Energy Management and Trading in a Smart Microgrid

Distributed Energy Generation (DEG) and Distributed Energy Storage (DES) are finding increasing applications in Demand Side Management (DSM) due to their potentials for grid power system balance and arbitrage opportunities. A grid-connected smart microgrid comprising heterogeneous (active and passive) smart consumers and a large-scale energy storage device is considered in this work. Energy management by each smart entity is carried out by the proposed Microgrid Energy Management - Distributed Optimisation Algorithm (MEM-DOA) installed within the network according to consumer type. Each smart consumer optimises its energy consumption, expenditure and trading for comfort and profit. The proposed model was observed to yield financial benefits, grid reliability and sustainability, reduced investment on peaker plants, reduced Peak-to-Average-Ratio (PAR) demand and associated environmental benefits.