Economic Dispatch for Operating Cost Minimization Under Real-Time Pricing in Droop-Controlled DC Microgrid

Abstract

In this paper, an economic dispatch problem for total operation cost minimization in DC microgrids is formulated. An operating cost is associated with each generator in the microgrid, including the utility grid, combining the cost-efficiency of the system with demand response requirements of the utility. The power flow model is included in the optimization problem, thus the transmission losses can be considered for generation dispatch. By considering the primary (local) control of the grid-forming converters of a microgrid, optimal parameters can be directly applied to this control level, thus achieving higher control accuracy and faster response. The optimization problem is solved in a heuristic method. In order to test the proposed algorithm, a six-bus droop-controlled DC microgrid is used in the case studies. Simulation results show that under variable renewable energy generation, load consumption and electricity prices, the proposed method can successfully reduce the operating cost by dispatching economically the resources in the microgrid.

Online Energy Management Systems for Microgrids: Experimental Validation and Assessment Framework

“…In [23], a control combines fuzzy control with gain scheduling techniques to accomplish both power sharing and energy management. In [24], an economic dispatch problem for total operation cost minimization in DC microgrids is formulated and solved with a heuristic method. However, these approaches do not deepen in the design of the MG-EMS architecture so that it can be adaptable and easily integrated into the power system.…”

Primary and secondary control in DC microgrids: a review

“…As a highest level in the hierarchical architecture, tertiary control conducts power management [10], energy management [11], system optimization [12] economic dispatch [13,14,15]. Hierarchical control is achieved by simultaneously using local converter and digital communication link-based coordinated control, such as novel cloud-based communication platform [16,17], which are separated by at least an order of magnitude in control bandwidth.…”

Probabilistic Optimal Power Dispatch Considering Price-Based Real-Time Demand Response

“…The aims of the evaluation methodology are to prove the peak demand and power consumption in economizing the total operating cost efficiency associated with DR program are extracted in [6]. Real-time Pricing (RTP) is a well-known prospect of DR scheme proposed by the system operator (SO) [7][8]. Aggregated consumers are encouraged to draw attention to reduce their demands accordingly to the required power balance in the system reliability.…”