A Day Ahead Market Energy Auction for Distribution System Operation

TL;DR

This paper proposes a day-ahead energy auction model for distribution systems, integrating various generation and load types, and analyzes its economic and operational impacts using mixed integer linear programming.

Contribution

It introduces a novel auction framework for distribution system operation that incorporates renewable, dispatchable, and responsive loads within a MILP-based implementation.

Findings

Auction clears at Distribution LMP with weak budget balance.

DLMP dynamics influence participant scheduling and WSM supply.

Model effectively integrates renewable and responsive loads.

Abstract

In this paper, we study a day ahead double energy auction in a distribution system involving dispatchable generation units, renewable generation units supported by battery storage systems(BSSs), fixed loads, price responsive loads, and supply from the Whole Sale Market(WSM) at Locational Marginal Price(LMP). The auction is implemented within a Distribution System Operator (DSO) premises using Mixed Integer Linear Programming (MIP). The proposed auction is cleared at the Distribution LMP (DLMP) and is observed to be weakly budget balanced if no penalty is applied for DSO's deviation from originally committed supply from the WSM. Furthermore, the dynamics of LMP and DLMP, and their effect on distribution market participants scheduled quantities as well as the WSM supply to the distribution system is investigated.