A Generic Operations Framework for Discos in Retail Electricity Markets

A generic operations framework for a distribution company (disco) operating in a competitive electricity market environment is presented in this paper. The operations framework is a two-stage hierarchical model in which the first deals with disco's activities in the day-ahead stage, the Day Ahead Operations Model (DAOM). The second deals with disco's activities in real-time and is termed Real-Time Operations Model (RTOM). The DAOM determines the disco's operational decisions on grid purchase, scheduling of distributed generation (DG) units owned by it, and contracting for interruptible load. These decisions are imposed as boundary constraints in the RTOM and the disco seeks to minimize its short-term costs keeping in mind its day-ahead decisions. A case-study is presented considering the well-known 33-bus distribution system and three different scenarios are constructed to analyze the disco's actions and decision-making in this context.