IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v308y2022ics0306261921015749.html
   My bibliography  Save this article

Optimal participation of ADN in energy and reserve markets considering TSO-DSO interface and DERs uncertainties

Author

Listed:
  • Chen, Houhe
  • Wang, Di
  • Zhang, Rufeng
  • Jiang, Tao
  • Li, Xue

Abstract

The flexibility of distribution networks continues to thrive due to the increasing installment of distributed energy resources (DERs). In addition to meeting the load demand in active distribution networks (ADNs), DERs can also provide energy and reserve for the upper-layer grid (i.e., sub-transmission network) at their connection node by participating in the energy and reserve markets. This paper proposes a novel optimal participation model of ADN in energy and reserve markets that takes into account the uncertainties of DERs and the interface of transmission system operator (TSO) and distribution system operator (DSO). The problem of DSO’s strategic behavior is formulated as a stochastic bi-level optimization model. The upper-level model indicates the market clearing of ADNs managed by the DSO and the lower-level model represents the energy and reserve market clearing of the upper-layer grid managed by the TSO. The nonlinear bi-level model is converted into a mathematical program with equilibrium constraint (MPEC) model, and then the mixed-integer second order cone programming (MISOCP) model based on Karush-Kuhn-Tucker conditions and strong duality theory. The effectiveness of the proposed model on improving the economy of ADN and the utilization rate of DERs is validated by numerical studies.

