Value streams in microgrids: A literature review

Microgrids are an increasingly common component of the evolving electricity grids with the potential to improve local reliability, reduce costs, and increase penetration rates for distributed renewable generation. The additional complexity of microgrids often leads to increased investment costs, creating a barrier for widespread adoption. These costs may result directly from specific needs for islanding detection, protection systems and power quality assurance that would otherwise be avoided in simpler system configurations. However, microgrids also facilitate additional value streams that may make up for their increased costs and improve the economic viability of microgrid deployment. This paper analyses the literature currently available on research relevant to value streams occurring in microgrids that may contribute to offset the increased investment costs. A review on research related to specific microgrid requirements is also presented.

[1]  P. Chiappori,et al.  A Theory of the Allocation of Time " , 2014 .

[2]  H. Shayeghi,et al.  Integrated offering strategy for profit enhancement of distributed resources and demand response in microgrids considering system uncertainties , 2014 .

[3]  Dirk Neumann,et al.  A Market Mechanism for Energy Allocation in Micro-CHP Grids , 2008, Proceedings of the 41st Annual Hawaii International Conference on System Sciences (HICSS 2008).

[4]  Youngsik Kim,et al.  Commercial and research battery technologies for electrical energy storage applications , 2015 .

[5]  R. Hakvoort,et al.  The economic effect of electricity net-metering with solar PV: Consequences for network cost recovery, cross subsidies and policy objectives , 2014 .

[6]  Yan Xu,et al.  Inverter-based microgrid control and stable islanding transition , 2012, 2012 IEEE Energy Conversion Congress and Exposition (ECCE).

[7]  David M. Auslander,et al.  Residential electricity auction with uniform pricing and cost constraints , 2009, 41st North American Power Symposium.

[8]  Canbing Li,et al.  A review of islanding detection methods for microgrid , 2014 .

[9]  J. Oyarzabal,et al.  Management of microgrids in market environment , 2005, 2005 International Conference on Future Power Systems.

[10]  Peter Norvig,et al.  Artificial Intelligence: A Modern Approach , 1995 .

[11]  H. Akagi,et al.  DC microgrid based distribution power generation system , 2004, The 4th International Power Electronics and Motion Control Conference, 2004. IPEMC 2004..

[12]  Victor Sreeram,et al.  A review of coordination strategies and protection schemes for microgrids , 2014 .

[13]  Robert Lasseter,et al.  Smart Distribution: Coupled Microgrids , 2011, Proceedings of the IEEE.

[14]  H. Madsen,et al.  Benefits and challenges of electrical demand response: A critical review , 2014 .

[15]  K. K. Kariuki,et al.  Evaluation of reliability worth and value of lost load , 1996 .

[16]  Yoshihiro Yamamoto,et al.  Pricing electricity from residential photovoltaic systems: A comparison of feed-in tariffs, net metering, and net purchase and sale , 2012 .

[17]  Andreas Sumper,et al.  Experimental evaluation of a real time energy management system for stand-alone microgrids in day-ahead markets , 2013 .

[18]  Goran Andersson,et al.  Value of Lost Load: How much is supply security worth? , 2013, 2013 IEEE Power & Energy Society General Meeting.

[19]  Mehdi Savaghebi,et al.  Autonomous Voltage Unbalance Compensation in an Islanded Droop-Controlled Microgrid , 2013, IEEE Transactions on Industrial Electronics.

[20]  Shrisha Rao,et al.  Simulation and Pricing Mechanism Analysis of a Solar-Powered Electrical Microgrid , 2010, IEEE Systems Journal.

[21]  Guido Carpinelli,et al.  Optimal scheduling of a microgrid with demand response resources , 2014 .

[22]  Sohrab Mirsaeidi,et al.  Progress and problems in micro-grid protection schemes , 2014 .

[23]  Lasantha Gunaruwan Meegahapola,et al.  Microgrid capability diagram: A tool for optimal grid-tied operation , 2015 .

[24]  Pierluigi Siano,et al.  Demand response and smart grids—A survey , 2014 .

[25]  Chi-Keung Woo,et al.  Costs of service disruptions to electricity consumers , 1992 .

[26]  Cai Wei,et al.  Preliminary study on the technical requirements of the grid-connected microgrid , 2011, 2011 4th International Conference on Electric Utility Deregulation and Restructuring and Power Technologies (DRPT).

