Market-based vs. Price-based Microgrid Optimal Scheduling

TL;DR

This paper proposes a market-based optimal scheduling model for microgrids interacting with a Distribution Market Operator, comparing its effectiveness to traditional price-based schemes through numerical simulations.

Contribution

It introduces a novel market-based scheduling approach for microgrids in distribution markets, highlighting advantages over existing price-based methods.

Findings

Market-based scheduling improves economic efficiency.

Numerical results demonstrate better power balance and cost savings.

The model effectively integrates microgrid operations with distribution market dynamics.

Abstract

An optimal scheduling model for a microgrid participating in the electricity distribution market in interaction with a Distribution Market Operator (DMO) is proposed in this paper. The DMO administers the established electricity market in the distribution level, sets electricity prices, determines the amount of the power exchange among market participants, and interacts with the Independent System Operator (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. Numerical simulations exhibit the application and the effectiveness of the proposed market-based microgrid scheduling model and further investigate merits over a price-based scheme.