Suggested Citation

  • Chen, Houhe & Wang, Di & Zhang, Rufeng & Jiang, Tao & Li, Xue, 2022. "Optimal participation of ADN in energy and reserve markets considering TSO-DSO interface and DERs uncertainties," Applied Energy, Elsevier, vol. 308(C).
    • Handle: RePEc:eee:appene:v:308:y:2022:i:c:s0306261921015749
    DOI: 10.1016/j.apenergy.2021.118319
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261921015749
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.apenergy.2021.118319?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Zhang, Chunyu & Wang, Qi & Wang, Jianhui & Korpås, Magnus & Pinson, Pierre & Østergaard, Jacob & Khodayar, Mohammad E., 2016. "Trading strategies for distribution company with stochastic distributed energy resources," Applied Energy, Elsevier, vol. 177(C), pages 625-635.
    2. Sheikhahmadi, P. & Bahramara, S. & Moshtagh, J. & Yazdani Damavandi, M., 2018. "A risk-based approach for modeling the strategic behavior of a distribution company in wholesale energy market," Applied Energy, Elsevier, vol. 214(C), pages 24-38.
    3. Dudjak, Viktorija & Neves, Diana & Alskaif, Tarek & Khadem, Shafi & Pena-Bello, Alejandro & Saggese, Pietro & Bowler, Benjamin & Andoni, Merlinda & Bertolini, Marina & Zhou, Yue & Lormeteau, Blanche &, 2021. "Impact of local energy markets integration in power systems layer: A comprehensive review," Applied Energy, Elsevier, vol. 301(C).
    4. Yuan, Zhao & Hesamzadeh, Mohammad Reza, 2017. "Hierarchical coordination of TSO-DSO economic dispatch considering large-scale integration of distributed energy resources," Applied Energy, Elsevier, vol. 195(C), pages 600-615.
    5. Liu, Jia & Cheng, Haozhong & Zeng, Pingliang & Yao, Liangzhong & Shang, Ce & Tian, Yuan, 2018. "Decentralized stochastic optimization based planning of integrated transmission and distribution networks with distributed generation penetration," Applied Energy, Elsevier, vol. 220(C), pages 800-813.
    6. Zubo, Rana H.A. & Mokryani, Geev & Abd-Alhameed, Raed, 2018. "Optimal operation of distribution networks with high penetration of wind and solar power within a joint active and reactive distribution market environment," Applied Energy, Elsevier, vol. 220(C), pages 713-722.
    7. Mohan, Vivek & Singh, Jai Govind & Ongsakul, Weerakorn, 2015. "An efficient two stage stochastic optimal energy and reserve management in a microgrid," Applied Energy, Elsevier, vol. 160(C), pages 28-38.
    8. Zhang, Chunyu & Wang, Qi & Wang, Jianhui & Korpås, Magnus & Khodayar, Mohammad E., 2016. "Strategy-making for a proactive distribution company in the real-time market with demand response," Applied Energy, Elsevier, vol. 181(C), pages 540-548.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Vijay, Rohit & Mathuria, Parul, 2024. "Common TSO-DSO market framework with no upfront priority to utilize DER flexibility," Energy, Elsevier, vol. 299(C).
    2. Jiang, Tao & Dong, Xinru & Zhang, Rufeng & Li, Xue, 2023. "Strategic active and reactive power scheduling of integrated community energy systems in day-ahead distribution electricity market," Applied Energy, Elsevier, vol. 336(C).
    3. Li, Junkai & Ge, Shaoyun & Liu, Hong & Yu, Qi & Zhang, Shida & Wang, Chengshan & Gu, Chenghong, 2024. "An electricity and carbon trading mechanism integrated with TSO-DSO-prosumer coordination," Applied Energy, Elsevier, vol. 356(C).
    4. Jiang, Tao & Wu, Chenghao & Huang, Tao & Zhang, Rufeng & Li, Xue, 2024. "Optimal market participation of VPPs in TSO-DSO coordinated energy and flexibility markets," Applied Energy, Elsevier, vol. 360(C).
    5. Lei, Zhenxing & Liu, Mingbo & Shen, Zhijun & Lu, Wentian & Lu, Zhilin, 2023. "A data-driven Stackelberg game approach applied to analysis of strategic bidding for distributed energy resource aggregator in electricity markets," Renewable Energy, Elsevier, vol. 215(C).
    6. Seong-Hyeon Cha & Sun-Hyeok Kwak & Woong Ko, 2023. "A Robust Optimization Model of Aggregated Resources Considering Serving Ratio for Providing Reserve Power in the Joint Electricity Market," Energies, MDPI, vol. 16(20), pages 1-27, October.
    7. Zhang, Rufeng & Sun, Haihang & Li, Guoqing & Jiang, Tao & Li, Xue & Chen, Houhe & Zou, He, 2023. "Reserve provision of combined-cycle unit in joint day-ahead energy and reserve markets," Applied Energy, Elsevier, vol. 336(C).
    8. Li, Yahui & Sun, Yuanyuan & Wang, Qingyan & Sun, Kaiqi & Li, Ke-Jun & Zhang, Yan, 2023. "Probabilistic harmonic forecasting of the distribution system considering time-varying uncertainties of the distributed energy resources and electrical loads," Applied Energy, Elsevier, vol. 329(C).
    9. Zhang, Rufeng & Li, Xue & Fu, Linbo & Jiang, Tao & Li, Guoqing & Chen, Houhe, 2023. "Network-aware energy management for microgrids in distribution market: A leader-followers approach," Applied Energy, Elsevier, vol. 332(C).
    10. Tong, Ziqiang & Mansouri, Seyed Amir & Huang, Shoujun & Rezaee Jordehi, Ahmad & Tostado-Véliz, Marcos, 2023. "The role of smart communities integrated with renewable energy resources, smart homes and electric vehicles in providing ancillary services: A tri-stage optimization mechanism," Applied Energy, Elsevier, vol. 351(C).
    11. Mansouri, Seyed Amir & Nematbakhsh, Emad & Jordehi, Ahmad Rezaee & Marzband, Mousa & Tostado-Véliz, Marcos & Jurado, Francisco, 2023. "An interval-based nested optimization framework for deriving flexibility from smart buildings and electric vehicle fleets in the TSO-DSO coordination," Applied Energy, Elsevier, vol. 341(C).
