A Multiperiod Energy Acquisition Model for a Distribution Company With Distributed Generation and Interruptible Load

This paper presents a multiperiod energy acquisition model for a distribution company (Disco) with distributed generation (DG) and interruptible load (IL) in a day-ahead electricity market. Assuming that cost information for individual generation companies (Gencos) and Discos is known, the Disco´s energy acquisition strategy is modeled as a bilevel optimization problem with the upper subproblem representing individual Discos and the lower subproblem representing the independent system operator (ISO). The upper subproblem maximizes individual Discos´ revenues. The lower subproblem simulates the ISO´s market clearing problem that minimizes generation costs and compensation costs for interrupting load. The bilevel problem is solved by a nonlinear complementarity method. An 8-bus system is employed to illustrate the proposed model and algorithm. In particular, the roles of DGs and ILs to alleviate congestion are analyzed