Microgrid Operations Economics

In this chapter, a model for optimal microgrid operations scheduling considering multi‐period islanding constraints is introduced. A novel islanding criterion was proposed for ensuring the generation adequacy of the microgrid in the islanded mode operations when the unpredicted disconnection from the main grid lasts more than one hour. The proposed criterion reflected the uncertainty in the duration of the main grid disturbance. Benders' decomposition method was employed to decouple the grid‐connected operation and islanded operation problems. Islanding cuts were further utilized to couple these two problems. Mixed‐integer programming was used to model microgrid components, which included loads, generating units, and energy storage systems. The proposed model was analyzed through numerical simulations, where it was shown that the islanding criterion would provide significant reliability benefits while slightly increasing the microgrid's total operation cost.