Medium term Planning of Strategic Consumer in Competitive Electricity Markets Under Uncertainty

Abstract

Abstract:This paper propses a novel framework for medium term planning of strategic consumer in both the future and spot market under uncertainty. The strategic behavior of a strategic consumer is determined based on optimal bidding to the spot market and the best  selling in the future market to maximize expected profit. The uncertainty in procedurs offer curves is also modeled via sets of scenarios. The problem is modeled as a two-stage bi-level stochastic optimization problem, where in the first stage the demand purchased from the future market is obtained and in the second stage the required demands which should be purchased from the spot market, are calculated as stochastic variable. The primary two stage  bi-level problem is changed to a single stage bi-level optimization problem by using KKT conditions, that renders to a single level problem that known as a mathematical program with equilibrium constraints (MPEC). In order to assess the proposed framework, the proposed model is examined on the transmission network of MAZANDARAN regional electric company (MREC) and results are reported and discussed in several cases.

Keywords


[1] K. Zare, A. J. Conejo, M. Carrión and M. P. Moghaddam, “Multi-market energy procurement for a large consumer using  a risk-aver-sion procedure,” Elect. Power Syst. Res., vol. 80, no. 1, pp. 63–70, Jan 2010.
[2] Y. Liu and X. Guan, “Purchase allocation and demand bidding inelectric power markets,” IEEE Trans. Power Syst., vol. 18, no. 1, pp.106–112, Feb. 2003.
[3] D. Menniti, F. Costanzo, N. Scordino and N. Sorrentino, “Purchase-bidding strategies of an energy coalition with demand-response capa-bilities,” IEEE Trans. Power Syst., vol. 24, no. 3,, pp. 1241–1255, Aug 2009
[4] A. B. Philpott and E. Pettersen, “Optimizing demand-side bids in day-ahead electricity markets,” IEEE Trans. Power Syst., vol. 21, no. 2, pp.488–498, May 2006.
[5] M. Carrión, A. B. Philpott, A. J. Conej and J. M. Arroyo, “A sto-chastic programming approach to electric energy procurement for largeconsumers,” IEEE Trans. Power Syst., vol. 22, no. 2, pp. 744-754, May2007.
[6] D. S. Kirschen, “Demand-side view of electricity markets,” IEEE Trans. Power Syst., vol. 18, no. 2, pp. 520–527, May 2003.
[7] E. Bompard, Y. Ma, R. Napoli and G. Abrate, “The demand elasticityimpacts on the strategic bidding behavior of the electricity producers,”IEEE Trans. Power Syst., vol. 22, no. 1, pp. 188–197, Feb. 2007.
[8] K. Spees and L. B. Lave, “Demand response and electricity market efficiency,” Electricity J., vol. 20, no. 3, Apr. 2007.
[9] R. Herranz, A. M. J. Roque, J. Villar and F. A. Campos, “Optimal demand-side bidding strategies in electricity spot markets,” IEEE Trans.Power Syst., vol. 27, no. 3, pp. 1204–1213, Aug. 2012.
[10] S.A. Gabriel, A. J. Conejo, J.D. Fuller, B. F.Hobbs and C. Ruiz, Complementarity Modeling in Energy Markets, ser. International Series inOperations Research & Management Science. New York, NY, USA: Springer, 2012.
[11] M. Zarif, M. H. Javidi and M. S. Gazizadeh,” Electricity Procurement for Large Consumers with Second Order Stochastic Dominance Constraints”, Iranian Journal of Electrical & Electronic Engineering, vol. 8, no. 2, June 2012
[12] M. Zarif, M. H. Javidi and M. S. Gazizadeh, ”Self-scheduling of large consumers with second-order stochastic dominance constraints,” IEEE Trans on Power Syst, vol. 28, no. 1, Feb 2013.
[13] Dipti Srinivasan, Ly Trong Trung and Chanan Singh, ”Bidding and cooperation strategies for electricity buyers in power markets, ” IEEE Systems Journal, vol. PP, pp.1-12, July2014
[14] K. Zare, M. Parsa Moghaddam and M. K. Sheikh-El-Eslami, ”Risk-based electricity procurement for large consumers,” IEEE Trans on Power Syst, vol. 26, no. 4, Nov 2011
[15] S. Nojavan, H. Ghesmati and K. Zare, ”Robust optimal offering strategy of large consumer using IGDT considering demand response programs,” Electric Power Systems Research, vol.130, pp. 46–58, January 2016
[16] S. Jalal Kazempour, Antonio J. Conejo and Carlos Ruiz, ” Strategic bidding for a large consumer, ” IEEE Trans. Power Syst, vol. 30, no. 2, March 2015
[17] ولی نژاد و بارفروشی، «ارزیابی تاثیر مشوق‌های سرمایه‌گذاری تحت شرایط عدم­قطعیت روی برنامه‌ریزی توسعه تولید در بازارهای رقابتی برق»، مجله مهندسی برق دانشگاه تبریز، جلد 46، شماره 75، بهار 95- صص 368-357
[18] ارسلان نجفی، حمید فلقی و مریم رمضانی، «تصمیم گیری خرید انرژی الکتریکی برای مصرف کنندگان بزرگ در حضور توربینهای بادی»، مجله مهندسی برق دانشگاه تبریز جلد 46، شماره 77 ، پائیز 95- صص 340-329
[19] Antonio J. Conejo, Miguel Carrión and Juan M. Morales,Decision Making Under Uncertainty in Electricity Markets, ” Springer New York Dordrecht Heidelberg London,2010
[20] C. Ruiz and A. J. Conejo, “Pool strategy of a producer with endogenous formation of locational marginal prices,” IEEE Trans. Power Syst., vol. 24, no. 4, pp. 1855–1866, Nov. 2009.
[21] Jaber Valinejad and Taghi Barforoushi, ”Generation expansion planning in electricity markets: A novel framework based on dynamic stochastic MPEC,” Electrical Power and Energy Systems,pp.108–117, 2015