Bi-Level Robust Optimization for Distribution System With Multiple Microgrids Considering Uncertainty Distribution Locational Marginal Price

With an increasing amount of renewable energy resources (RESs) integrated into both distribution system (DS) and microgrids (MGs), a proper market clearing mechanism is required and has a critical impact on the operation reliability and economy of the DS. Combining distribution locational marginal price (DLMP) and uncertainty distribution locational marginal price (ULMP), this article proposes a new electricity market clearing mechanism to charge both the power exchange and uncertain resources and coordinate DS and MGs. Based on the proposed market clearing mechanism, a bi-level coordinated robust economic dispatch model for DS and MGs is formulated. In the upper level, a two-stage robust economic dispatch model for DS is built, through which DLMP and ULMP are derived and then sent to MGs. In the lower level, each MG optimizes its dispatch based on the received DLMP and ULMP, which is modeled as a two-stage robust optimization model as well. The column and constraint generation algorithm is utilized to solve the robust economic dispatching model for both DS and MGs. Numerical results validate the effectiveness of the proposed bi-level robust economic dispatch model and solution method.

Automated summary

This article proposes a new electricity market clearing mechanism to coordinate distribution systems and microgrids, utilizing locational marginal prices. A bi-level coordinated robust economic dispatch model is formulated, with an upper level for distribution systems and a lower level for microgrids, using a column and constraint generation algorithm for solution. Numerical results confirm the effectiveness of the proposed model and method.