A solution based on fuzzy max-min approach to the bi-level programming model of energy and exiramp procurement in day-ahead market

Abstract

In this paper, we focus on solving the integrated energy and exiramp procurement problem in the day-ahead market. The problem of energy and ramp procurement could be perfectly analyzed through Stackelberg concept because of its hierarchical nature of decision-making process. Such a circumstance was modeled via a bi-level programming in which suppliers acted as leaders and the Independent System Operator (ISO) was the follower. The ISO intended to minimize energy and spinning reserve procurement cost, and the suppliers aimed to maximize their prot. To solve the proposed model, a fuzzy max-min approach was applied to maximizing the utilities of players. The objectives and dynamic o_ers of suppliers, determined with regard to the market clearing prices, were reformulated through fuzzy utility functions. The proposed approach is an effective and simple alternative to the Karush Kuhn Tucker (KKT) method, especially for non-convex problems at lower levels.