Demand and Price Fluctuations Effect on Risk and Profit of Single and Clustered Microgrids during COVID-19 Pandemic

TL;DR

This study analyzes how COVID-19-induced demand fluctuations impact the risk and profitability of renewable microgrids, demonstrating that clustering microgrids enhances profits and reduces risks during pandemic conditions.

Contribution

It introduces a mixed integer programming model to compare pre- and during-pandemic energy consumption and evaluates the benefits of microgrid clustering on system risk and profit.

Findings

COVID-19 reduces demand and increases profit in microgrids.

Clustering microgrids significantly boosts profit and reduces operational risk.

Renewable microgrids can adapt to demand changes with trading and clustering strategies.

Abstract

COVID19s widespread distribution is wreaking havoc on peoples lives all over the world. This pandemic has also had a significant impact on energy consumption. Its influence can be seen in the power systems operation and the market as well. The power consumers habits and demand curves have been changed at a breakneck pace. In this work, a one year mixed integer programming (MIP) problem has been developed to compare the power consumption between 2019 and 2020 in the United States as an example regarding the COVID19 pandemic effect in order to better prepare for possible similar future events. 100 percent renewable single microgrids (SMGs) are studied using wind turbines and photovoltaics. Batteries are also employed since it is inevitable when the system uses renewables. Additionally, it is possible for the SMGs to trade power with the main grid as needed. The effect of the SMGs clustering to form the multi microgrids (MMGs) is also considered. In order to investigate the risk of the system during the COVID19 and formation of MMG, downside risk constraints are applied to the proposed model. Furthermore, a stylized short run consumers demand model is proposed, using elasticity and assessed responses regarding the average household consumption for households during on peak and off peak periods. The simulation results show that COVID19 generally reduces the demand, increases the profit of the system, and decreases the economic risk of the power systems operation. Moreover, SMGs clustering to organize MMG dramatically enhances the profit of the system as well as improves the risk level of the system.