[27]  Moncef Krarti,et al.  Net metering and its impact on PV program in Tunisia , 2003, 3rd World Conference onPhotovoltaic Energy Conversion, 2003. Proceedings of.

[28]  S. Ali Pourmousavi,et al.  Real-time central demand response for primary frequency regulation in microgrids , 2013, 2013 IEEE PES Innovative Smart Grid Technologies Conference (ISGT).

[29]  A. Oudalov,et al.  Sizing and Optimal Operation of Battery Energy Storage System for Peak Shaving Application , 2007, 2007 IEEE Lausanne Power Tech.

[30]  C. Marnay,et al.  Shape of the microgrid , 2000, 2001 IEEE Power Engineering Society Winter Meeting. Conference Proceedings (Cat. No.01CH37194).

[31]  G. Garrod,et al.  Electricity supply reliability: Estimating the value of lost load , 1997 .

[32]  S. X. Chen,et al.  Multi-Agent System for Distributed Management of Microgrids , 2015, IEEE Transactions on Power Systems.

[33]  R. Belmans,et al.  Impact of residential demand response on power system operation: A Belgian case study , 2014 .

[34]  João Abel Peças Lopes,et al.  Coordinating Storage and Demand Response for Microgrid Emergency Operation , 2013, IEEE Transactions on Smart Grid.

[35]  Chris Marnay,et al.  Microgrid Dispatch for Macrogrid Peak- Demand Mitigation , 2013 .

[36]  Dilip B. Kotak,et al.  Distributed coordination of micro-grids using bilateral contracts , 2004, 2004 IEEE International Conference on Systems, Man and Cybernetics (IEEE Cat. No.04CH37583).

[37]  Iakovos Michailidis,et al.  Intelligent energy and thermal comfort management in grid-connected microgrids with heterogeneous occupancy schedule , 2015 .

[38]  Poh Chiang Loh,et al.  Microgrid power quality enhancement using a three-phase four-wire grid-interfacing compensator , 2004, IEEE Transactions on Industry Applications.

[39]  Marcelo Godoy Simões,et al.  Distributed Intelligent Energy Management System for a Single-Phase High-Frequency AC Microgrid , 2007, IEEE Transactions on Industrial Electronics.

[40]  Paras Mandal,et al.  Demand response for sustainable energy systems: A review, application and implementation strategy , 2015 .

[41]  Manuel Alcázar-Ortega,et al.  Integration of renewable energy in microgrids coordinated with demand response resources: Economic evaluation of a biomass gasification plant by Homer Simulator , 2014 .

[42]  Peter Norvig,et al.  Artificial intelligence - a modern approach, 2nd Edition , 2003, Prentice Hall series in artificial intelligence.

[43]  Mohammad Shahidehpour,et al.  Adaptive Protection System for Microgrids: Protection practices of a functional microgrid system. , 2014, IEEE Electrification Magazine.

[44]  M. Basu,et al.  A review of parallel operation of active power filters in the distributed generation system , 2011, Proceedings of the 2011 14th European Conference on Power Electronics and Applications.

[45]  Paul Parker,et al.  Economic feasibility of residential electricity storage systems in Ontario, Canada considering two policy scenarios , 2015 .

[46]  M.A. Matos,et al.  Economic Analysis of Microgrids Including Reliability Aspects , 2006, 2006 International Conference on Probabilistic Methods Applied to Power Systems.

[47]  Jignesh Solanki,et al.  Market optimization for microgrid with Demand Response model , 2011, 2011 North American Power Symposium.

[48]  Josep M. Guerrero,et al.  Microgrids in active network management – part II: System operation, power quality and protection , 2014 .

[49]  Robert B. Wilson.  Auctions of Shares , 1979 .

[50]  M. D. Nooij,et al.  The value of supply security The cost of power interruptions: Economic input for damage reduction and investment in networks , 2007 .

[51]  Mohammad Bayat,et al.  Coordination of Distributed Energy Resources and Demand Response for Voltage and Frequency Support of MV Microgrids , 2016, IEEE Transactions on Power Systems.

[52]  P.C. Loh,et al.  A grid-interfacing power quality compensator for three-phase three-wire microgrid applications , 2006, 2004 IEEE 35th Annual Power Electronics Specialists Conference (IEEE Cat. No.04CH37551).

