Optimal Price and Quantity Determination of Retailer Electric Contract and maximizing social welfare in Retail Electrical Power Markets with DG

Retail electrical power marketers, also known as retailers, typically set up contracts with suppliers to secure electricity at fixed prices on the one hand and with end users to meet their load requirements at agreed rates on the other hand. Also high penetration of distributed generation (DG) resource is increasingly observed worldwide. Considering the viewpoint of a retailer, this paper analyzes the problem of setting up contracts on both the supplier and end-user sides to maximize profits while maintaining a minimum operational cost of distribution system. The proposed two-level optimization models can minimize the cost of distribution system with Distributed Generation and maximize the profits of retailers. The numerical simulations are carried out based on an IEEE 33-bus test distribution network. Test results are included to show the performance of the proposed method.

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