Robust optimisation approach for bidding strategy of renewable generation-based microgrid under demand side management

In the restructured electricity market, operator of grid-connected microgrid (MG) tries to supply local load at the lowest cost from alternative energy sources including upstream grid, gas-turbines as local dispatchable units and renewable energy sources (photovoltaic systems and wind-turbines) as w...

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Bibliographic Details
Published in:IET renewable power generation Vol. 11; no. 11; pp. 1446 - 1455
Main Authors: Mehdizadeh, Ali, Taghizadegan, Navid
Format: Journal Article
Language:English
Published: The Institution of Engineering and Technology 13.09.2017
Subjects:
bidding curve
bidding strategy curves
demand response program
demand side management
distributed power generation
DRP
integer programming
linear programming
market operator
MG operator
power markets
procurement energy cost reduction
renewable generation‐based microgrid
Research Article
ROA
robust mixed‐integer linear programming problems
robust optimisation approach
time‐of‐use rate
uncertainty modelling
upstream grid
market operator
demand response program
time-of-use rate
DRP
integer programming
ROA
linear programming
MG operator
distributed power generation
renewable generation-based microgrid
uncertainty modelling
robust mixed-integer linear programming problems
procurement energy cost reduction
bidding curve
robust optimisation approach
upstream grid
bidding strategy curves
demand side management
power markets
ISSN:1752-1416, 1752-1424, 1752-1424
Online Access:Get full text
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Description
Summary:In the restructured electricity market, operator of grid-connected microgrid (MG) tries to supply local load at the lowest cost from alternative energy sources including upstream grid, gas-turbines as local dispatchable units and renewable energy sources (photovoltaic systems and wind-turbines) as well as charge/discharge of energy storage system. In order to purchase power from upstream grid, the bidding curve of MG should be prepared to bid to the market operator. Therefore, this study proposes a robust optimisation approach (ROA) for obtaining optimal bidding strategy of MG. Also, MG operator uses time-of-use rate of demand response program (DRP) to reduce procurement energy cost. For this purpose, ROA is used for uncertainty modelling of upstream grid prices in which the minimum and maximum limits of prices are considered for the uncertainty modelling. The lower and upper bounds of price are consecutively subdivided into sequentially nested subintervals which allow formulating robust mixed-integer linear programming problems. The bidding strategy curves of MG for each time considering DRP are obtained from sufficient data by solving these problems. To show the capability of proposed approach, two cases are studied.
ISSN:1752-1416
1752-1424
1752-1424
DOI:10.1049/iet-rpg.2017.0076