Market-based Microgrid Optimal Scheduling

TL;DR

This paper introduces a novel market-based optimal scheduling model for microgrids that interacts with a newly proposed Distribution Market Operator, employing stochastic programming to handle uncertainties in grid-connected and islanded modes.

Contribution

It proposes a new microgrid scheduling framework involving a Distribution Market Operator and uses stochastic programming to manage operational uncertainties.

Findings

Effective scheduling under market interactions demonstrated.

Stochastic model improves reliability and economic performance.

Numerical simulations validate the approach.

Abstract

This paper presents an optimal scheduling model for a microgrid participating in the electricity distribution market in interaction with the Distribution Market Operator (DMO). The DMO is a concept proposed here, which administers the established electricity market in the distribution level, i.e., similar to the role of Independent System Operator (ISO) in the wholesale electricity market, sets electricity prices, determines the amounts of the power exchange between market participators, and interacts with the ISO. Considering a predetermined main grid power transfer to the microgrid, the microgrid scheduling problem will aim at balancing the power supply and demand while taking financial objectives into account. A stochastic programming method is employed to model prevailing uncertainties in the microgrid grid-connected and islanded operations. Numerical simulations exhibit the application and the effectiveness of the proposed market-based microgrid scheduling model.