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Optimal Bidding of a Microgrid Based on Probabilistic Analysis of Island Operation

Author

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  • Siyoung Lee

    (Department of Industrial Engineering Institute of Engineering Research, Seoul National University, 1 Gwanak-ro, Gwanak-gu, Seoul 08826, Korea)

  • Younggyu Jin

    (Department of Electrical Engineering, Jeju National University, 102 Jejudaehakno, Jeju-si, Jeju-do 63243, Korea)

  • Gilsoo Jang

    (School of Electrical Engineering, Korea University, 145 Anam-ro, Seongbuk-Gu, Seoul 02841, Korea)

  • Yongtae Yoon

    (Department of Electrical and Computer Engineering, Seoul National University, 1 Gwanak-ro, Gwanak-gu, Seoul 08826, Korea)

Abstract

Island operation of a microgrid increases operation survivability and reliability when there is a large accident in a main grid. However, because a microgrid typically has limited generation capability, a microgrid operator (MGO) has to take the risk of island operation into account in its market participation and generation scheduling to ensure efficient operation. In this paper, a microgrid islanding event is interpreted as a trade suspension of a contract, and a set of islanding rules is presented in the form of a market rule. The risk of island operation is evaluated by modeling the microgrid islanding stochastically using an islanding probability function, which is defined in the form of a conditional probability to reflect the influence of outside conditions. An optimal bidding strategy is obtained for the MGO by formulating and solving an optimization problem to minimize the expected operating cost. The effectiveness of the proposed method was investigated by numerical simulations in which the proposed method and two other methods were applied to the same microgrid. Numerical sensitivity analyses of the coefficients of the islanding probability function were conducted to determine how an MGO copes with changes in outside conditions.

Suggested Citation

  • Siyoung Lee & Younggyu Jin & Gilsoo Jang & Yongtae Yoon, 2016. "Optimal Bidding of a Microgrid Based on Probabilistic Analysis of Island Operation," Energies, MDPI, vol. 9(10), pages 1-14, October.
    • Handle: RePEc:gam:jeners:v:9:y:2016:i:10:p:814-:d:80294
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    References listed on IDEAS

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    1. Kathryn E. Spier & Michael D. Whinston, 1995. "On the Efficiency of Privately Stipulated Damages for Breach of Contract: Entry Barriers, Reliance, and Renegotiation," RAND Journal of Economics, The RAND Corporation, vol. 26(2), pages 180-202, Summer.
    2. Hawkes, A.D. & Leach, M.A., 2009. "Modelling high level system design and unit commitment for a microgrid," Applied Energy, Elsevier, vol. 86(7-8), pages 1253-1265, July.
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    Cited by:

    1. Boram Kim & Sunghwan Bae & Hongseok Kim, 2017. "Optimal Energy Scheduling and Transaction Mechanism for Multiple Microgrids," Energies, MDPI, vol. 10(4), pages 1-17, April.
    2. Pouria Sheikhahmadi & Ramyar Mafakheri & Salah Bahramara & Maziar Yazdani Damavandi & João P. S. Catalão, 2018. "Risk-Based Two-Stage Stochastic Optimization Problem of Micro-Grid Operation with Renewables and Incentive-Based Demand Response Programs," Energies, MDPI, vol. 11(3), pages 1-17, March.

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