Bidding strategy for microgrid in day-ahead market based on hybrid stochastic/robust optimization
Abstract
In this paper, we propose an optimal bidding strategy in the day-ahead market of a microgrid consisting of intermittent distributed generation (DG), storage, dispatchable DG and price responsive loads. The microgrid coordinates the energy consumption or production of its components and trades electricity in both the day-ahead and real-time markets to minimize its operating cost as a single entity. The bidding problem is challenging due to a variety of uncertainties, including power output of intermittent DG, load variation, day-ahead and real-time market prices. A hybrid stochastic/robust optimization model is proposed to minimize the expected net cost, i.e., expected total cost of operation minus total benefit of demand. This formulation can be solved by mixed integer linear programming. The uncertain output of intermittent DG and day-ahead market price are modeled via scenarios based on forecast results, while a robust optimization is proposed to limit the unbalanced power in real-time market taking account of the uncertainty of real-time market price. Numerical simulations on a microgrid consisting of a wind turbine, a PV panel, a fuel cell, a micro-turbine, a diesel generator, a battery and a responsive load show the advantage of stochastic optimization in addition to robust optimization.
- Authors:
-
- Oak Ridge National Lab. (ORNL), Oak Ridge, TN (United States)
- Oak Ridge National Lab. (ORNL), Oak Ridge, TN (United States); University of Tennessee (UTK), Knoxville, TN (United States)
- Publication Date:
- Research Org.:
- Oak Ridge National Laboratory (ORNL), Oak Ridge, TN (United States)
- Sponsoring Org.:
- USDOE
- OSTI Identifier:
- 1265375
- Grant/Contract Number:
- AC05-00OR22725
- Resource Type:
- Accepted Manuscript
- Journal Name:
- IEEE Transactions on Smart Grid
- Additional Journal Information:
- Journal Volume: 7; Journal Issue: 1; Journal ID: ISSN 1949-3053
- Country of Publication:
- United States
- Language:
- English
- Subject:
- 32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION; 29 ENERGY PLANNING, POLICY, AND ECONOMY; Microgrid; stochastic optimization; robust optimization; uncertainty; market bidding strategy; Mixed Integer Linear Programming (MILP)
Citation Formats
Liu, Guodong, Xu, Yan, and Tomsovic, Kevin. Bidding strategy for microgrid in day-ahead market based on hybrid stochastic/robust optimization. United States: N. p., 2016.
Web. doi:10.1109/TSG.2015.2476669.
Liu, Guodong, Xu, Yan, & Tomsovic, Kevin. Bidding strategy for microgrid in day-ahead market based on hybrid stochastic/robust optimization. United States. https://doi.org/10.1109/TSG.2015.2476669
Liu, Guodong, Xu, Yan, and Tomsovic, Kevin. Fri .
"Bidding strategy for microgrid in day-ahead market based on hybrid stochastic/robust optimization". United States. https://doi.org/10.1109/TSG.2015.2476669. https://www.osti.gov/servlets/purl/1265375.
@article{osti_1265375,
title = {Bidding strategy for microgrid in day-ahead market based on hybrid stochastic/robust optimization},
author = {Liu, Guodong and Xu, Yan and Tomsovic, Kevin},
abstractNote = {In this paper, we propose an optimal bidding strategy in the day-ahead market of a microgrid consisting of intermittent distributed generation (DG), storage, dispatchable DG and price responsive loads. The microgrid coordinates the energy consumption or production of its components and trades electricity in both the day-ahead and real-time markets to minimize its operating cost as a single entity. The bidding problem is challenging due to a variety of uncertainties, including power output of intermittent DG, load variation, day-ahead and real-time market prices. A hybrid stochastic/robust optimization model is proposed to minimize the expected net cost, i.e., expected total cost of operation minus total benefit of demand. This formulation can be solved by mixed integer linear programming. The uncertain output of intermittent DG and day-ahead market price are modeled via scenarios based on forecast results, while a robust optimization is proposed to limit the unbalanced power in real-time market taking account of the uncertainty of real-time market price. Numerical simulations on a microgrid consisting of a wind turbine, a PV panel, a fuel cell, a micro-turbine, a diesel generator, a battery and a responsive load show the advantage of stochastic optimization in addition to robust optimization.},
doi = {10.1109/TSG.2015.2476669},
journal = {IEEE Transactions on Smart Grid},
number = 1,
volume = 7,
place = {United States},
year = {Fri Jan 01 00:00:00 EST 2016},
month = {Fri Jan 01 00:00:00 EST 2016}
}
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