Hybrid stochastic risk-based approach for a microgrid participating in coupled active and reactive power market

Abstract In recent years, simultaneous participation in energy and ancillary services (AS) markets has been very profitable for microgrids (MG). High penetration of renewable energy sources (RES) in energy supply, due to the uncertainties of these products, increases the need for AS. Also, active and reactive powers are completely related, so in this paper the microgrid simultaneous participation in the active and reactive power and ancillary services (regulation up and regulation down, spinning reserve and non-spinning reserve) markets is modeled considering uncertainty of wind and solar generations. The relation between active and reactive power generation of each generator is calculated based on capability diagrams and mathematical equations. Conditional value at risk (CVaR) is used for risk management, and probability of calling ancillary services is calculated. Uncertainties of wind and solar generations are modeled using their probability distribution functions (PDFs). The ERCOT market simulation is discussed to calculate the participation of each unit in all the mentioned markets based on real-world data.

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