Demand response-based dynamic dispatch of microgrid system in hybrid electricity market

Abstract

Purpose Technological development has not only helped in effective integration of renewable sources but also made it possible for consumers to participate in system operation. Different market players are coming up in the electricity market, microgrid being one of them. Thus, this paper aims to investigate consumers’ role in the dispatch of a microgrid system that has a hybrid market structure under varied system conditions. Design/methodology/approach The mathematical model developed has been solved by the CONOPT solver in the GAMS optimization tool. GAMS-MATLAB interfacing is done to obtain solutions. Findings The problem formulated shows the effect of consumers in dispatch and overall operational cost. Consumers’ participation has been proposed through a quadratic cost function. The system operation under pool and bilateral contracts has been investigated. It shows that proper incentives to the consumers can help in reduction and effective management of the demand, carbon emission and overall system operational cost. Originality/value This paper considers the hybrid market structure to find the load dispatch in a microgrid system. The participation of consumers in the microgrid system has been implemented considering variations in wind power, solar power and load. The power exchange between the grid and microgrid system has been modeled showing the contribution of the consumers in system operation.