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Abstract:
With the increasing penetration of distributed energy resources or loads managed by aggregators in a distribution network, a critical discrepancy emerges between bidding power and actual delivered power when grid constraints are ignored. This will bring deviation penalties and affect the safe and stable operation of a distribution system. To bridge this gap, this study proposes a bi-level bidding framework for aggregators that integrates distribution locational marginal pricing (DLMP) and safe operation power meeting the safety operation criteria of a distribution network. The maximization of revenue for aggregators is considered in the upper-level model, whereas with the safety of power flow and voltage limits taken into account, the lower-level model is developed to maximize social benefits. To ensure compliance with safety standards in the aggregators' bidding plans, stage one of the lower-level model is employed to determine safe operation power and the DLMP obtained through stage two jointly guides aggregators in adjusting bidding plans. To ensure that safe operation power constraints align with aggregators' bidding plans and maximize their profits, the model is solved via the alternating direction method of multipliers. This algorithm facilitates iterative optimization of aggregators' bidding plans, adjusting them until the stage-one safety constraints are fully satisfied. This process effectively mitigates network congestion and voltage overrun issues, enabling the DLMP to converge toward the predicted day-ahead market-clearing price that balances economic efficiency and operational security. Finally, a modified IEEE33-bus system is used to verify the rationality and effectiveness of the proposed method.
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ELECTRICAL ENGINEERING
ISSN: 0948-7921
Year: 2025
1 . 6 0 0
JCR@2023
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ESI Highly Cited Papers on the List: 0 Unfold All
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30 Days PV: 1
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