Power Distribution Expansion Planning in the Presence of Wholesale Multimarkets

By deregulating the countries' electricity industry, the market players must adapt their performance to the deregulated environment. In this article, a risk-based stochastic optimization framework is proposed to model the participation of distribution system operator (DSO) in distribution expan...

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Bibliographic Details
Published in:IEEE systems journal 2023-03, Vol.17 (1), p.1684-1693
Main Authors: Nourollahi, Ramin, Gholizadeh-Roshanagh, Reza, Feizi-Aghakandi, Hamideh, Zare, Kazem, Mohammadi-Ivatloo, Behnam
Format: Article
Language:English
Subjects:
Conditional value at risk
Costs
Deregulation
distribution expansion planning (DEP)
Electricity
electricity multimarkets
Investment
Load modeling
Mathematical models
mixed integer linear programming
Optimization
Planning
Risk
Substations
Uncertainty
uncertainty modeling
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Summary:By deregulating the countries' electricity industry, the market players must adapt their performance to the deregulated environment. In this article, a risk-based stochastic optimization framework is proposed to model the participation of distribution system operator (DSO) in distribution expansion planning (DEP) problems in the presence of electricity wholesale multimarkets. Based on the proposed methodology in this article, the DSOs will be able to invest in the DEP by taking the benefits and imposed risks of the existing electricity multimarkets, i.e., forward contract, day-ahead, and balancing markets, to manage the risks of long-term uncertainties. The DSOs, who are the only retail suppliers in a specific region, can cover their DEP costs by offering fair retail prices to the retail consumers. Besides, DSOs could form diverse long- and short-term portfolios from the different electricity markets to procure the forecasted real loads and loss power of the network over the planning horizon. The diverse portfolio of the suppliers and a fair retail price can satisfy the DSOs to consider the multimarkets in the DEP process. Furthermore, the risk of uncertainties is modeled using the method of conditional value at risk (CVaR). Based on the obtained results, the DSO can reduce network loss costs by procuring power from markets rather than increasing the installed branches' ampacity by considering multimarkets and market price uncertainties. Besides, the obtained profit of DSO is increased by 12.16% in the proposed electricity multimarket environment.
ISSN:1932-8184
1937-9234
DOI:10.1109/JSYST.2022.3192091