Optimization of hybrid solar energy sources/wind turbine systems integrated to utility grids as microgrid (MG) under pool/bilateral/hybrid electricity market using PSO

Abstract This study presents an optimized design of microgrid (MG) in distribution systems with multiple distributed generation (DG) units under different market policies such as pool/hybrid electricity market. Proposed microgrid includes various energy sources such as photovoltaic array and wind turbine with energy storage devices such as battery bank. In this study, microgrid is considered as independent power producer company (IPP) in power system. Price of selling/buying power in on-peak or off-peak for MG, DG and upstream power system (DISCO) under pool/bilateral/hybrid electricity market are different. In this study, particle swarm optimization (PSO) algorithm has been implemented for the optimization of the microgrid cost. The costs include capital cost, replacement cost, operation and maintenance costs and production cost for microgrid and DGs. Then, an objective function to maximize total net present worth (NPW) is presented. PSO approach is employed to obtain the minimum cost of microgrid, during interconnected operation by optimizing the production of local DGs and power exchanges with the main distribution grid. The optimization algorithm is applied to a typical LV network operating under different market policies.

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