Security-Constrained Energy and Flexibility Bidding in Power Distribution Networks

Power system security is one of the most important aspects of the network operation which requires the absence of unmanageable contingency violations. This paper proposes a framework for designing a security-constrained energy and flexibility bidding strategy for a distribution system operator (DSO) to participate in wholesale market. In the proposed model, the DSO supervises and coordinates distributed energy resources (DERs) to optimally specify their energy and flexibility schedules, and to determine the optimal energy and flexibility bidding strategy in the wholesale market in order to maximize its profit. The DSO considers N-1 failure of distribution lines in its decision-making. In this way, the DSO's decisions in the pre-contingency condition minimize the costs associated with load curtailment and the required flexibility not supplied during contingencies. The proposed model is formulated as a mixed integer linear programming problem and the model effectiveness is demonstrated through implementation on a standard test system.