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A DSO-based day-ahead market mechanism for optimal operational planning of active distribution network

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  • Suryakiran, B.V.
  • Nizami, Sohrab
  • Verma, Ashu
  • Saha, Tapan Kumar
  • Mishra, Sukumar

Abstract

Grid-edge distributed energy resources (DERs) present both operational challenges and opportunities to distribution system operators (DSO). This paper presents a day-ahead scheduling strategy for DER-rich active distribution networks to leverage operational flexibilities of various DERs for effective network management. The scheduling strategy is realized based on a DSO-centric day-ahead market model that incorporates a multi-period and two-stage optimal power flow (OPF) model to determine scheduling and pricing for network and non-network DERs. The uncertainties in day-ahead operation stemming from local generation, load consumption, and market prices are robustly considered for hedging the intermittency and forecasting uncertainties. A novel bid price function is proposed for local distributed solar PV generation aiming at maximizing participation in network service. A new reactive power management and pricing scheme is also presented for optimal scheduling of voltage support devices within distribution network. The proposed framework is implemented on IEEE-33 bus balanced test system and operational planning strategy is analyzed for overall cost-benefits of the system at various uncertainty levels. A 7-10 percent saving in cost of procurement for DSO can be accrued at various uncertainty levels, and a 10 percent increase in revenue for the PV generation can be observed.

Suggested Citation

  • Suryakiran, B.V. & Nizami, Sohrab & Verma, Ashu & Saha, Tapan Kumar & Mishra, Sukumar, 2023. "A DSO-based day-ahead market mechanism for optimal operational planning of active distribution network," Energy, Elsevier, vol. 282(C).
    • Handle: RePEc:eee:energy:v:282:y:2023:i:c:s036054422302296x
    DOI: 10.1016/j.energy.2023.128902
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