A Novel two-stage market-based service restoration method in multi-micro grids distribution networks

The use of microgrids’ (MGs) surplus capacity is a valuable asset for distribution system operators (DSOs), which helps them to have better performance in an outage. In considering the private ownership of most MGs, it is necessary to provide proper mechanisms to compensate for the participation costs of MGs in service restoration programmes. In this study, a novel two-stage market-based framework is proposed to encourage MGs to share their surplus capacity during outages, in which the MGs will be paid proportionally to the amount of their exchanged energy with the distribution network. In the lower stage, MGs offer their hourly bids to the DSO in the form of price–quantity pairs, in which costs of their participation are calculated based on the AC optimal power flow equations. Thus, the operational constraints and power losses costs are incorporated. In the upper stage, for each hour, the DSO determines accepted bids considering technical and economic aspects. Some procedures are suggested to prevent MGs’ monopoly by offering overpriced bids. The advantages and validity of the proposed method are demonstrated in several numerical studies.