approach

Chen, Houhe; Fu, Linbo; Bai, Linquan; Jiang, Tao; Xue, Yaosuo; Zhang, Rufeng; Chowdhury, Badrul; Stekli, Joseph; Li, Xue

doi:10.1109/tsg.2021.3061282

Title: Distribution Market-Clearing and Pricing Considering Coordination of DSOs and ISO: An EPEC Approach

Journal Article · Mon Feb 22 00:00:00 EST 2021 · IEEE Transactions on Smart Grid

DOI:https://doi.org/10.1109/tsg.2021.3061282· OSTI ID:1769226

Chen, Houhe ^[1]; Fu, Linbo ^[1]; Bai, Linquan ^[2]; Jiang, Tao ^[1];

^[3]; Zhang, Rufeng ^[1]; Chowdhury, Badrul ^[2]; Stekli, Joseph ^[2]; Li, Xue ^[1]

Northeast Electric Power Univ., Jilin, JL (China)
Univ. of North Carolina, Charlotte, NC (United States)
Oak Ridge National Lab. (ORNL), Oak Ridge, TN (United States)

Distribution-level electricity market provides a platform for trading energy and grid services from large-amount of small-scale distributed energy resources (DERs) located on distribution grids. The behavior of the DERs in the distribution electricity market may ultimately impact the market-clearing and locational marginal prices (LMPs) in the wholesale market. This paper proposes a bi-level optimization model for distribution market clearing and distribution locational marginal pricing (DLMP) considering the interactions between distribution and transmission wholesale markets. In the proposed model, the upper-level model represents the distribution system operator (DSO) market-clearing and the lower-level model represents the wholesale market-clearing by the independent system operator (ISO). The LMP at the substation will impact the DER dispatch and power demands of the DSO as well as the DLMP. In turn, the power demands of the DSO will further impact the ISO market and its LMPs. The equilibrium problem with equilibrium constraints (EPEC) approach is applied to find the equilibria of multiple DSOs and the ISO. The EPEC problem is transformed into a single-level mixed-integer convex problem in order to allow for efficient solving. Finally, the effectiveness of the proposed model and solution method are demonstrated through case studies.

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Research Organization:: Oak Ridge National Lab. (ORNL), Oak Ridge, TN (United States)

Sponsoring Organization:: USDOE Office of Electricity (OE); National Natural Science Foundation of China (NSFC)

Grant/Contract Number:: AC05-00OR22725; 52077028; 52007026; 51877033; 52061635103

OSTI ID:: 1769226

Journal Information:: IEEE Transactions on Smart Grid, Vol. 12, Issue 4; ISSN 1949-3053

Publisher:: IEEECopyright Statement

Country of Publication:: United States

Language:: English

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