TY - JOUR
T1 - Optimal Demand Response Incorporating Distribution LMP with PV Generation Uncertainty
AU - Park, Byungkwon
AU - Chen, Yang
AU - Olama, Mohammed
AU - Kuruganti, Teja
AU - Dong, Jin
AU - Wang, Xiaofei
AU - Li, Fangxing
N1 - Publisher Copyright:
© 1969-2012 IEEE.
PY - 2022/3/1
Y1 - 2022/3/1
N2 - The utilization of aggregated demand-side flexibility via demand response (DR) has become a promising pathway for the integration of renewable energy resources in power systems. Nowadays, there are several management strategies for DR such as the price-based transactive control strategies. However, many of such existing price-based control strategies neglect the physics and operational constraints of the underlying distribution networks when computing the price, raising concerns regarding their theoretical and practical values. This paper studies this issue and investigates optimal DR (ODR) by incorporating the distribution locational marginal price (DLMP). In particular, we discuss DR in connection with DLMPs and propose a multi-period bilevel optimization problem to find the ODR strategy. The objective is to minimize the peak load, load fluctuation, and payments of load aggregators. In addition, a robust bilevel ODR model is formulated to provide a robust ODR strategy while minimizing operating costs under the worst-case realization of uncertainties; this mitigates the impact of forecasting errors on renewable energy resources. Then, we propose an efficient solution approach by employing the Karush-Kuhn-Tucker conditions and strong duality. Simulation results are presented to illustrate the mutual impacts of the interaction between DR and DLMP and the benefits of the robust ODR strategy.
AB - The utilization of aggregated demand-side flexibility via demand response (DR) has become a promising pathway for the integration of renewable energy resources in power systems. Nowadays, there are several management strategies for DR such as the price-based transactive control strategies. However, many of such existing price-based control strategies neglect the physics and operational constraints of the underlying distribution networks when computing the price, raising concerns regarding their theoretical and practical values. This paper studies this issue and investigates optimal DR (ODR) by incorporating the distribution locational marginal price (DLMP). In particular, we discuss DR in connection with DLMPs and propose a multi-period bilevel optimization problem to find the ODR strategy. The objective is to minimize the peak load, load fluctuation, and payments of load aggregators. In addition, a robust bilevel ODR model is formulated to provide a robust ODR strategy while minimizing operating costs under the worst-case realization of uncertainties; this mitigates the impact of forecasting errors on renewable energy resources. Then, we propose an efficient solution approach by employing the Karush-Kuhn-Tucker conditions and strong duality. Simulation results are presented to illustrate the mutual impacts of the interaction between DR and DLMP and the benefits of the robust ODR strategy.
KW - Active distribution network
KW - bilevel optimization
KW - demand response
KW - locational marginal pricing
KW - robust optimization
UR - http://www.scopus.com/inward/record.url?scp=85113884377&partnerID=8YFLogxK
U2 - 10.1109/TPWRS.2021.3107671
DO - 10.1109/TPWRS.2021.3107671
M3 - Article
AN - SCOPUS:85113884377
SN - 0885-8950
VL - 37
SP - 982
EP - 995
JO - IEEE Transactions on Power Systems
JF - IEEE Transactions on Power Systems
IS - 2
ER -
