Optimal management of demand response aggregators considering customers' preferences within distribution networks

Saber Talari; Miadreza Shafie-Khah; Nadali Mahmoudi; Pierluigi Siano; Wei Wei; João P.S. Catalão

Optimal management of demand response aggregators considering customers' preferences within distribution networks

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Author(s): Saber Talari¹ ; Miadreza Shafie-Khah² ; Nadali Mahmoudi³ ; Pierluigi Siano⁴ ; Wei Wei⁵ ; João P.S. Catalão⁶
- Affiliations: 1: University of Cologne , Cologne , Germany ;
  2: University of Vaasa , Vaasa , Finland ;
  3: University of Queensland , Brisbane , Australia ;
  4: University of Salerno , Fisciano , Italy ;
  5: Tsinghua University , Beijing , People's Republic of China ;
  6: Faculty of Engineering of the University of Porto and INESC TEC , Porto , Portugal
Source: Volume 14, Issue 23, 04 December 2020, p. 5571 – 5579
DOI: 10.1049/iet-gtd.2020.1047 , Print ISSN 1751-8687, Online ISSN 1751-8695

Received 25/05/2020, Accepted 27/08/2020, Revised 26/07/2020, Published 14/09/2020

In this study, a privacy-based demand response (DR) trading scheme among end-users and DR aggregators (DRAs) is proposed within the retail market framework and by distribution platform optimiser. This scheme aims to obtain the optimum DR volume to be exchanged while considering both DRAs' and customers' preferences. A bi-level programming model is formulated in a day-ahead market within retail markets. In the upper-level problem, the total operation cost of the distribution system is minimised. The production volatility of renewable energy resources is also taken into account in this level through stochastic two-stage programming and Monte–Carlo simulation method. In the lower-level problem, the electricity bill for customers is minimised for customers. The income from DR selling is maximised based on DR prices through secure communication of household energy management systems and DRA. To solve this convex and continuous bi-level problem, it is converted to an equivalent single-level problem by adding primal and dual constraints of lower level as well as its strong duality condition to the upper-level problem. The results demonstrate the effectiveness of different DR prices and different number of DRAs on hourly DR volume, hourly DR cost and power exchange between the studied network and the upstream network.

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