Hierarchical Stochastic Frequency Constrained Micro-Market Model for Isolated Microgrids

With the developments of isolated microgrids (IMGs) and prosumers in remote areas, energy trading has emerged as a critical aspect of IMGs. However, the lack of an upstream network and the low inertia of the system may threaten the secure operation of these networks. This paper proposes a Micro-Market
$(\mu \text{M}$
) model for IMGs that includes a precise hierarchical control structure. To address the IMG’s low inertia and high intermittency of renewable energy sources (RES), the proposed
$\mu \text{M}$
manages the active-reactive power and schedules primary and secondary active reserves to maintain the frequency within in a predefined range. Additionally, a bidirectional linearized AC power flow is established to schedule the reactive reserve and the proposed model is formulated as a two-stage stochastic mixed-integer linear problem (MILP) to maximize social welfare (SW) over the next 24 hours. To validate the effectiveness of the proposed model, the
$\mu \text{M}$
is tested on an IMG based on a CIGRE medium-voltage benchmark system, and different operational cases are simulated. The results demonstrate that the proposed model, which takes into account hierarchical control levels and technical issues of the IMG, is a cost-effective way to maximize social welfare while ensuring the secure operation of the IMG.