Price Setting of a Microgrid Operator in a Radial Distribution Network

The proliferation of microgrids is rapidly growing into an existing grid due to its advantages like reducing the stress on the main grid and increase the competition in the electricity market. In such a competitive scenario, gaining maximum benefit is essential for both the microgrid aggregator and consumer. To address that paper presents a mathematical framework to schedule the local generating resources like a diesel generator, battery energy storage system (BESS) and price setting to a consumer. The objectives of the aggregator and consumers are complementary to each other. To satisfy both the players an equilibrium problem has formulated. In general, it can be solved by using bi-level programming; this work presents a single-stage framework to meet both the aggregator and consumer requirements without violating the network constraints. And the effect of demand response and uncertainty of random variables like day-ahead electricity price, solar PV, wind power, load demand on the offer price is also studied. The developed framework formulated as a mixed integer non-linear program and test over a 33-bus active radial distribution network.