Distributed control for polygeneration microgrids: A Dynamic Market Mechanism approach

Abstract

This paper develops a Dynamic Market Mechanism (μDMM) to optimally allocate electric and thermal power in a combined heat and power microgrid. The market mechanism is formulated as a receding horizon constrained optimization problem, from which an optimal automated transactive procedure is developed. Its operation is distributed in nature and incorporates the most up-to-date electric and thermal load estimates and renewable generation. The results of the market clearing of the proposed microgrid μDMM are the spot prices and schedules for electric and thermal power in addition to non-binding estimates of future prices and set-points. The performance of the μDMM is illustrated using simulation studies of a Combine Heat and Power (CHP) microgrid model based on the Smart Polygeneration Microgrid (SPM) located on the University of Genova Savona Campus. The results show that the μDMM has the ability to adapt to new information via updated forecasts and improve the performance of microgrid operation compared to a centralized method. This in turn makes the μDMM attractive for use in μEMS (microgrid Energy Management Systems) by allowing new energy resources to be added in a plug and play fashion.