Bi-level Optimization of Energy Management for Agro Food Park in Distribution Market

This paper develops a bi-level optimization model for energy management in an Agro Food Park (AFP) microgrid, enabling its participation in the distribution market. The upperlevel highlights minimize the operation costs of the AFP microgrid, and the clearing electricity price is counted as part of the distribution market. The proposed approach maximizes the prominent regulation of the AFP load and optimizes energy operation management. And the lower-level is designed to compute the clearing Distribution Locational Marginal Prices (DLMPs) within the distribution grid. The DLMPs are subsequently sent to the upper-level model. The bi-level model is then reformulated into a Mathematical Programming with Equilibrium Constraints (MPEC) problem, resolving through a branching and delimitation method. Lastly, the effectiveness and verifiability of the proposed model are confirmed via the IEEE33 bus distribution system with an AFP microgrid. The results illustrate that the energy management strategy of the AFP microgrid yields a reduction in overall energy costs.