Real-time optimization of distribution system considering interaction between markets

In this paper a novel architecture for real-time optimization is proposed based on Receding Horizon Control (RHC). The proposed architecture is capable of including real-time system data and can incorporate uncertainties in resources and market price.The main focus is to interface an active distribution network to wholesale market and neighboring Distribution System Companies (DISCOs) incorporating real-time price prediction. The effectiveness of proposed method is examined on a modified 32-bus distribution network incorporating Distributed Generators (DGs) such as wind and storage, neighboring DISCOs and wholesale market entities. It has been observed that the proposed method outperforms conventional methods and has the potential to implement dynamic stochastic optimal power distribution in modern power grid.