Optimisation framework for the design and operation of open-market urban and remote community microgrids

Abstract

In this article, a new business model considering multiple stakeholders is proposed to develop a framework for third-party investment and future flexible retail electricity market in community microgrids. The proposed two-stage optimisation platform generates opportunities for multiple stakeholders to invest in the design of community microgrids, comprising multiple and different distributed energy resources such as renewable generation units, battery energy storage systems, and micro diesel engines, to minimize daily operational costs of the system. To proliferate the prosumers in retail energy markets as per the Office of Gas and Electricity Markets, United Kingdom, a peer-to-peer energy trading and energy management scheme is also proposed. The optimal sizing of urban and remote community microgrids are determined in stage-1, followed by their optimal operations to minimise the daily operating cost of the community system in stage-2. An improved version of the genetic algorithm is employed to optimise decision variables in both the stages. Different cases are investigated which show the tremendous potential of revenue generation for all stakeholders while effectively optimizing techno-economic operations of microgrids.

Realistic Energy Commitments in Peer-to-Peer Transactive Market with Risk Adjusted Prosumer Welfare Maximization

“…Another body of literature focused on a more liberalized market model, the prosumer consortium, where the technical and economic challenges posed by the active distribution networks were addressed by framing a suitable localized market. Several such frameworks including P2P transactions are put forward based on individual and collective welfare, giving rise to new settlement procedure [12], bidding mechanisms [13] and [14], ancillary services market [15], energy management and optimization algorithm [16] etc. However, [12], [13] and [15] did not consider network feasi-bility, [16] was silent about collective benefits and all of them discarded the conflicting nature of profits.…”

“…Several such frameworks including P2P transactions are put forward based on individual and collective welfare, giving rise to new settlement procedure [12], bidding mechanisms [13] and [14], ancillary services market [15], energy management and optimization algorithm [16] etc. However, [12], [13] and [15] did not consider network feasi-bility, [16] was silent about collective benefits and all of them discarded the conflicting nature of profits. On the other side, there is a moving trend towards decentralized markets with distributed ledger and Blockchain technologies, eliminating the third party for improving security and transparency [17] and [18].…”

“…The use of service charge for a transaction from i th seller to j th buyer is calculated using the Power Transfer Distribution Factor (PTDF) [24] as shown in equation (16).…”

Heuristic Enhanced Evolutionary Algorithm for Community Microgrid Scheduling

“…The aim of the single objective CMG optimization model is to produce a schedule of the microgrid components at minimum total cost. The objective function of the minimization problem can be formulated as in (2).…”

“…Environmental concerns have forced inclusion of clean renewable energy sources (RESs) into the grid [1]. However, the dynamics of the existing network does not allow high penetration of intermittent renewable energy sources [2]. To overcome these problems, the notion of microgrid (MG) came into existence.…”