A tri-level optimization model for utilizing the potential of IoT-based subscribers and electric vehicles in energy and ancillary services markets

This paper presents a tri-level model for the simultaneous management of energy and ancillary services markets between transmission and distribution networks integrated with renewable energy sources, smart homes based on the Internet of Things, and electric vehicles. In the first level of the proposed model, smart homes plan their participation in the energy and regulation markets and send it to the distribution network operator. In the second level, the operators of the distribution networks plan their area according to the programs received from the smart homes and determine their strategy for participation in the energy, reservation and adjustment markets. In the third level, the strategy of distribution networks is sent to the operator of the transmission system so that the final planning of the energy, reservation and adjustment markets can be done according to them. The proposed model is formulated as a mixed integer linear programming problem and solved by GUROBI solver in GAMS. The implementation of the proposed model showed that this model was able to significantly use the potential of subscribers based on the Internet of Things, electric vehicles, storage systems and demand response programs to improve the technical aspects of transmission and distribution networks as well as to improve the economic aspects of energy markets and ancillary services.