[53]  Lukas G. Swan,et al.  Battery storage system for residential electricity peak demand shaving , 2012 .

[54]  Reinhard Madlener,et al.  An auction design for local reserve energy markets , 2013, Decis. Support Syst..

[55]  Prasenjit Basak,et al.  A literature review on integration of distributed energy resources in the perspective of control, protection and stability of microgrid , 2012 .

[56]  Wei Lee Woon,et al.  Optimal Protection Coordination for Microgrids With Grid-Connected and Islanded Capability , 2012 .

[57]  Xiaojie You,et al.  A novel control algorithm for cascade shunt active power filter , 2004, 2004 IEEE 35th Annual Power Electronics Specialists Conference (IEEE Cat. No.04CH37551).

[58]  G. Deconinck,et al.  Agent coordination for supply and demand match in microgrids with auction mechanism , 2008, 2008 First International Conference on Infrastructure Systems and Services: Building Networks for a Brighter Future (INFRA).

[59]  K. Lackner,et al.  Agent-based model for electricity consumption and storage to evaluate economic viability of tariff arbitrage for residential sector demand response , 2014 .

[60]  Tzung-Lin Lee,et al.  Design of a New Cooperative Harmonic Filtering Strategy for Distributed Generation Interface Converters in an Islanding Network , 2007, IEEE Transactions on Power Electronics.

[61]  S.P. Chowdhury,et al.  Key energy management issues of setting market clearing price (MCP) in micro-grid scenario , 2007, 2007 42nd International Universities Power Engineering Conference.

[62]  Reza Iravani,et al.  Potential-Function Based Control of a Microgrid in Islanded and Grid-Connected Modes , 2010, IEEE Transactions on Power Systems.

[63]  B. Lasseter,et al.  Microgrids [distributed power generation] , 2001, 2001 IEEE Power Engineering Society Winter Meeting. Conference Proceedings (Cat. No.01CH37194).

[64]  S. Ali Pourmousavi,et al.  Real-Time Central Demand Response for Primary Frequency Regulation in Microgrids , 2012, IEEE Transactions on Smart Grid.

[65]  Chris Marnay,et al.  A Green Prison: Santa Rita Jail Creeps Towards Zero Net Energy (ZNE) , 2011 .

[66]  K. Lackner,et al.  Smart households: Dispatch strategies and economic analysis of distributed energy storage for residential peak shaving , 2015 .

[67]  Mohammed H. Albadi,et al.  A summary of demand response in electricity markets , 2008 .

[68]  Chris Marnay,et al.  Microgrid Reliability Modeling and Battery Scheduling Using Stochastic Linear Programming , 2013 .

[69]  Peter Cramton,et al.  Why we need to stick with uniform-price auctions in electricity markets , 2007 .

[70]  Hossein Lotfi,et al.  State of the Art in Research on Microgrids: A Review , 2015, IEEE Access.

[71]  Sascha Thorsten Schröder,et al.  Fuel cell based micro-combined heat and power under different policy frameworks – An economic analysis , 2013 .

[72]  J. Aghaei,et al.  Demand response in smart electricity grids equipped with renewable energy sources: A review , 2013 .

[73]  Roy Billinton,et al.  Economic costs of power interruptions: a consistent model and methodology , 2006 .

[74]  Debora Coll-Mayor,et al.  Methodology based on the value of lost load for evaluating economical losses due to disturbances in the power quality , 2012 .

[75]  R. L. Vasquez-Arnez,et al.  Feed-in and net metering tariffs: An assessment for their application on microgrid systems , 2012, 2012 Sixth IEEE/PES Transmission and Distribution: Latin America Conference and Exposition (T&D-LA).

[76]  Shahram Jadid,et al.  Smart microgrid energy and reserve scheduling with demand response using stochastic optimization , 2014 .

[77]  T. Funabashi,et al.  A method of three-phase balancing in microgrid by photovoltaic generation systems , 2008, 2008 13th International Power Electronics and Motion Control Conference.

[78]  Malabika Basu,et al.  Parallel operation of inverters and active power filters in distributed generation system—A review , 2011 .

[79]  Richard D. Tabors,et al.  Uniform Pricing or Pay-as-Bid Pricing: A Dilemma for California and Beyond , 2001 .

[80]  J. Torriti,et al.  A review of the costs and benefits of demand response for electricity in the UK , 2013 .