Key energy management issues of setting market clearing price (MCP) in micro-grid scenario

Abstract

Micro grid is an epitome of a macro grid but works in low voltage comprising of various small-distributed energy resources (DERs), energy storage devices, and controllable loads being interfaced through fast acting power electronic devices. Combined heat and power (CHP) produced by DERs are utilized in the local market where Micro Grid operates either in island mode or in grid-connected mode. The CHP mode of operation makes the Micro Grid most efficient and economic. Like deregulation regime in Micro Grid market, multi agent generator providers may be considered to make the Micro Grid market competitive. The reason for competitive electricity market is to serve the consumers at a reduced price. The main purpose of this paper is to analyze and propose the pricing mechanism for Micro Grid energy in the competitive electricity market. Central controller of the Micro Grid (µcc) is the main brain behind all energy management system (EMS) activities, which includes participation in the bidding to settle marketclearing price (MCP). Two important market settlement techniques -Day-ahead and Real-time -have been discussed briefly in this paper. Uniform and Pay-as-bid pricing rules have been discussed separately for electricity pricing fixation in the context of Micro Grid. In this paper marketing strategies of some of the renewable DERs -mainly Photovoltaic (PV) and wind generator -have been considered. Wind power is now a potential candidate in non-conventional power generation family. Power available from wind and PV system cost high and is of intermittent in nature. Participation of these two renewable DERs along with Micro turbine, Diesel generator, fuel cells etc. in the bidding for market clearing price (MCP) make the market complex. This paper gives a brief guideline for marketing of PV and wind power. Consumers in the Micro Grid system are categorized as shed-able and non-shed-able according to their priority. How these loads affect demand curve have also been discussed. This paper presents a case study on price determination based on demand and supply side bidding strategies. The impacts of congestion management, market power, carbon taxation, price volatility, etc. on pricing have also been discussed in the context of Micro Grid.

Value Streams in Microgrids: A literature Review

“…Based on these bids, a day-ahead market clearing price is calculated. The real-time market complements the dayahead market, buffers volatility and allows generators that are available but have not been chosen in the day-ahead market with an opportunity to supply [81].…”

Cross-border Power Trading Model for South Asian Regional Power Pool

“…However in case of linear supply and demand functions the bidders get the power depending on their incremental and decremental cost curves. The bidders can be allowed to bid their outputs or demands in the linear form [9,10,16], as shown in Fig. 1.…”

Research of Q-learning Algorithm of Multi-agent in Micro-grid Control System Based on Probability

“…In such a trend is a more effective energy management system -Multi-Agent System is acquired to ensure the reliability and effectiveness of the power system, and the core issue of Multi-Agent Systems is to study its learning algorithm [1,2] . Research in the past 10 years for Multi-Agent Systems learning has become a topic of concern in Multi Agent Systems learning, in the field of multi-agent system learning, the technology of learningreinforcement attracted the attention of many scholars, this is because learning-reinforcement does not require environmental model, and allows multiple Agents to take an interactive approach to learning [3] . This paper introduces the micro-grid control systems in the workflow of each Agent, and then improve the multi-Agent Q-learning algorithm, and finally regard IEEE 9-bus system as a micro-grid system and run an emulation in this system, the simulation results show that when micro-grid power fluctuations occur quickly the algorithm can restore the power to a stable state fast.…”