A Bi-Level Scheduling Model of the Distribution System With a Distribution Company and Virtual Power Plants Considering Grid Flexibility

With the emergence of virtual power plants (VPPs) in distribution systems, companies (DISCOs) can manage distributed generators scattered across their systems. Interactions between each DISCO and VPP are expected to be crucial for securing system reliability without increasing operational complexity. This article proposes a bi-level scheduling model these interactions, considering ramping flexibility system. In upper level, minimizes system’s cost procuring by varying price traded with VPP. lower maximizes its profit managing amount it trades DISCO. We transform into single-level problem using Karush–Kuhn–Tucker optimality conditions linearization techniques. present case studies interactions VPPs, assumption that purchase active from wholesale market. The results demonstrate win–win situation both achieved exchanged while flexibility.