Joint Chance-constrained Game for Coordinating Renewable Microgrids with Service Delivery Risk: A Bayesian Optimization Approach

TL;DR

This paper develops a Bayesian optimization-based game-theoretic framework to coordinate renewable microgrids, managing uncertain reserve services and minimizing risk of contract breaches using distributionally robust optimization.

Contribution

It introduces a novel Bayesian approach to approximate optimal violation rates in a distributionally robust joint chance-constrained game for microgrid coordination.

Findings

Effective regulation of joint violation rate achieved

Microgrid profits secured in reserve market

Framework tested with up to 14 microgrids in simulation

Abstract

Microgrids incorporate distributed energy resources (DERs) and flexible loads, which can provide energy and reserve services for the main grid. However, due to uncertain renewable generations such as solar power, microgrids might under-deliver reserve services and breach day-ahead contracts in real-time. If multiple microgrids breach their reserve contracts simultaneously, this could lead to a severe grid contingency. This paper designs a distributionally robust joint chance-constrained (DRJCC) game-theoretical framework considering uncertain real-time reserve provisions and the value of lost load (VoLL). Leveraging historical error samples, the reserve bidding strategy of each microgrid is formulated into a two-stage Wasserstein-metrics distribution robust optimization (DRO) model. A JCC is employed to regulate the under-delivered reserve capacity of all microgrids in a non-cooperative game. Considering the unknown correlation among players, a novel Bayesian optimization method approximates the optimal individual violation rates of microgrids and market equilibrium. The proposed game framework with the optimal rates is simulated with up to 14 players in a 30-bus network. Case studies are conducted using the California power market data. The proposed Bayesian method can effectively regulate the joint violation rate of the under-delivered reserve and secure the profit of microgrids in the reserve market.