Modeling Local Energy Market for Energy Management of Multi-Microgrids

The diffusion of distributed energy resources (DERs) has changed the supply-demand balance of power systems. One option to modernize the management of the electricity distribution is to operate the distribution system with interconnected micro-grids (MGs). However, the MG participation in wholesale energy and ancillary service markets creates several challenges in the interactions among the energy market managing entities. To solve these problems, local energy markets (LEMs) have been proposed, where the MGs can trade energy with each other under the management of the LEM manager (LEMM) to minimize their operation cost. In this paper, a local energy market is modeled for multi-MGs (MMGs) to minimize the operation cost of MGs individually and their social welfare in cooperation with each other. In such model, the optimal scheduling of the DERs in each MG is done through the market clearing process. To investigate the effectiveness of the proposed approach, the local energy market is applied to a distribution network with three MGs

Probabilistic Power Distribution Planning Using Multi-Objective Harmony Search Algorithm

In this paper, power distribution planning (PDP) considering distributed generators (DGs) is investigated as a dynamic multi-objective optimization problem. Moreover, Monte Carlo simulation (MCS) is applied to handle the uncertainty in electricity price and load demand. In the proposed model, investment and operation costs, losses and purchased power from the main grid are incorporated in the first objective function, while pollution emission due to DGs and the grid is considered in the second objective function. One of the important advantages of the proposed objective function is a feeder and substation expansion in addition to an optimal placement of DGs. The resulted model is a mixed-integer non-linear one, which is solved using a non-dominated sorting improved harmony search algorithm (NSIHSA). As multi-objective optimization problems do not have a unique solution, to obtain the final optimum solution, fuzzy decision making analysis tagged with planner criteria is applied. To show the effectiveness of the proposed model and its solution, it is applied to a 9-node distribution system

A Risk-Based Decision Framework for the Distribution Company in Mutual Interaction with the Wholesale Day-ahead Market and Microgrids

One of the emergent prospects for active distribution networks ( DN ) is to establish new roles to the distribution company ( DISCO ). The DISCO can act as an aggregator of the resources existing in the DN , also when parts of the network are structured and managed as microgrids ( MG s). The new roles of the DISCO may open the participation of the DISCO as a player trading energy in the wholesale markets, as well as in local energy markets. In this paper, the decision making aspects involving the DISCO are addressed by proposing a bilevel optimization approach in which the DISCO problem is modeled as the upper-level problem and the MG s problems and day-ahead wholesale market clearing process are modeled as the lower-level problems. To include the uncertainty of renewable energy sources, a risk-based two-stage stochastic problem is formulated, in which the DISCO 's risk aversion is modeled by using the conditional value at risk. The resulting nonlinear bilevel model is transformed into a linear single-level one by applying the Karush–Kuhn–Tucker conditions and the duality theory. The effectiveness of the model is shown in the application to the IEEE 33-bus DN connected to the IEEE RTS 24-bus power system

Provision of the Flexible Ramping Product in a microgrid considering the trading strategies in the energy markets

The Flexible Ramping Product (FRP) market has been created as a new ancillary service market for the power systems to manage the severe ramp rates in the net load of the system. Microgrids (MGs) can provide the required ramp service for this market. The MG manager (MGM) sends its bids to the FRP market. The mutual effects of these bids on the MGM trading strategies in the day-ahead (DA) and real-time (RT) energy markets have not been considered in the previous studies. For this purpose, a new formulation is developed in this paper to model the MGM decisions in the FRP market while participating in the DA and RT energy markets. Moreover, the uncertainty on the probability of bid acceptance in the FRP market is modeled in the MGM decision-making problem using the information gap decision theory approach. The results show that changing the MGM strategies in participating in the markets, the objective function of the MGM improves when it participates in the DA energy, FRP and RT energy market, in comparison with the cases in which the MGM does not participate in the FRP market or the RT energy market. Also, the results show how the risk-averse MGM changes its strategies to provide the ramp service for the FRP market to make its decisions robust against the uncertain parameter.(c) 2022 Elsevier Ltd. All rights reserved

Optimal planning in a developing industrial microgrid with sensitive loads

Computer numerical control (CNC) machines are known as sensitive loads in industrial estates. These machines require reliable and qualified electricity in their often long work periods. Supplying these loads with distributed energy resources (DERs) in a microgrid (MG) can be done as an appropriate solution. The aim of this paper is to analyze the implementation potential of a real and developing MG in Shad-Abad industrial estate, Tehran, Iran. Three MG planning objectives are considered including assurance of sustainable and secure operation of CNC machines as sensitive loads, minimizing the costs of MG construction and operation, and using available capacities to penetrate the highest possible renewable energy sources (RESs) which subsequently results in decreasing the air pollutants specially carbon dioxide (CO2). The HOMER (hybrid optimization model for electric renewable) software is used to specify the technical feasibility of MG planning and to select the best plan economically and environmentally. Different scenarios are considered in this regard to determine suitable capacity of production participants, and to assess the MG indices such as the reliability

Modeling the risk-based decisions of the microgrid in day-ahead energy and reserve markets considering stochastic dispatching of electrical and thermal energy storages

In this paper, the electrical and thermal energy management problem of a micro-grid operator (MGO) is addressed under uncertainties aiming at participating in the day-ahead energy and reserve markets. For this purpose, a robust two-stage stochastic model is developed to protect the first stage MGO's decisions, i.e., its bids in the energy and reserve markets, against the uncertainty of the real-time energy market price. This is done through stochastic dispatching of the MG resources which includes the electrical and thermal energy storages and the combined heat and power unit as the second-stage decisions. The results showed that the MGO's expected total cost decreases when it participates in both the energy market and the reserve market in comparison with the case it only participates in the energy market. Also, the risk-based behavior of the MGO showed that increasing the robust parameter decreases the reserve provided for the market and the net power trading with the market. However, the proposed robust two-stage stochastic model leads to a smaller reduction of the MGO's first-stage decisions in the worst case in comparison with the conventional methods, i.e. deterministic and probabilistic ones. This issue proves the effectiveness of the proposed approach to protect the MGO's decisions against the uncertainties.The publication of this article was funded by Qatar National Library

Comprehensive review on the decision-making frameworks referring to the distribution network operation problem in the presence of distributed energy resources and microgrids

The distribution network operation problem (DNOP) is an optimization problem in which the objective function is the total operation cost of the distribution company (Disco), to be minimized considering the technical constraints of the network. In the presence of distributed energy resources (DERs) and microgrids (MGs), new decision makers, including MG and DER operators or managing entities, are emerging and are changing the decision-making framework for distribution systems. To describe the cooperation and competition between the Disco, MG and DER operators, different frameworks and models have been proposed in the literature. Moreover, different computational techniques and metaheuristic algorithms have been used to solve the optimal operation problems. Hence, this paper considers DNOP as one of the timely problems under study and of major interest for future research, presenting a comprehensive review on the decision-making frameworks referring to DNOP in the presence of DERs and MGs, as a new contribution to earlier studies. The focus is set on the comparison among different frameworks characterized by increasingly higher level of participation of the DER managers to the distribution system operation, offering a complementary view with respect to available reviews on similar topics based on technical aspects of the DER connection and integration in MGs and distribution networks, which is noteworthy.© 2020 Elsevier. This manuscript version is made available under the Creative Commons Attribution–NonCommercial–NoDerivatives 4.0 International (CC BY–NC–ND 4.0) license, https://creativecommons.org/licenses/by-nc-nd/4.0/fi=vertaisarvioitu|en=peerReviewed