Cost-Based Droop Schemes for Economic Dispatch in Islanded Microgrids

In this paper, cost-based droop schemes are proposed, to minimize the total active power generation cost in an islanded microgrid (MG), while the simplicity and decentralized nature of the droop control are retained. In cost-based droop schemes, the incremental costs of distributed generators (DGs) are embedded into the droop schemes, where the incremental cost is a derivative of the DG cost function with respect to output power. In the steady state, DGs share a single common frequency, and cost-based droop schemes equate incremental costs of DGs, thus minimizing the total active power generation cost, in terms of the equal incremental cost principle. Finally, simulation results in an islanded MG with high a penetration of intermittent renewable energy sources are presented, to demonstrate the effectiveness, as well as plug and play capability of the cost-based droop schemes.