Bi-Level Energy Management Optimization in Multi-Area Smart Grids

Optimal energy management in multi area smart grids will increase social welfare, reduce economic costs and environmental pollution. Power management solutions for smart grids include issues such as economical distribution of load, suitable load management, optimized charging and discharging of energy storages, and the availability of renewable resources considering limitation of power exchange in different area, all of which are issues in an intelligent grid, that in this paper has been considered. This paper presents a bi-level mixed integer quadratic programming (MIQP) model for energy management in multi-are smart grids with the aim of reducing economic costs and environmental pollution and increasing social welfare by considering energy storage systems, load management and Renewable resources are presented. In this paper presents a bi-level approach that the upper level is formulated to minimization economic cost and pollution of resource and lower level is presented to maximization social welfare in the form of Karush–Kuhn–Tucker (KKT) conditions. The simulation is implemented in MATLAB with Gurobi solver that the results show that the proposed bi-level model is also an efficient way to optimize energy in multi-area smart grids compared to Pareto front and Weight methods.