Hierarchical energy management mechanisms for an electricity market with microgrids

Abstract

This study addresses a micro-grid electricity market (MGEM) with day-ahead (DA) and real-time market mechanisms integrated. The bidding mechanisms for the market are described in this study, considering the generation cost of different distributed energy resources (DERs), like distributed generator, energy storage system and demand response. Including load and renewable generation forecasting systems and a fuzzy decision supporting system, a hierarchical micro-grid energy management system (MG-EMS) is then proposed to ensure the benefits of involved micro-grid central controller, DER owners and customers. To verify the feasibility of the proposed system, the whole-year historical pricing and load data for New England independent system operator are employed. The numerical results show that the proposed MG-EMS is promising and effective for the operations of MGEM.

Keywords

• power markets
• control engineering computing
• power engineering computing
• load management
• fuzzy set theory
• decision support systems
• demand side management
• demand forecasting
• pricing
• distributed power generation
• power distribution economics
• power distribution control
• power generation control
• power generation economics
• hierarchical energy management mechanisms
• microgrid electricity market
• MGEM
• day-ahead market mechanism
• real-time market mechanism
• bidding mechanisms
• generation cost
• distributed energy resources
• DER
• distributed generator
• energy storage system
• demand response
• load generation forecasting systems
• renewable generation forecasting systems
• fuzzy decision supporting system
• microgrid central controller
• whole-year historical pricing
• load data
• New England independent system operator