Local Energy Market Strategy based on the Study of Interconnected Microgrids

Abstract

Recently, one of the microgrid developments is interested in the energy trading sector to establish local energy market in the distribution system. To understand the microgrids in the energy market, an energy trading strategy in the local energy market based on the study of interconnected microgrids (IMGs), is presented in this paper. The proposed energy trading strategy is introduced in three process layers, i.e., business layer, information layer, and physical layer. The business layer is the dominant layer. It assigns the amount of energy that IMGs have to trade. Consequently, a decision-making process is essential. This paper then proposes fuzzy logic and arithmetic weight method for the decision-making process to calculate the net market demand profile for IMGs. As a result of the business layer, the MGs have to follow the dispatch profile, called the physical layer. This paper utilizes economic dispatch to minimize generation costs. The interaction between a business operator and the microgrid operators is operated via the information layer. To demonstrate the energy trading strategy, evaluate the decision-making process, and economic dispatch, the simulation in DIgSILENT Powerfactory and MATLAB is developed to present the local energy trading with IMGs. As a result, the strategy shows how IMGs can be participated in the day-ahead market of the local energy market.