Multiperiod Planning of Distribution Networks Under Competitive Electricity Market With Penetration of Several Microgrids, Part I: Modeling and Solution Methodology

According to the increasing penetration of microgrids (MGs) in power systems, the design and implementation of these new emerged structures are under the question of planners, operators, and investors of electrical energy sector. This paper aims at finding a response for this question to present a game-based model under a competitive market for long-term multiperiod planning of a distribution network containing several MGs, such that it can model the impact of decision making of the distribution system operator (DSO) on the MG investor and vice versa, also improve MG allocation algorithms. To achieve this, a mixed-integer nonlinear bilevel programming is employed, where in the external level, DSO's objectives and in the internal level, MGs' objectives are optimized based on the dictation by DSO. Since solving this type of problems by employing the conventional tools is almost impossible, so a mathematical method is utilized to convert this problem to a standard form. In the proposed method, using the reformulation and linearization, the available binary variables are transformed to a continuous form and then are linearized.