A Hierarchical Electricity Market Structure for the Smart Grid Paradigm

Abstract

This paper proposed a hierarchical structure for the electricity market to facilitate the coordination of energy markets in distribution and transmission networks. The proposed market structure enables the integration of microgrids, which provide energy and ancillary services in distribution networks. In the proposed hierarchical structure, microgrids participate in the energy market at the distribution networks settled by the distribution network operator (DNO), and load aggregators (LAs) interact with microgrids and generation companies (GENCOs) to import/export energy to/from the distribution network electricity markets from/to the wholesale electricity market. The proposed approach addressed the synergy of energy markets by introducing dynamic game with complete information for GENCOs, microgrids, and LAs. The proposed hierarchical competition is composed of bi-level optimization problems in which the respective upper-level problems maximize the individual market participants' payoff, and the lower-level problems represent the market settlement accomplished by the DNO or the independent system operator. The bi-level problems are solved by developing sensitivity functions for market participants' payoff with respect to their bidding strategies. A case study is employed to illustrate the effectiveness of the proposed approach.

Multi-Period Hybrid AC/DC-OPF Model for Flexibility Market Clearing With Seamless TSO-DSO Coordination

“…Additional constraints have also been added, which define the flexibility assets present in the distribution grid, such as generating units, loads, and batteries. Equation (1) has been updated to include the contribution from the flexibility sources, as shown by equation (9). The production and load are constraints by their specified minimum and maximum limits.…”

“…The concepts and solutions for TSOs and DSOs coordination in the flexibility marketplace are still under development [4]- [6]. The literature demonstrated several possible schemes for TSO-DSO coordination [7]- [9]. The SmartNet project has summarized and suggested five possible schemes for FM market operation and coordination, which include centralized FM, local FM, shared balancing responsibility FM, common TSO-DSO FM, and integrated FM [10].…”

A Decentralized Distribution Market Mechanism Considering Renewable Generation Units With Zero Marginal Costs

“…A strategy is a dominant one if it maximizes the agent's expected utility for all possible strategies of other agents [16,24]. In the APM mechanism, both consumers and producers have dominant strategies.…”

Transmission and distribution coordination in power systems with high shares of distributed energy resources providing balancing and congestion management services

“…On the other hand, semi-definite programming (SDP) has been equally important for research (Bai, Wei, Fujisawa, & Wang, 2008;Jubril, Olaniyan, Komolafe, & Ogunbona, 2014;Lavaei & Low, 2012). Nevertheless, despite its drawbacks, the DC power flow has also been used for modeling distribution networks sometimes, as in the work done by Manshadi and Khodayar (2016).…”