Optimal Dispatch Model considering Flexible Demand Resources and Bidding Uncertainty of Distributed Generation

The increasing proportion of distributed generation (DG) brings intermittency and indeterminacy to the power grid, and the rising amount of the flexible demand resources (FDRs) is re-shaping the way in which electricity markets are operated. This paper aims at the market operation mechanisms considering the uncertain DG and the FDRs. Firstly, the bidding strategies of DG can be formulated according to their risk preferences, and the corresponding bidding strategies based on Pareto front have been constructed. Then, the FDRs are also taken into consideration in the process of market trades and centralized clearance. Lastly, an optimal dispatch model is established where the independent system operator (ISO) will minimize the total costs based on the above risk-based behaviors of DG and the dispatchable FDRs. Numerical results of the simulation case studies are utilized to illustrate the feasibility of the model.