Cooperative Energy Scheduling for Microgrids under Peak Demand Energy Plans

A cooperative energy scheduling method is proposed that allows joint energy optimization for a group of microgrids to achieve cost savings that the microgrids could not achieve individually. The discussed microgrids may be commercial entities in a distribution network under utility electricity rate...

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Bibliographic Details
Published in:arXiv.org 2020-01
Main Authors: Valibeygi, Amir, de Callafon, Raymond A
Format: Article
Language:English
Subjects:
Algorithms
Charge distribution
Cooperation
Cost control
Demand
Electric power distribution
Electric power grids
Electric rates
Electricity consumption
Game theory
Optimization
Peak load
Scheduling
Time of use electricity pricing
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Summary:A cooperative energy scheduling method is proposed that allows joint energy optimization for a group of microgrids to achieve cost savings that the microgrids could not achieve individually. The discussed microgrids may be commercial entities in a distribution network under utility electricity rate plans comprising both Time of Use (ToU) and peak demand charge. Defining a stable operation as a situation where all microgrids would be willing to participate, it is shown that under such rate plans and in particular due to the peak demand charge, a cost distribution that is seemingly fair does not necessarily result in a stable cooperation. These results are derived in this paper using concepts from cooperative games. It is therefore sought to devise a stable cost distribution algorithm that, while maximizing some measure of fairness among the participating microgrids, ensures they all benefit from their participation. A simple case study is presented that demonstrates fairness and stability aspects of the cooperation.
ISSN:2331-8422