    12. Nie, Yonghui & Qiu, Yu & Yang, Annan & Zhao, Yan, 2024. "Risk-limiting dispatching strategy considering demand response in multi-energy microgrids," Applied Energy, Elsevier, vol. 353(PA).
    13. Shao, Zhen & Yang, Yudie & Zheng, Qingru & Zhou, Kaile & Liu, Chen & Yang, Shanlin, 2022. "A pattern classification methodology for interval forecasts of short-term electricity prices based on hybrid deep neural networks: A comparative analysis," Applied Energy, Elsevier, vol. 327(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jiang, Tao & Wu, Chenghao & Zhang, Rufeng & Li, Xue & Li, Fangxing, 2022. "Risk-averse TSO-DSOs coordinated distributed dispatching considering renewable energy and demand response uncertainties," Applied Energy, Elsevier, vol. 327(C).
    2. Shahmohammadi, Ali & Sioshansi, Ramteen & Conejo, Antonio J. & Afsharnia, Saeed, 2018. "Market equilibria and interactions between strategic generation, wind, and storage," Applied Energy, Elsevier, vol. 220(C), pages 876-892.
    3. Sheikhahmadi, P. & Bahramara, S. & Moshtagh, J. & Yazdani Damavandi, M., 2018. "A risk-based approach for modeling the strategic behavior of a distribution company in wholesale energy market," Applied Energy, Elsevier, vol. 214(C), pages 24-38.
    4. Talal Alazemi & Mohamed Darwish & Mohammed Radi, 2022. "TSO/DSO Coordination for RES Integration: A Systematic Literature Review," Energies, MDPI, vol. 15(19), pages 1-26, October.
    5. Lei, Zhenxing & Liu, Mingbo & Shen, Zhijun & Lu, Wentian & Lu, Zhilin, 2023. "A data-driven Stackelberg game approach applied to analysis of strategic bidding for distributed energy resource aggregator in electricity markets," Renewable Energy, Elsevier, vol. 215(C).
    6. Matija Kostelac & Lin Herenčić & Tomislav Capuder, 2022. "Planning and Operational Aspects of Individual and Clustered Multi-Energy Microgrid Options," Energies, MDPI, vol. 15(4), pages 1-17, February.
    7. Jiang, Tao & Wu, Chenghao & Huang, Tao & Zhang, Rufeng & Li, Xue, 2024. "Optimal market participation of VPPs in TSO-DSO coordinated energy and flexibility markets," Applied Energy, Elsevier, vol. 360(C).
    8. Fabio Massaro & Maria Luisa Di Silvestre & Marco Ferraro & Francesco Montana & Eleonora Riva Sanseverino & Salvatore Ruffino, 2024. "Energy Hub Model for the Massive Adoption of Hydrogen in Power Systems," Energies, MDPI, vol. 17(17), pages 1-31, September.
    9. Jin, Hongyang & Li, Zhengshuo & Sun, Hongbin & Guo, Qinglai & Chen, Runze & Wang, Bin, 2017. "A robust aggregate model and the two-stage solution method to incorporate energy intensive enterprises in power system unit commitment," Applied Energy, Elsevier, vol. 206(C), pages 1364-1378.
    10. Xu, Jiuping & Wang, Fengjuan & Lv, Chengwei & Huang, Qian & Xie, Heping, 2018. "Economic-environmental equilibrium based optimal scheduling strategy towards wind-solar-thermal power generation system under limited resources," Applied Energy, Elsevier, vol. 231(C), pages 355-371.
    11. Morshed, Mohammad Javad & Hmida, Jalel Ben & Fekih, Afef, 2018. "A probabilistic multi-objective approach for power flow optimization in hybrid wind-PV-PEV systems," Applied Energy, Elsevier, vol. 211(C), pages 1136-1149.
    12. Skolfield, J. Kyle & Escobedo, Adolfo R., 2022. "Operations research in optimal power flow: A guide to recent and emerging methodologies and applications," European Journal of Operational Research, Elsevier, vol. 300(2), pages 387-404.
    13. Habiba Drias & Lydia Sonia Bendimerad & Yassine Drias, 2022. "A Three-Phase Artificial Orcas Algorithm for Continuous and Discrete Problems," International Journal of Applied Metaheuristic Computing (IJAMC), IGI Global, vol. 13(1), pages 1-20, January.
    14. Pearson, Simon & Wellnitz, Sonja & Crespo del Granado, Pedro & Hashemipour, Naser, 2022. "The value of TSO-DSO coordination in re-dispatch with flexible decentralized energy sources: Insights for Germany in 2030," Applied Energy, Elsevier, vol. 326(C).
    15. Ajla Mehinovic & Matej Zajc & Nermin Suljanovic, 2023. "Interpretation and Quantification of the Flexibility Sources Location on the Flexibility Service in the Distribution Grid," Energies, MDPI, vol. 16(2), pages 1-18, January.
    16. Thomas Pownall & Iain Soutar & Catherine Mitchell, 2021. "Re-Designing GB’s Electricity Market Design: A Conceptual Framework Which Recognises the Value of Distributed Energy Resources," Energies, MDPI, vol. 14(4), pages 1-26, February.
    17. Li, Jianwei & Xiong, Rui & Mu, Hao & Cornélusse, Bertrand & Vanderbemden, Philippe & Ernst, Damien & Yuan, Weijia, 2018. "Design and real-time test of a hybrid energy storage system in the microgrid with the benefit of improving the battery lifetime," Applied Energy, Elsevier, vol. 218(C), pages 470-478.
    18. Liu, Jia & Zeng, Peter Pingliang & Xing, Hao & Li, Yalou & Wu, Qiuwei, 2020. "Hierarchical duality-based planning of transmission networks coordinating active distribution network operation," Energy, Elsevier, vol. 213(C).
    19. Hadush, Samson Yemane & Meeus, Leonardo, 2018. "DSO-TSO cooperation issues and solutions for distribution grid congestion management," Energy Policy, Elsevier, vol. 120(C), pages 610-621.
    20. Oprea, Simona-Vasilica & Bâra, Adela, 2024. "Generative literature analysis on the rise of prosumers and their influence on the sustainable energy transition," Utilities Policy, Elsevier, vol. 90(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:appene:v:308:y:2022:i:c:s0306261921015749. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.