Distributionally robust multi-stage stochastic programming for mid- and long-term cross-regional power markets

The widespread integration of renewable energy sources (RESs) has presented significant challenges in deregulated power markets. The inherent uncertainty of RES poses challenges for clearing cross-temporal and cross-regional transactions, manifesting as curses of dimensionality and premature converg...

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Main Authors: Yuhan Huang, Tao Ding, Xiaosheng Zhang, Shuhai Feng, Yiding Jin, Yangsheng Sun, Tong Xing
Format: Article
Language:English
Published: Elsevier 2025-09-01
Series:International Journal of Electrical Power & Energy Systems
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S0142061525004983
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author Yuhan Huang
Tao Ding
Xiaosheng Zhang
Shuhai Feng
Yiding Jin
Yangsheng Sun
Tong Xing
author_facet Yuhan Huang
Tao Ding
Xiaosheng Zhang
Shuhai Feng
Yiding Jin
Yangsheng Sun
Tong Xing
author_sort Yuhan Huang
collection DOAJ
description The widespread integration of renewable energy sources (RESs) has presented significant challenges in deregulated power markets. The inherent uncertainty of RES poses challenges for clearing cross-temporal and cross-regional transactions, manifesting as curses of dimensionality and premature convergence in conventional approaches. This paper proposes a distributionally robust multi-stage stochastic programming model for cross-regional power market clearing considering available transfer capacity constraints. The uncertainties from RESs are modeled through distributionally robust formulations circumventing exact probability distributions, while multiple stages are introduced to maintain applicability to mid- and long-term trading. To overcome the premature convergence problem in conventional methods, a distributionally robust stochastic dual dynamic programming algorithm is proposed to give an exact upper bound. To resolve the nested “max–min-max” structure preventing direct dual problem derivation, a 1-norm ambiguity set is employed to reformulate the nested structure into a single “max” structure. Numerical results for a practical power system in Northwestern China demonstrate that the proposed method provides an exact upper bound that avoids premature convergence for better accuracy at the cost of longer computation time.
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issn 0142-0615
language English
publishDate 2025-09-01
publisher Elsevier
record_format Article
series International Journal of Electrical Power & Energy Systems
spelling doaj-art-65b203c87acf45a996f8a82b230c8c952025-08-20T03:03:46ZengElsevierInternational Journal of Electrical Power & Energy Systems0142-06152025-09-0117011095010.1016/j.ijepes.2025.110950Distributionally robust multi-stage stochastic programming for mid- and long-term cross-regional power marketsYuhan Huang0Tao Ding1Xiaosheng Zhang2Shuhai Feng3Yiding Jin4Yangsheng Sun5Tong Xing6State Key Laboratory of Electrical Insulation and Power Equipment, Xi’an Jiaotong University, Xi’an 710049, ChinaState Key Laboratory of Electrical Insulation and Power Equipment, Xi’an Jiaotong University, Xi’an 710049, China; Corresponding author.State Key Laboratory of Electrical Insulation and Power Equipment, Xi’an Jiaotong University, Xi’an 710049, ChinaChina Electric Power Research Institute, Nanjing 210037, ChinaBeijing Power Exchange Center, Beijing 100031, ChinaState Grid Shanghai Municipal Electric Power Company, Shanghai 200120, ChinaBeijing Power Exchange Center, Beijing 100031, ChinaThe widespread integration of renewable energy sources (RESs) has presented significant challenges in deregulated power markets. The inherent uncertainty of RES poses challenges for clearing cross-temporal and cross-regional transactions, manifesting as curses of dimensionality and premature convergence in conventional approaches. This paper proposes a distributionally robust multi-stage stochastic programming model for cross-regional power market clearing considering available transfer capacity constraints. The uncertainties from RESs are modeled through distributionally robust formulations circumventing exact probability distributions, while multiple stages are introduced to maintain applicability to mid- and long-term trading. To overcome the premature convergence problem in conventional methods, a distributionally robust stochastic dual dynamic programming algorithm is proposed to give an exact upper bound. To resolve the nested “max–min-max” structure preventing direct dual problem derivation, a 1-norm ambiguity set is employed to reformulate the nested structure into a single “max” structure. Numerical results for a practical power system in Northwestern China demonstrate that the proposed method provides an exact upper bound that avoids premature convergence for better accuracy at the cost of longer computation time.http://www.sciencedirect.com/science/article/pii/S0142061525004983Cross-regional power marketsAvailable transfer capacityDistributionally robust multi-stage stochastic programmingStochastic dual dynamic programming
spellingShingle Yuhan Huang
Tao Ding
Xiaosheng Zhang
Shuhai Feng
Yiding Jin
Yangsheng Sun
Tong Xing
Distributionally robust multi-stage stochastic programming for mid- and long-term cross-regional power markets
International Journal of Electrical Power & Energy Systems
Cross-regional power markets
Available transfer capacity
Distributionally robust multi-stage stochastic programming
Stochastic dual dynamic programming
title Distributionally robust multi-stage stochastic programming for mid- and long-term cross-regional power markets
title_full Distributionally robust multi-stage stochastic programming for mid- and long-term cross-regional power markets
title_fullStr Distributionally robust multi-stage stochastic programming for mid- and long-term cross-regional power markets
title_full_unstemmed Distributionally robust multi-stage stochastic programming for mid- and long-term cross-regional power markets
title_short Distributionally robust multi-stage stochastic programming for mid- and long-term cross-regional power markets
title_sort distributionally robust multi stage stochastic programming for mid and long term cross regional power markets
topic Cross-regional power markets
Available transfer capacity
Distributionally robust multi-stage stochastic programming
Stochastic dual dynamic programming
url http://www.sciencedirect.com/science/article/pii/S0142061525004983
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