A day-ahead market energy auction for distribution system operation

In this paper, we study a Day-ahead Market(DAM) double energy auction in a distribution system involving dispatchable generation units, renewable generation units supported by battery storage systems(BSSs), fixed loads, price responsive loads, and supply from the Wholesale Market(WSM) at Locational Marginal Price (LMP). The auction is implemented within a Distribution System Operator (DSO) premises using Mixed Integer Linear Programming (MILP). The proposed auction is cleared at the Distribution LMP (DLMP) and is observed to be weakly budget balanced if no penalty is applied for DSO's deviation from its original commitment with the WSM. Furthermore, the dynamics of DLMP versus LMP, and their effect on distribution market participants scheduled quantities as well as the WSM supply to the distribution system is investigated.