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A robust linear approach for offering strategy of a hybrid electric energy company

Kazemi, M ; Sharif University of Technology | 2017

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  1. Type of Document: Article
  2. DOI: 10.1109/TPWRS.2016.2597338
  3. Publisher: Institute of Electrical and Electronics Engineers Inc , 2017
  4. Abstract:
  5. This paper presents a new approach for determining the day-ahead bidding strategies of a large-scale hybrid electric energy company. The company has both energy generation and energy retailing businesses in a competitive electricity market. Demand response programs are also considered in the retail side of the company in order to hedge the risk of participation in wholesale market. This paper introduces a max-min bilevel mathematical programming with equilibrium constraint model for offering a strategy that manages the risk of uncertain forecasted rivals' bids by robust optimization. The max-min bilevel model is converted to its equivalent single-level optimization using Karush-Kuhn-Tucker optimality conditions. The duality theory is utilized to find the equivalent ordinary maximization model of the max-min problem. Strong duality theory and big M method are also used to linearize the final model of offering strategy. Applicability of the proposed approach is shown by implementing it on the IEEE 118-bus test system. © 1969-2012 IEEE
  6. Keywords:
  7. Bidding strategy ; Commerce ; Linear programming ; Mathematical programming ; Optimization ; Competitive electricity markets ; Demand response programs ; Duality theory ; Energy generations ; Karush Kuhn Tucker optimality condition ; Mathematical programming with equilibrium constraints ; Robust optimization ; Power markets
  8. Source: IEEE Transactions on Power Systems ; Volume 32, Issue 3 , 2017 , Pages 1949-1959 ; 08858950 (ISSN)
  9. URL: https://ieeexplore.ieee.org/document/7529086