A two-layer optimization approach for renewable energy management of green microgrid in deregulated power sector

Microgrids with integrated renewable energy sources (RESs) serve as a clean and befitting solution to meet the ever increasing energy demand of countries across the globe. The power supply reliability is maintained through bidirectional power exchange between the main grid and the green microgrid. The exchange of power between the main grid and the microgrid is often challenging if the uncertainty in the availability of renewable sources and the influence of market prices is not taken into consideration. This work considers a green microgrid comprising solar, wind, microturbine, and fuel cell generation, along with a pumped hydrostorage system to cater to uncertainties associated with RES. A novel double layer optimization approach aimed at the social benefit maximization of both the main grid and the green microgrid, with optimal utilization of available RES and strategic management of pumped hydrostorage (in the green microgrid) during real time dispatch, is proposed in this paper. The scheduled power exchange is submitted to the independent system operator in the Day Ahead Schedule Layer based on the bids submitted to the microgrid central controller by load agents and generation agents. The real time dispatch layer deals with the intermittencies in RES by optimally managing the pump hydrostorage system. The developed optimization approach is implemented on a test network simulated as the green microgrid interconnected by an IEEE 30 bus system as the main grid.