Transactive market clearing model with coordinated integration of large-scale solar PV farms and demand response capable loads

Abstract

This paper proposes a bi-level transactive market clearing model with a coordinated integration of large-scale renewable and end-users' demand response (DR) capable loads. The model involves two levels hierarchical decision. In upper-level, responsive load scheduling problem to minimize demand response (DR) compensation cost is solved for DR aggregator. The lower-level deals priority order dispatch of generation resources including a solar PV farm (PVF) while considering the committed DR in upper-level to minimize day-ahead operation cost. Mixed integer linear programming (MILP) is used to solve aggregator's problem in upper-level and security constrained optimal power flow (OPF) is used for the later. Supply offer price of PVF is captured by a probability density function. Storage units are considered to backup farm's dispatch capability beyond of peak sun hours (PSH) and assume to be getting charged by its surplus energy. The model has been verified using a sample 6-bus power system with several case studies to demonstrate benefits of large-scale PV and DR aggregation.