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Optimal Energy Scheduling and Transaction Mechanism for Multiple Microgrids

Author

Listed:
  • Boram Kim

    (Department of Electronic Engineering, Sogang University, Seoul 04107, Korea)

  • Sunghwan Bae

    (Department of Electronic Engineering, Sogang University, Seoul 04107, Korea)

  • Hongseok Kim

    (Department of Electronic Engineering, Sogang University, Seoul 04107, Korea)

Abstract

In this paper, we propose a framework for optimal energy scheduling combined with a transaction mechanism to enable multiple microgrids to exchange their energy surplus/deficit with others while the distributed networks of microgrids remain secure. Our framework is based on two layers: a distributed network layer and a market layer. In the distributed network layer, we first solve optimal power flow (OPF) using a predictor corrector proximal multiplier algorithm to optimally dispatch diesel generation considering renewable energy and power loss within a microgrid. Then, in the market layer, the agent of microgrid behaves either as a load agent or generator agent so that the auctioneer sets a reasonable transaction price for both agents by using the naive auction-inspired algorithm. Finally, energy surplus/deficit is traded among microgrids at a determined transaction price while the main grid balances the transaction. We implement the proposed mechanism in MATLAB (Matlab Release 15, The MathWorks Inc., Natick, MA, USA) using an optimization solver, CVX. In the case studies, we compare four scenarios depending on whether OPF and/or energy transaction is performed or not. Our results show that the joint consideration of OPF and energy transaction achieves as minimal a cost as the ideal case where all microgrids are combined into a single microgrid (or called grand-microgrid) and OPF is performed. We confirm that, even though microgrids are operated by private owners who are not collaborated, a transaction-based mechanism can mimic the optimal operation of a grand-microgrid in a scalable way.

Suggested Citation

  • 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.
    • Handle: RePEc:gam:jeners:v:10:y:2017:i:4:p:566-:d:96430
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    References listed on IDEAS

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    1. Yohwan Choi & Hongseok Kim, 2016. "Optimal Scheduling of Energy Storage System for Self-Sustainable Base Station Operation Considering Battery Wear-Out Cost," Energies, MDPI, vol. 9(6), pages 1-19, June.
    2. Akhtar Hussain & Van-Hai Bui & Hak-Man Kim, 2016. "Robust Optimization-Based Scheduling of Multi-Microgrids Considering Uncertainties," Energies, MDPI, vol. 9(4), pages 1-21, April.
    3. Nah-Oak Song & Ji-Hye Lee & Hak-Man Kim, 2016. "Optimal Electric and Heat Energy Management of Multi-Microgrids with Sequentially-Coordinated Operations," Energies, MDPI, vol. 9(6), pages 1-18, June.
    4. 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.
    5. Seunghyoung Ryu & Jaekoo Noh & Hongseok Kim, 2016. "Deep Neural Network Based Demand Side Short Term Load Forecasting," Energies, MDPI, vol. 10(1), pages 1-20, December.
    6. Morais, Hugo & Kádár, Péter & Faria, Pedro & Vale, Zita A. & Khodr, H.M., 2010. "Optimal scheduling of a renewable micro-grid in an isolated load area using mixed-integer linear programming," Renewable Energy, Elsevier, vol. 35(1), pages 151-156.
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    Cited by:

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    2. Nizami, Sohrab & Tushar, Wayes & Hossain, M.J. & Yuen, Chau & Saha, Tapan & Poor, H. Vincent, 2022. "Transactive energy for low voltage residential networks: A review," Applied Energy, Elsevier, vol. 323(C).
    3. Yerasyl Amanbek & Aidana Kalakova & Svetlana Zhakiyeva & Korhan Kayisli & Nurkhat Zhakiyev & Daniel Friedrich, 2022. "Distribution Locational Marginal Price Based Transactive Energy Management in Distribution Systems with Smart Prosumers—A Multi-Agent Approach," Energies, MDPI, vol. 15(7), pages 1-18, March.
    4. Zahid Ullah & Arshad & Jawad Ahmad, 2022. "The Development of a Cross-Border Energy Trade Cooperation Model of Interconnected Virtual Power Plants Using Bilateral Contracts," Energies, MDPI, vol. 15(21), pages 1-16, November.
    5. Hafiz Abdul Muqeet & Hafiz Mudassir Munir & Haseeb Javed & Muhammad Shahzad & Mohsin Jamil & Josep M. Guerrero, 2021. "An Energy Management System of Campus Microgrids: State-of-the-Art and Future Challenges," Energies, MDPI, vol. 14(20), pages 1-34, October.
    6. Seongwoo Lee & Joonho Seon & Chanuk Kyeong & Soohyun Kim & Youngghyu Sun & Jinyoung Kim, 2021. "Novel Energy Trading System Based on Deep-Reinforcement Learning in Microgrids," Energies, MDPI, vol. 14(17), pages 1-14, September.
    7. Hong-Chao Gao & Joon-Ho Choi & Sang-Yun Yun & Seon-Ju Ahn, 2020. "A New Power Sharing Scheme of Multiple Microgrids and an Iterative Pairing-Based Scheduling Method," Energies, MDPI, vol. 13(7), pages 1-20, April.

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