Quality-of-Service based Enegy Trading Mechanism for Microgrids in a Distribution Network

Abstract

The ever-increasing demand for more reliable and flexible energy supply for customers has pushed up the Microgrids (MGs) to the center stage in the developments of distribution networks. The integration of the MGs can provide the customers with better service compared with traditional radial-configured distribution networks with a single generation source. Yet, to motivate more and more MGs developer and practitioner to trade with the distribution network and thus, to improve the quality-of-service of energy consumers, a proper mechanism for energy trading is more than necessary. In this paper, we first analyzed the energy-supply cost for an MG, including power generation cost, distribution cost, transaction cost and service cost. Then we proposed a mechanism of energy trading for multiple MGs integrated distribution network, and this mechanism aims at maximizing the overall benefits of the MG. A case study is also provided to demonstrate that the proposed mechanism is effective and can be used to guide the energy trading of MGs with the quality of service for energy supply being taken into consideration.