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This paper presents a comprehensive framework model of a distribution company with security and reliability consideration. Disco purchase its energy from its own DGs and in power market. Generalized Benders Decomposition method is implemented to solve Security constrained unit commitment. Only on/off binary variables are used as binary variables. Reliability indices, LOLP and EENS, are programmed with DELPHI language and linked with GAMS in order to satisfy reliability constraints in an iterative process. Reserve capacity is calculated as a way to improve the LOLP. Test results with an eight-bus system show the accuracy of the model and formulations.