Real-Time Trading Strategies of Proactive DISCO with Heterogeneous DG Owners

Abstract

This paper presents a methodology to obtain the optimal trading strategies between the proactive distribution company (PDISCO), heterogeneous distributed generation owners (DGOs), and wholesale market in a real-time trading framework. In this framework, the PDISCO's decisions cover the power procurements from DGOs and the transactions within the real-time market. A one-leader multi-follower-type bilevel model is proposed to embody the PDISCO-DGO gaming structure. The upper-level (UL) problem is to maximize the PDISCO's profit, while the lower-level (LL) problem indicates the profit maximization per DGO. Since the UL problem is non-linear and non-convex and the LL problems are linear and convex, we reformulate the proposed model to a solvable mathematical program with equilibrium constraints by an equivalent primal-dual approach. The numerical results of the case studies show the effectiveness and scalability of the proposed model.