Can microgrids provide a new paradigm for network operation? An evaluation of their technical, commercial and environmental benefits

This paper analyses the potential technical, commercial, and environmental outcomes from different operation strategies of microgeneration units in a Microgrid. Four optimisation options are proposed and discussed. A reasonable compromise of conflicting operational objectives can be achieved when a combined optimization procedure is performed to identify the most economic and environmentally friendly solution without breaching any technical constraint. Thus a coordinated Microgrid operation can provide - apart from the possibility to increase reliability of supply and penetration of microgeneration - clear benefits compared to the case of uncontrolled distributed generation. Numerical results for a typical UK network exemplify the concepts discussed.