A multipleriod 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.