Strategic bidding of a multi‐carrier microgrid in energy market

Abstract

Microgrid can contribute to the day-ahead market by submitting bids to minimize its costs. The bidding problem is challenging due to various uncertainties. Thus, the present study provides a comprehensive optimal bidding strategy to determine the optimal power bids of a multi-carrier microgrid despite the interdependency of power and gas market prices on the day-ahead and real-time markets. In this work, the stochastic energy bidding in the proposed multi-carrier microgrid is solved via a two-stage procedure to benefit from day-ahead and real-time markets. In the first stage, the operator provides hourly energy bids to the distribution system operator regardless of uncertainty. Then, in the second stage, taking into account the confirmed day-ahead bids, the multi-carrier microgrid operator serves to balance the load in the real-time market stemmed from various uncertain parameters. This problem is solved as mixed-integer linear programming by CPLEX of the GAMS solver. A scenario reduction method is also employed to burden the complexity of the problem. Numerical results show the usefulness of the proposed model.