2018 Volume 31 Issue 4 Pages 137-149
This paper provides an efficient decision making framework for pricing of demand resources to manage voltage in a distribution network. Assuming that consumers in the distribution network have controllable loads which are helpful to manage voltage fluctuated by uncontrollable photovoltaic generations, we address an optimization problem of rewards for responses of consumers. This problem is a Stackelberg game in which a leader is a distribution network operator and followers are the consumers. It can be formulated as a bi-level programming problem, which is well-known as a NP-hard problem to solve due to its non-convexity. In order to obtain an exact optimal solution within a practical computational time, we employ a method to transform the problem with bilinear terms into the mixed-integer linear programming problem by a commercial optimization solver. Since the Pareto frontier is visualized for the distribution network operator, the most preferred solution can be chosen according to preference of he/she. In examples of computational experiments, the proposed approach successfully works to make a decision for the efficient distribution network management.