Comparison of Hour-to-Hour and Hour-Block Energy Trading for Networked Microgrids to Optimize Profits

Abstract

Networked Microgrids are a concept that emerged as a result of growing microgrid deployments in the distribution network. Microgrids in close geo graphical or electrical proximity are coupled to build networked microgrids. Networked microgrids offer coordinated energy management, as well as interaction and energy exchange across microgrids. This increases the relia bility of microgrids and lowers their running costs. Hour-to-hour, depending on generation and load profiles, Time-of-Use pricing, microgrids can manage energy inside the microgrid and participate in energy trading with linked microgrids to reduce costs. Demand response is also utilized in energy management to achieve the above objectives. In contrast to the preceding hour-to-hour strategy, a unique hour-block-based demand response program in Networked Microgrids is suggested in this paper. In this paper, in con trast, to the above hour-to-hour approach a novel hour block-based demand response program in Networked Microgrids is proposed. Each hour block is formed based on generation and load imbalance, the role of Microgrids and the Time-of-Use tariff system. Both techniques are evaluated in terms of time and complexity using the Particle Swarm Optimization method. The economic benefits of individual microgrids and networked microgrids are also compared.