Optimal Dispatch of Renewable and Virtual Power Plants in Smart Grid Environment through Bilateral Transactions

In a competitive power market, assessment of optimal bilateral transactions is very important for achieving more financial benefits without any stability, security and reliability issues. Due to the open access transmission network and the wide deployment of renewable energy sources (RES) and virtual power plants (VPP), dispatch of VPP and RES units through bilateral transactions become complex. This paper presents an efficient approach for the determination of optimal and feasible bilateral transactions among the power traders in a smart grid based on proposed factors, i.e., active participation factor (APF), maximum loading point (MLP) and load distribution factor (LDF). The objective of the proposed tri-level dispatch model is to minimize the cost of generation and transmission cost of transactions by using a mixed integer nonlinear programming (MINLP) technique. The proposed market dispatch model efficiently gets rid of the congestion in the transmission network and enhances the power transfer capability of the network, i.e., transaction dispatch capability of the network. The performance of the proposed tri-level model has been validated on the modified IEEE-14 bus system and modified IEEE-30 bus system.