Commercial Demand Response Programs in Bidding of a Technical Virtual Power Plant

Regarding the potentials of activating commercial consumers in demand response programs, this paper proposes a new framework for energy scheduling of an active distribution network based on the concept of technical virtual power plant (TVPP), considering operational constraints of distribution network. The TVPP enables presence of commercial buildings and other distributed energy resources in day-ahead (DA) electricity market, as a price maker agent. In this regard, a bilevel optimization framework is designed to optimize the bidding strategy of TVPP in the DA market with the main goal of maximizing TVPP profit. The upper-level problem maximizes the TVPP profit, while in the lower level, market is cleared from independent system operator viewpoint. Using Karush-Kuhn-Tucker optimality conditions and strong duality theory, the proposed bilevel problem is transformed into mixed integer linear programming problem. Implementing the model on the Roy Billinton Test System (RBTS) test system demonstrates the applicability of the proposed model.