Closed loop price signal based market operation within Microgrids

Abstract

Within a general Microgrid framework, this paper presents a model to simulate closed loop energy and ancillary services markets operated by a Microgrid Central Controller (MGCC) and to investigate the performance of such a market mechanism in managing disturbances both within and outside the Microgrid cell. The proposed approach can be seen as an alternative to a more traditional control approach in which the central operator optimises the dispatch of all generators taking into account their bids and then instructing them to produce their outputs at the specified prices according to merit order and network constraints. In the alternative approach discussed here, this dispatch decision is dec..