Day-ahead scheduling of an active distribution network considering energy and reserve markets

SUMMARY High penetration of distributed energy resources (DERs) has led to considerable evolution in the operational aspects of distribution systems. As a result, distribution companies (DISCOs) tend to utilize optimization in order to schedule their DERs to meet their demand as well as participation in the electricity markets. This study presents a comprehensive operation model for a distribution system which involves DISCO participation in energy production and reserve providing activities. The uncertainties are modeled by means of a chance constraint representing the confidence level of serving load by DISCO. The presented model can incorporate DERs (both dispatchable and non‐dispatchable units) along with network constraints and load and wind uncertainties in order to achieve optimal decisions in both day‐ahead energy and reserve markets. A modified 32‐bus distribution network including dispatchable generators, electric energy storage, wind turbine units, interruptible loads, and interties is employed to illustrate the effectiveness and feasibility of the proposed method. Copyright © 2012 John Wiley & Sons, Ltd.