Modeling the Microgrid Operator Participation in Day-Ahead Energy and Reserve Markets Considering Stochastic Decisions in the Real-Time Market
Salah Bahramara, Pouria Sheikhahmadi, Gianfranco Chicco, Andrea Mazza, Fei Wang, João P. S. Catalào
Abstract
The penetration of the distributed energy resources in the distribution networks is facilitated by the structure of the microgrids (MGs). The MG operator (MGO) can schedule the MG resources to meet the local load and participate in the wholesale markets. In this article, a new model is developed for the MGO participation in the day-ahead (DA) (energy and reserve) and the real-time (RT) energy markets under uncertainties. For this purpose, the effect of the uncertainties of demand and generation from renewable energy sources on the MGO decisions is represented in a two-stage stochastic model. The MGO bids in the DA and RT markets are modeled as the first and the second stage decisions, respectively. Moreover, the information gap decision theory method is used to model the behavior of the MGO to address the uncertainties of the RT energy market price and the probability of calling the reserve. The results show that as the RT price uncertainty radius increases, the energy sold to the RT market decreases/increases in the risk-averse/risk-taker strategy. Furthermore, to manage the uncertainty related to the probability of calling the reserve, the reserve capacity provided by the MGO in the risk-averse and the risk-taker strategies decreases and increases, respectively.