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Robust Solution Approach for Bilevel Demand Response Game at Distribution Level

by Yang Chen, Kadir Amasyali, Mohammed M Olama, Byungkwon Park
Publication Type
Conference Paper
Book Title
2022 IEEE Power & Energy Society General Meeting (PESGM)
Publication Date
Page Numbers
1 to 5
Publisher Location
Denver, Colorado, United States of America
Conference Name
2022 IEEE Power & Energy Society (PES) General Meeting
Conference Location
Denver, Colorado, United States of America
Conference Sponsor
IEEE
Conference Date
-

In this paper, a bilevel electricity pricing and demand response game between a distribution system operator (DSO) and load aggregators (LAs) is considered, and a robust decision model is proposed for the DSO to deal with the uncertainties from the wholesale market prices and demand consumptions of LAs. With the max-min objective at the upper level, the robust bilevel model is converted into a single level model by the Karush-Kuhn-Tucker (KKT) conditions and prime-dual transformation. Several groups of experiments have been conducted based on different preferences on uncertainty gaps and peak load reductions to show its effectiveness. After-the-fact scenario analysis has indicated that the robust solution is more beneficial in reducing the risk of inaccurate predictions as compared to the risk neutral strategy.