A Price-Based Bi-Level Scheduling Optimization Method for Power Systems and EA Enterprises

As a typical industrial load, electrolytic aluminum (EA) load is one of the most important demand-side resources. EA load participating in demand response (DR) is beneficial for EA industries to reduce energy bills and carbon emissions, and can also be coordinated with thermal units to cope with the uncertainties of renewable energy generations. Therefore, the research on the modeling and dispatch method of EA load for DR is of great significance to realize the economic operation of power systems. In this paper, a price-based bi-level scheduling optimization method for power systems and EA enterprises is proposed. The proposed model considers the power system and the EA enterprise as independent stakeholders, where the dynamic compensation prices are introduced to guide the DR of EA load. The formulated bi-level dispatch problem is addressed by the single-level reduction and the convexization techniques. Simulation results demonstrate the effectiveness of the proposed model. Corresponding to different aluminum profit per ton and carbon prices, the compensation price can be adjusted accordingly, which demonstrates the applicability of the proposed bi-level optimization model.