Strategic Biddings of a Consumer demand in both DA and Balancing Markets in Response to Renewable Energy Integration

This paper proposes strategic biddings for a consumer demand that participates in both the day-ahead and balancing markets. The behavior of is represented by bilevel optimization programming with minimization costs at upper level (UL) subject to co-optimization energy reserve market clearing process lower problem (LL). Using Karush-Kuhn-Tucker (KKT) optimality constraints replace LL problem, model recast into single-level mathematical program equilibrium (MPEC). resulted finally formulated as mixed-integer linear (MILP) using exact linearization technique Fortuny-Amat transformation bilinear terms complementarity constraints, respectively. results demonstrate reduction electricity consumption payment decline social welfare. © 2017 Elsevier Inc. All rights reserved.