Optimal Energy Procurement Strategy for DISCOM: A Case Study

The Electricity Distribution Companies (DISCOMs) in India are subjected to considerable Unscheduled Interchange (UI) penalties based on the deviation between the actual and scheduled power drawn from the grid to strictly maintain the nominal operating conditions in the system according to the Deviation Settlement Mechanism (DSM) guidelines. Therefore, it becomes essential to procure power optimally while incurring minimum penalty due to UI for the better financial viability of the DISCOMs. This study proposes a framework for the optimal procurement of power considering multiple resources while minimising UI for a grid-connected microgrid with non-shiftable or non-curtailable loads. The term virtual load is referred to account for the variations in demand, which represent the UI for each 15-minutes time interval. The problem statement is a nonlinear problem (NLP) formulated in GAMS software and solved using the Solving Constraint Integer Programs (SCIP) solver. Further, a real case study of Gujarat International Finance-Tec City Power Company Limited (GIFT PCL), which supplies power to GIFT City infrastructure, is considered in this study to validate the proposed model.