Optimal Energy Transaction Between a Retail Market Operator and MG operators Considering Network Reconfiguration

Abstract

This paper presents energy-trading scheduling considering distribution network reconfiguration using a Leader-Followers game model that has a concept of leader and followers. With Distflow equation of power flow, the proposed framework uses a bi-level optimization approach to represent the hierarchical structure of a retail market operator represented as the distribution system operator (DSO) in this paper and microgrids (MGs) operator. The optimization problem is transformed into an equivalent single-level problem by using Karush-Kuhn-Tucker conditions. The DSO solves the single-level problem to minimize purchasing power from the transmission system by considering the stability of the network, and considering that the MG operator seeks to maximize operating profit. The proposed algorithm provides the network operation cost decreased by 0.4%, and the amount of energy transaction increased by 5%. Therefore, it is suitable for energy trading activation, considering the network reconfiguration in situations where each microgrid has resources having different capacities.