Sina Parhizi

Sina Parhizi, Amin Khodaei, Mohammad Shahidehpour

An optimal scheduling model for a microgrid participating in the electricity distribution market in interaction with a Distribution Market Operator (DMO) is proposed in this paper. The DMO administers the established electricity market in the distribution level, sets electricity prices, determines the amount of the power exchange among market participants, and interacts with the Independent System Operator (ISO). Considering a predetermined main grid power transfer to the microgrid, the microgrid scheduling problem will aim at balancing the power supply and demand while taking financial objectives into account. Numerical simulations exhibit the application and the effectiveness of the proposed market-based microgrid scheduling model and further investigate merits over a price-based scheme.

Sina Parhizi, Amin Khodaei, Shaghayegh Bahramirad

There are various undergoing efforts by system operators to set up an electricity market at the distribution level to enable a rapid and widespread deployment of distributed energy resources (DERs) and microgrids. This paper follows the previous work of the authors in implementing the distribution market operator (DMO) concept, and focuses on investigating the clearing and settlement processes performed by the DMO. The DMO clears the market to assign the awarded power from the wholesale market to customers within its service territory based on their associated demand bids. The DMO accordingly settles the market to identify the distribution locational marginal prices (DLMPs) and calculate payments from each customer and the total payment to the system operator. Numerical simulations exhibit the merits and effectiveness of the proposed DMO clearing and settlement processes.

Sina Parhizi, Amin Khodaei

This paper presents an optimal scheduling model for a microgrid participating in the electricity distribution market in interaction with the Distribution Market Operator (DMO). The DMO is a concept proposed here, which administers the established electricity market in the distribution level, i.e., similar to the role of Independent System Operator (ISO) in the wholesale electricity market, sets electricity prices, determines the amounts of the power exchange between market participators, and interacts with the ISO. Considering a predetermined main grid power transfer to the microgrid, the microgrid scheduling problem will aim at balancing the power supply and demand while taking financial objectives into account. A stochastic programming method is employed to model prevailing uncertainties in the microgrid grid-connected and islanded operations. Numerical simulations exhibit the application and the effectiveness of the proposed market-based microgrid scheduling model.

Sina Parhizi, Amin Khodaei

The increased need for reliable, resilient, and high quality power combined with a falling cost of distributed generation technologies has resulted in a rapid growth of microgrid in power systems. Although providing multitude of benefits, the microgrid power transfer with the main grid, which is commonly obtained using economy and reliability consideration, may result in major operational drawbacks, most notably, a large mismatch between actual and forecasted system loads. This paper investigates the impact of high penetration microgrids on the power system net load, and further proposes three paradigms that can be adopted to address the emerging operational issues. The IEEE 6-bus test system is used for numerical studies and to further support the discussions.

Sina Parhizi, Alireza Majzoobi, Amin Khodaei

Introduction of market mechanisms in distribution systems is currently subject to extensive studies. One of the challenges facing Distribution Market Operators (DMOs) is to implement a fair and economically efficient pricing mechanism that can incentivize consumers to positively contribute to grid operations and to improve economic performance of the distribution system. This paper studies a penalty-based pricing mechanism in distribution markets and further investigates the interrelationship between the locational marginal prices (LMPs) at transmission and distribution levels. As a result, a closed-form relationship between these LMPs is derived. The possibility of zeroing out the settlement profit is further investigated under the proposed pricing mechanism.

Sina Parhizi, Amin Khodaei

Distribution markets are among the prospect being considered for the future of power systems. They would facilitate integration of distributed energy resources (DERs) and microgrids via a market mechanism and enable them to monetize services they can provide. This paper follows the ongoing work in implementing the distribution market operator (DMO) concept, and its clearing and settlement procedures, and focuses on investigating the pricing conducted by the DMO. The distribution locational marginal prices (D-LMPs) and their relationship with the transmission system locational marginal prices (T-LMPs) are subject of this paper. Numerical simulations on a test distribution system exhibit the benefits and drawbacks of the proposed DMO pricing processes.