Multi-stage Primary-Secondary Planning Considering Wholesale-Retail Markets

Abstract

This chapter presents an approach for Integrated Distributed Generation and primary-secondary network Expansion Planning (IDGNEP) in the presence of wholesale and retail markets. The presented method uses a unified model to explore the impacts of retail market participants on the IDGNEP procedure. While the theory and practice of IDGNEP have advanced over the years, the Non-Utility Retail Market Participants (NURMPs) and Customers’ Active MicroGrids (CAMGs) introduce some other resources which can also be included in distribution network planning exercises. An electric distribution network may interchange energy with wholesale/retail market participants and downward CAMGs. When the volume of the energy interchanged between the network and NURMPs/CAMGs is comparable with the volume of electricity delivered to the end users, the IDGNEP results may considerably be different from the condition that no energy is interchanged. The presented model of IDGNEP is a Mixed Integer Non Linear Programming (MINLP) problem and the introduced algorithm decomposes the IDGNEP problem into multi sub-problems to achieve an optimal expansion planning of a network, in which the investment and operational costs are minimized, while the reliability of the network is maximized. Demand Side Management (DSM) programs, Distribution Automation (DA) investment alternatives and NURMP and CAMGs contribution scenarios which may significantly change the network’s resources are considered in IDGNEP formulation. The algorithm was successfully tested for an urban distribution network.

Appendix

The notations used throughout this chapter are listed below:

$E^{WM}$ :

Total energy purchased from the wholesale market to supply residual load

$E^{NURMP}$ :

Total energy purchased from the NURMPs to supply residual load

$E^{CAMG}$ :

Total energy purchased from the CAMGs to supply residual load

$Cap_{DNUDG}$ :

Generation capacity prepared by DNUDG

$Cap_{DL}$ :

Load reduction capacity prepared by DL

$C_{\Omega }$ :

Present worth of cost allocation of Ω set

$C_{\Gamma }$ :

Present worth of device installation cost of Γ set

$C_{\Delta }$ :

Present worth of NURMP/CDMG contribution cost of Δ set

$C_{\Lambda }$ :

Present worth of contribution cost of Λ set

$C_{{OP(\Xi )}}$ :

Present worth of operation costs of Ξ set

$N\_Fr$ :

Number of primary/secondary feeder type candidates for installation

MCP :

Marginal clearing price of the wholesale market

$Nyear$ :

Number of planning years

$N\_Critical\_Outage$ :

Number of network critical outages

$Np$ :

Number of load curve periods

Nzone :

Number of distribution network zones

$N\_RPS$ :

Number of RPS installation candidates

$N\_DSM$ :

Number of DSM installation candidates

$N\_DA$ :

Number of DA installation candidates

N_UDG :

Number of UDG installation alternatives

N_NURMP :

Number of NURMP installation scenario at the second stage problem

$N\_CDMG$ :

Number of CDMG contribution alternatives

N_NDNUDG :

Number of NDNUDG contribution alternatives

N_DNUDG :

Number of DNUDG contribution alternatives

N_DL :

Number of DL contribution alternatives

N_NDL :

Number of NDL contribution alternatives

$Nsub$ :

Number of primary/secondary substations candidates

$price_{{}}^{NURMP}$ :

Price of energy purchased from the NURMPs to supply residual load

$price_{{}}^{CDMG}$ :

Price of energy purchased from the CDMGs to supply residual load

Trans_Service_price :

Transmission service price of upward transmission network which delivers energy to the DSO

W :

Weighting Factor

WM_Sc :

Number of wholesale market price scenarios

NURMP_Sc :

Number of NURMP contribution scenarios

CDMG_Sc :

Number of CDMG contribution scenarios

$\alpha$ :

Generation capacity fee of DNUDG

$\beta$ :

Energy generation fee of DNUDG

$\chi$ :

Load reduction energy fee of DL

$\varphi_{WM}^{Purchase\_Scenario}$ :

Decision variable of purchasing energy from the wholesale market

$\varphi_{NURMP}^{Purchase\_Scenario}$ :

Decision variable of purchasing energy from NURMP

$\varphi_{CDMG}^{Purchase\_Scenario}$ :

Decision variable of purchasing energy from CMDG

$\gamma$ :

Load reduction option fee of DL

$\eta$ :

Load reduction energy fee of NDL

$\sigma$ :

Present worth factor

$\varsigma$ :

Load reduction fee of DL

$\tau$ :

Time duration of NURMP contribution

$\varpi$ :

CDMG power generation contribution

$\psi$ :

Decision variable for device installation or UDG/DNUUDG/CDMG/DL contribution

$\phi$ :

Decision variable for UDG/DNUUDG/CDMG/DL contribution coordination problem