Bi-level optimised

• Main Authors: Qingshan Xu, Yongli Ji, Qifeng Huang, Yehong Sheng
• Format: Article
• Language: English
• Published: Wiley 2018-12-01
• Series: IET Smart Grid
• Subjects: optimisation; power generation economics; demand side management; smart power grids; decision making; power markets; power generation dispatch; level optimised dispatch strategy; electric supply–demand balance; risk–benefit coordination; smart grid; electricity market; schedulable resources; great concern; power supply; bi-level system; bi-level programming; ISO; load aggregator; bidding plans; improved step-wise bidding method; risk attitudes; upper level; chance-constrained programming method; bi-level optimised strategy; decision makers; decentralised schedulable resources
• Online Access: https://digital-library.theiet.org/content/journals/10.1049/iet-stg.2018.0003

With the development of smart grid and electricity market, schedulable resources of demand-side attract great concern. To implement the balance between power supply and demand by utilising demand-side schedulable resources, a bi-level system is established and a bi-level programming between independent system operator (ISO) and load aggregator (LA) is proposed in this study. LA in the lower level integrates decentralised schedulable resources and makes bidding plans by adopting the improved step-wise bidding method in view of its risk attitudes, realising the unification of low risk and high profit. ISO in the upper level introduces the chance-constrained programming method to make risk–benefit coordinated decisions considering uncertainties on the basic of bidding information and power supply–demand prediction. The simulation analyses show that the proposed bi-level optimised strategy is effective for obtaining satisfactory decision schemes based on decision makers’ risk preferences.