Centralized Control for Optimizing Microgrids Operation

Microgrids are low-voltage (LV) distribution networks comprising various distributed generators (DGs), storage devices, and controllable loads that can operate either interconnected or isolated from the main distribution grid as a controlled entity. This paper describes the operation of a central controller for microgrids. The controller aims to optimize the operation of the microgrid during interconnected operation, i.e., maximize its value by optimizing the production of the local DGs and power exchanges with the main distribution grid. Two market policies are assumed including demand-side bidding options for controllable loads. The developed optimization algorithms are applied on a typical LV study case network operating under various market policies and assuming realistic spot market prices and DG bids reflecting realistic operational costs. The effects on the microgrid and the distribution network operation are presented and discussed.