A Community Microgrid Architecture with an Internal Local Market

This work fits in the context of community microgrids, where members of a community can exchange energy and services among themselves, without going through the usual channels of the public electricity grid. We introduce and analyze a framework to operate a community microgrid, and to share the resulting revenues and costs among its members. A market-oriented pricing of energy exchanges within the community is obtained by implementing an internal local market based on the marginal pricing scheme. The market aims at maximizing the social welfare of the community, thanks to the more efficient allocation of resources, the reduction of the peak power to be paid, and the increased amount of reserve, achieved at an aggregate level. A community microgrid operator, acting as a benevolent planner, redistributes revenues and costs among the members, in such a way that the solution achieved by each member within the community is not worse than the solution it would achieve by acting individually. In this way, each member is incentivized to participate in the community on a voluntary basis. The overall framework is formulated in the form of a bilevel model, where the lower level problem clears the market, while the upper level problem plays the role of the community microgrid operator. Numerical results obtained on a real test case implemented in Belgium show around 54% cost savings on a yearly scale for the community, as compared to the case when its members act individually.Comment: 16 pages, 15 figure

Transforming Energy Networks via Peer to Peer Energy Trading: Potential of Game Theoretic Approaches

Peer-to-peer (P2P) energy trading has emerged as a next-generation energy management mechanism for the smart grid that enables each prosumer of the network to participate in energy trading with one another and the grid. This poses a significant challenge in terms of modeling the decision-making process of each participant with conflicting interest and motivating prosumers to participate in energy trading and to cooperate, if necessary, for achieving different energy management goals. Therefore, such decision-making process needs to be built on solid mathematical and signal processing tools that can ensure an efficient operation of the smart grid. This paper provides an overview of the use of game theoretic approaches for P2P energy trading as a feasible and effective means of energy management. As such, we discuss various games and auction theoretic approaches by following a systematic classification to provide information on the importance of game theory for smart energy research. Then, the paper focuses on the P2P energy trading describing its key features and giving an introduction to an existing P2P testbed. Further, the paper zooms into the detail of some specific game and auction theoretic models that have recently been used in P2P energy trading and discusses some important finding of these schemes.Comment: 38 pages, single column, double spac

Demand side management studies on distributed energy resources: A survey

The number of distributed environmentally friendly energy sources and generators necessitates new operating methods and a power network board to preserve or even increase the efficiency and quality of the power supply. Similarly, the growth of matriculates promotes the formation of new institutional systems, in which power and power exchanges become increasingly essential. Because of how an inactive entity traditionally organizes distribution systems, the DG’s connection inevitably changes the system’s qualifications to which it is connected. As a consequence of the Distributed Generation, this presumption is currently legal and non-existent. This article glides on demand side management and analysis on distributed energy resources. Investigation of DSM along with zonal wise classification has been carried out in this survey. Its merits and applications are also presented.Universidad Tecnológica de Bolíva

Control and Communication Protocols that Enable Smart Building Microgrids

Recent communication, computation, and technology advances coupled with climate change concerns have transformed the near future prospects of electricity transmission, and, more notably, distribution systems and microgrids. Distributed resources (wind and solar generation, combined heat and power) and flexible loads (storage, computing, EV, HVAC) make it imperative to increase investment and improve operational efficiency. Commercial and residential buildings, being the largest energy consumption group among flexible loads in microgrids, have the largest potential and flexibility to provide demand side management. Recent advances in networked systems and the anticipated breakthroughs of the Internet of Things will enable significant advances in demand response capabilities of intelligent load network of power-consuming devices such as HVAC components, water heaters, and buildings. In this paper, a new operating framework, called packetized direct load control (PDLC), is proposed based on the notion of quantization of energy demand. This control protocol is built on top of two communication protocols that carry either complete or binary information regarding the operation status of the appliances. We discuss the optimal demand side operation for both protocols and analytically derive the performance differences between the protocols. We propose an optimal reservation strategy for traditional and renewable energy for the PDLC in both day-ahead and real time markets. In the end we discuss the fundamental trade-off between achieving controllability and endowing flexibility

Residential Demand Side Management model, optimization and future perspective: A review

The residential load sector plays a vital role in terms of its impact on overall power balance, stability, and efficient power management. However, the load dynamics of the energy demand of residential users are always nonlinear, uncontrollable, and inelastic concerning power grid regulation and management. The integration of distributed generations (DGs) and advancement of information and communication technology (ICT) even though handles the related issues and challenges up to some extent, till the flexibility, energy management and scheduling with better planning are necessary for the residential sector to achieve better grid stability and efficiency. To address these issues, it is indispensable to analyze the demand-side management (DSM) for the complex residential sector considering various operational constraints, objectives, identifying various factors that affect better planning, scheduling, and management, to project the key features of various approaches and possible future research directions. This review has been done based on the related literature to focus on modeling, optimization methods, major objectives, system operation constraints, dominating factors impacting overall system operation, and possible solutions enhancing residential DSM operation. Gaps in future research and possible prospects have been discussed briefly to give a proper insight into the current implementation of DSM. This extensive review of residential DSM will help all the researchers in this area to innovate better energy management strategies and reduce the effect of system uncertainties, variations, and constraints

Consensus-based approach to peer-to-peer electricity markets with product differentiation

With the sustained deployment of distributed generation capacities and the more proactive role of consumers, power systems and their operation are drifting away from a conventional top-down hierarchical structure. Electricity market structures, however, have not yet embraced that evolution. Respecting the high-dimensional, distributed and dynamic nature of modern power systems would translate to designing peer-to-peer markets or, at least, to using such an underlying decentralized structure to enable a bottom-up approach to future electricity markets. A peer-to-peer market structure based on a Multi-Bilateral Economic Dispatch (MBED) formulation is introduced, allowing for multi-bilateral trading with product differentiation, for instance based on consumer preferences. A Relaxed Consensus+Innovation (RCI) approach is described to solve the MBED in fully decentralized manner. A set of realistic case studies and their analysis allow us showing that such peer-to-peer market structures can effectively yield market outcomes that are different from centralized market structures and optimal in terms of respecting consumers preferences while maximizing social welfare. Additionally, the RCI solving approach allows for a fully decentralized market clearing which converges with a negligible optimality gap, with a limited amount of information being shared.Comment: Accepted for publication in IEEE Transactions on Power System