Market-based vs. Price-based Microgrid Optimal Scheduling

Abstract: An optimal scheduling model for a microgrid participating in the electricity distribution market in interaction with a Distribution Market Operator (DMO) is proposed in this paper. The DMO administers the established electricity market in the distribution level, sets electricity prices, determines the amount of the power exchange among market participants, and interacts with the Independent System Operator (ISO). Considering a predetermined main grid power transfer to the microgrid, the microgrid scheduling problem will aim at balancing the power supply and demand while taking financial objectives into account. Numerical simulations exhibit the application and the effectiveness of the proposed market-based microgrid scheduling model and further investigate merits over a price-based scheme.