Robust bidding strategy for microgrids in joint energy, reserve and regulation markets

As a controllable entity, a microgrid (MG) can provide ancillary service (AS) for the power system operations while satisfying local load demands. For the power system, the grid-friendly nature of the MG can be fully utilized by coordinating various distributed energy resources (DERs). For the MG, it is beneficial to provide both energy and AS to maximize its revenues. In this study, the robust bidding strategy is developed for MGs serving as price-takers in joint energy, reserve and regulation markets. By aggregating and coordinating various DERs, including wind turbines (WTs), photovoltaic panels (PVs), micro-turbines (MTs) and energy storage systems (ESSs), the MG is able to strategically allocate the capacities for energy, reserve and regulation. To address the uncertainties in renewable generation and market prices, a hybrid stochastic/robust optimization (RO) technique is adopted. Case studies based on a MG with various DERs validate the effectiveness of the proposed bidding model and approach.