Energy management considering multiple power markets and microgrid storage

Abstract

The operational cost of a microgrid is significantly influenced by the response of storage systems and the complexities of the power market’s tariff structures. This paper addresses the challenges arising from the coexistence of new market entries and traditional tariffs, which contribute to a complex market environment. To tackle this issue, the paper establishes a microgrid market environment encompassing four types of tariffs. By modeling the response of electric storage and cold storage in a microgrid, the study formulates a non-linear mixed-integer optimization problem. Numerical studies are then conducted to verify the model and analyze market performance. The results reveal a trade-off in behavior among different market entries when optimizing the total cost of microgrid operation. These findings shed light on the complexities and trade-offs involved in microgrid operational cost optimization within a diverse market environment, offering valuable insights for market participants.