Energy and Reserve Market Clearing With Microgrid Aggregators

In this paper, a new multiobjective joint energy and reserve market clearing model is presented, in which the payment cost minimization and the voltage stability maximization are considered as the economic and security objectives, respectively. In the proposed model, microgrid aggregators (MGAs) submit their bids as demands to participate in the day-ahead electricity market. Both pay-at-market clearing price (uniform pricing) and locational marginal price-based settlement mechanisms are employed to determine the payoffs of market participants in the proposed payment cost minimization model, and the outcomes are compared with those of the offer generation cost minimization model. It is shown that the proposed payment cost minimization model leads to a lower consumer payment cost than the offer cost minimization model. A new approach, which is referred to as bi-objective desired solution generator, is introduced to solve the proposed bi-objective problem. It is shown that the desired solution is determined without approximating all efficient solutions, which in turn results in lower processing time and computational burden. A modified IEEE 24-bus reliability test system is used as a test system to verify the effectiveness of the proposed approach.