Exploring multiple investment strategies for non-utility-owned DGs: A decentralized risked-based approach

• Published in: Applied energy Vol. 326; p. 119936
• Main Authors: Yao, Haotian, Xiang, Yue, Liu, Junyong
• Format: Journal Article
• Language: English
• Published: Elsevier Ltd 15-11-2022
• Subjects: Conditional value-at-risk (CVaR); Decentralized algorithm; Distributed generator planning; Multiple investment strategies; Third-party stakeholders; Multiple investment strategies; Third-party stakeholders; Decentralized algorithm; Distributed generator planning; Conditional value-at-risk (CVaR)
• ISSN: 0306-2619; 1872-9118
• DOI: 10.1016/j.apenergy.2022.119936

•Multiple investment strategies of non-utility-owned DGs are proposed, which account for different DG ownerships, rights of operation and pricing mechanisms between DG investors and DSO.•The RIP due to the probabilistic nature of the RES, load and price as well as the effect of investment strategies on RIP are taken into consideration. The proposed risk-based approach enables DSO to manage the tradeoff between expected profit and RIP flexibly.•In the absence of suitable solution algorithm that considers the autonomous decision-making and privacy protection, an improved ADMM algorithm with self-adaptive parameters is adopted to solve the multi-stakeholders DG planning problem..
The development of distributed generator (DG) and energy market has facilitated the investment in non-utility-owned DGs, leading to the necessity of decentralized optimization and finical risk management due to multiple uncertainties. To cope with these problems, this paper addresses the planning framework of non-utility-owned DGs considering multiple investment strategies, from the perspective of risk and profit. Initially, the autonomous planning and operation strategy (APOS), and leasing planning and operation strategy (LPOS) are proposed, considering the different ownership of DG investment/operation rights and pricing mechanism. Then the DG planning problem is modeled as the independent decision-making stage of multiple DG investors and the global coordination stage of distribution system operator (DSO). Furthermore, in the DSO coordination problem, to accurately model the real-time uncertainties in DGs, load demand and main grid price, the conditional value at risk (CVaR) is adopted to manage the risk in profit (RIP). The effect of multiple investment strategies on the tradeoff between RIP and expected profit is analyzed. The planning problem is solved by a decentralized optimization approach that ensures the privacy protection and autonomous optimization of investors. Finally, results from the case study of the IEEE 33-bus system and IEEE 123-bus system demonstrate the superiority and effectiveness of the proposed method in dealing with the planning problem for multiple DG investors.