A bi-level optimization model for operation of distribution networks with micro-grids |
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| Affiliation: | 1. Center of Excellence for Power System Automation and Operation, Dept. of Electrical Engineering, Iran University of Science and Technology, P.O. Box: 1684613114, Tehran, Iran;2. Department of Electrical Engineering, University of Science and Technology of Mazandaran, P.O. Box: 48518-78195, Behshahr, Iran;1. Department of Industrial Engineering, Sanandaj Branch, Islamic Azad University, Sanandaj, Iran;2. Department of Industrial Engineering, Science and Research Branch, Islamic Azad University, Tehran, Iran;3. Department of Industrial Management, Management and Accounting, Shahid Beheshti University, Tehran, Iran;4. Department of Statistics and Actuarial Science, University of Waterloo, Ontario, Canada;1. North China Electric Power University, Beijing 102206, China;2. Departamento de Matemática, Universidade Federal do Paraná, Centro Politécnico, CP: 19081, 81531-980 Curitiba, Brazil;1. Institute for Environmental Sciences, University of Geneva, Switzerland;2. School of Electrical Engineering and Computer Science, KTH Royal Institute of Technology, Sweden;1. Faculty of Electrical Engineering, Shahid Rajaee Teacher Training University, Tehran, Iran;2. School of Technology and Innovations, University of Vaasa, 65200 Vaasa, Finland;3. Faculty of Engineering of the University of Porto and INESC TEC, Porto 4200-465, Portugal |
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| Abstract: | Active distribution grids (ADGs) consist of several distributed generations (DGs) and controllable loads (CLs). These resources are utilized in the form of several microgrids (MGs) which in turn facilitate managing of ADGs. Therefore, the problem of distribution company (DISCO) and MGs operation requires a hierarchical decision-making framework. An attempt is made in this paper to model such framework as a bi-level optimization problem. In the proposed bi-level model, the objective of the upper level (leader) problem is to maximize the profit of DISCO, and the objective of the lower level (follower) problems is to minimize the cost of MGs. The resulting model is a nonlinear bi-level problem which is transformed into a linear single-level problem through Karush–Kuhn–Tucker (KKT) conditions and dual theory. Since the proposed model creates a retail electricity market in distribution grid, two frameworks are considered for this market: various and uniform retail electricity prices. To illustrate the effectiveness of the model, a hypothetical distribution grid is considered as the case study. The impacts of the market price and various demand levels of MGs on the results are investigated in two scenarios. |
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| Keywords: | Active distribution grids Bi-level optimization problem Microgrids Karush–Kahn–Tucker conditions Dual theory |
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