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

Siyoung Lee, Younggyu Jin, Gilsoo Jang and Yongtae Yoon
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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

Energies, 2016, vol. 9, issue 10, 1-14

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.

Keywords: conditional probability; microgrid operator (MGO); microgrid islanding; operating cost; stochastic modeling (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 (2)

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