A long-term energy purchasing model of distribution company in power market with DG and multi-types contracts

This paper proposed an optimization long-term energy purchasing model of a distribution company (Disco) in transmission and distribution separated power market based on pool and financial bilateral contracts. Additionally there are some distributed generations (DG) in the power systems. Thus, the Disco purchases electricity energy according to the offers of DG units, Pool and several types bilateral contracts. In order to minimize its electricity purchasing cost, the Disco should determine the amount of energy bought from different electricity sources. The novel contribution of this paper is the bilateral contract considered be multiple types and every type contract framework in the purchasing model is flexible enough to accommodate many real-world bilateral electricity agreements.