Cooperative energy interaction for neighboring multiple distribution substation areas considering demand response

With the growing integration of renewable energy into medium- and low-voltage distribution networks, the distribution substation area (DSA) has emerged, encompassing energy storage and loads. This paper introduces an energy interaction framework for multiple DSAs aimed at enhancing local renewable energy consumption. The energy interaction issue among various DSAs is modeled as a Nash bargaining problem to encourage energy exchanges. However, the variability in pricing and internal demand response may influence scheduling decisions, necessitating further investigation. To address price forecast errors, scenarios are developed using a stochastic programming approach to represent price uncertainties while adjusting the DSA’s load accordingly. Optimal power flow constraints are integrated into the model to bolster power system operation security. Additionally, the transmission capacity can impact scheduling outcomes and operational costs. The influence of transmission limitations on operational strategies is examined within the allowable capacity. To solve this issue, the bargaining model is divided into two subproblems, and an enhanced alternating direction multiplier method (ADMM) is used to maintain the privacy of DSAs. The simulation results obtained using the IEEE-33 bus system indicate that energy interaction among multiple DSAs significantly lowers operating costs and facilitates the integration of renewable energy.