Optimal Bidding Strategy for Renewable Microgrid with Active Network Management

Seung Wan Kim, Jip Kim, Young Gyu Jin and Yong Tae Yoon
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Seung Wan Kim: Department of Electrical and Computer Engineering, Seoul National University, 1 Gwanak-ro, Gwanak-gu, Seoul 151-742, Korea
Jip Kim: Power System Research Division, Korea Electrical Engineering & Science Research Institute, Bldg. 130, 1 Gwanak-ro, Gwanak-gu, Seoul 151-742, Korea
Young Gyu Jin: Center for Advanced Power & Environmental Technology (APET), The University of Tokyo, 7-3-1 Hongo, Bunkyo-ku, Tokyo 113-8656, Japan
Yong Tae Yoon: Department of Electrical and Computer Engineering, Seoul National University, 1 Gwanak-ro, Gwanak-gu, Seoul 151-742, Korea

Energies, 2016, vol. 9, issue 1, 1-15

Abstract: Active Network Management (ANM) enables a microgrid to optimally dispatch the active/reactive power of its Renewable Distributed Generation (RDG) and Battery Energy Storage System (BESS) units in real time. Thus, a microgrid with high penetration of RDGs can handle their uncertainties and variabilities to achieve the stable operation using ANM. However, the actual power flow in the line connecting the main grid and microgrid may deviate significantly from the day-ahead bids if the bids are determined without consideration of the real-time adjustment through ANM, which will lead to a substantial imbalance cost. Therefore, this study proposes a formulation for obtaining an optimal bidding which reflects the change of power flow in the connecting line by real-time adjustment using ANM. The proposed formulation maximizes the expected profit of the microgrid considering various network and physical constraints. The effectiveness of the proposed bidding strategy is verified through the simulations with a 33-bus test microgrid. The simulation results show that the proposed bidding strategy improves the expected operating profit by reducing the imbalance cost to a greater degree compared to the basic bidding strategy without consideration of ANM.

Keywords: active network management; market participation of microgrid; microgrid operation; renewable microgrid (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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