Day Ahead Energy Management in a Microgrid under Market Imposed Grid Power Transactions

The concept of Distribution Market Operator, which is brought in to reduce the uncertainty component with respect to loads experienced by the Independent System Operator, needs a change in optimization being carried out in Microgrids. Optimization in microgrid which is more practiced as price based, needs be changed to be market based. Catering to the need, the problem of optimization of a microgrid under DMO restricted schedule of its power exchange with utility grid is considered in this paper. A new constraint is formulated to see that the microgrid operator sticks to the DMO imposed schedule of power exchange. The optimization is carried subject to this constraint along with others. The result show that the proposed algorithm is effective is scheduling the internal sources of the microgrid without violating the DMO imposed grid power exchange along with optimizing the cost of generation.