Performance analysis of microgrid in modern electricity market

Abstract

Modern power system faces lot of operation challenges due to intermittency of renewable energy sources (RESs) and varying load demand. Thus, effective integration of these sources can be done by formation of a microgrid (MG) which have sufficient storage and advanced control provisions. The formation of MG also allows the participation of the consumers and independent power producers along with the conventional power producers in the modern electricity market through competitive bidding processes. Thus, MG operational issues and its role as ancillary service support provider is going to be very crucial in future power system operation. newlineIn this thesis, a solution has been proposed to the dynamic dispatch problem of MG system when operating in hybrid electricity market with intermittent RESs. Incentive based demand response (DR) participation of the consumers in the dispatch process has been studied while operating in bilateral electricity market. Impact of pump storage system has been evaluated on the optimal bidding offers of the MG in the electricity market for different generation scenarios based on power exchange variations, cost of operation, charging and discharging schedules of pumps. Optimum size of the PS unit has been obtained for optimal power bidding offers and for minimization of operational cost of the system. The DR capacities and capabilities of the MG have been used to cater to the frequent load variabilities and sudden changes in the renewable generation. It has been observed that, formation of MG can be an effective way to integrate renewable in to the power system. newline newline