Optimal Energy Management of Disco in Electricity Markets

Abstract

The widespread implementation of competitive electricity markets in the world has leads to the establishment of Distribution Companies (DISCOs) and retailer companies, which act as intermediaries between Generation Companies (GENCOs) and customers. The retailors must manage two sets of contracts, namely the supply side and the demand side. Hence, this work presents a new structure for the optimal operation of distribution companies in the electricity market. Thus the main objective of this work is minimization of  the total operation cost of DISCOs, which includes costs of power acquired from the competitive market, power from Distributed Generations (DGs) feeding the distribution grid and the cost incurred due to power losses. This optimization is achieved using hybrid GA aided PSO (PSOGA) topology for the day-ahead market. The results obtained from an operation optimization, in terms of the optimal DG set-points, interruptible loads along with the radial configuration of the distribution system is furnished. Finally, the efficiency of this proposed topology is validated for an IEEE 33-bus system. The obtained results depict the efficacy of this proposed topology and economic advantages of optimally operating the DISCO.