Optimal bidding strategy of microgrid with uncertainty of res in day ahead electricity market

Abstract

Microgrid is the most efficient way of integrating renewable generating sources in the low voltage network. This paper proposes a mathematical model for bidding power in low voltage grid connected microgrid system in an electricity market having pump storage plant. The optimization problem has been modeled and simulated using the CONOPT solver in GAMS environment interfaced with MATLAB. The storage units have been used to counter the impact due to uncertainty of the solar power and the load demand. The optimal bidding prices have been obtained for various renewable generating units in case of over and under production situations. Penalty factors have been imposed to manage the power imbalance which also helps in overall reduction of the operational cost. Pumped storage unit has been taken to obtain optimal bidding and minimized operational cost of the system.