Loading...

Optimal Contract Pricing of Distributed Generation in Iran

Sadeghi-Mobarakeh, Ashkan | 2012

1067 Viewed
  1. Type of Document: M.Sc. Thesis
  2. Language: Farsi
  3. Document No: 43734 (46)
  4. University: Sharif University of Technology
  5. Department: Energy Engineering
  6. Advisor(s): Rajabi-Ghahnavieh, Abbas
  7. Abstract:
  8. Increase in electricity demands and expansion cost of the power system as well as raising more concerns on environmental issues have led to increasing attraction towards Distributed Generation (DG) application in power systems. DG is generally defined as small generation units, ranging from several KW to several MW, that are installed on the distribution network. In Iran, the energy generated by DG units is purchased by Tavanir or distribution companies through guaranteed fixed-price purchase contract. The contract price imposes substantial effects on the cost and benefit of DG owners as well as those of the distribution company (DisCo). A logical and fair pricing model can provide more incentive for DG application.This thesis aims to find optimal contract price of dispatchable DG units in distribution networks considering competition among them. The proposed pricing model is characterized by a multi-leader single-follower game in which the DG units and DisCo act as leaders and follower, respectively. The leaders seek the maximization of the individual profits, while the follower wants to minimize the cost of buying energy from the wholesale electricity market and DG units.In the proposed model, the follower optimization problem acts as a constraint in each leader problem. Substituting the followers problem by its Karush-Kuhn-Tucker (KKT) optimally conditions turns each leader problem into a single-level optimization problem which is known as a Mathematical Problems with Equilibrium Constraints (MPEC). Considering all the MPEC together and using the KKT related to them, the problem becomes an Equilibrium Problems with Equilibrium Constraints (EPEC) .The EPEC is formulated as a nonlinear programming (NLP) problem and then solved using sequential quadratic programming (SQP) method.The proposed method has been applied to a six-bus test system and the impact of DG location, electricity market price and system demand on DG contract prices have been studied. It was observed that the proposed model provides efficient incentives to independent DG units to participate in supply the load and share the benefit of DisCo resulted from reduction in energy loss. It was concluded that the proposed pricing method is fair as it gives higher price to more beneficial unit and can adjust the payments according to the importance of the unit in each load and market price situation. The impact of competition among DG units has been examined. It was observed that the competition between DG units is beneficial to DisCo and must be correctly modeled in DG pricing problem

  9. Keywords:
  10. Dispersed Generation ; Nash Equilibrium Point ; Distribution Company (Dic Co) ; Mathematical Programs with Equilibrium Constraints (MPEC)Game Theory ; Equilibrium Problems with Equilibrium Constraints (EPEC)Game Theory

 Digital Object List

 Bookmark

No TOC