Profit-based unit commitment with security constraints and fair allocation of cost saving in industrial microgrids

• Published in: IET science, measurement & technology Vol. 7; no. 6; pp. 315 - 325
• Main Authors: Derakhshandeh, Sayed Yaser, Hamedani Golshan, Mohammad Esmail, Masoum, Mohammad A.S
• Format: Journal Article
• Language: English
• Published: Stevenage The Institution of Engineering and Technology 01.11.2013; The Institution of Engineering & Technology
• Subjects: Cost engineering; cost saving; distributed energy resources; distributed power generation; electric loads; Electric power grids; Factories; fair allocation; game theory; Industrial engineering; industrial microgrids; industrial power systems; Lead (metal); Manufacturing engineering; Plants; power system economics; power system measurement; power system simulation; profitability; profit‐based unit commitment; Security; security constrained UC problem; security constraints; profitability; power system measurement; power system simulation; game theory; industrial power systems; distributed energy resources; distributed power generation; profit-based unit commitment; power system economics; cost saving; industrial microgrids; security constrained UC problem; fair allocation; electric loads; security constraints
• ISSN: 1751-8822; 1751-8830; 1751-8830
• DOI: 10.1049/iet-smt.2013.0044

Unit commitment (UC) in industrial microgrids (IMGs) is an important issue which has not received much attention in the literature. IMGs consist of many factories with distributed energy resources (DERs) and electric loads that heavily rely on combined heat and power systems. This study illustrates that UC in an IMG is not solely a profit-based UC or a security constrained UC (SCUC) problem. Therefore a new profit-based SCUC (PB-SCUC) formulation is proposed for IMGs that includes both microgrid (MG) security and factories constraints while utilising the generators waste heat to fulfill thermal requirements. The MG controller will solve the PB-SCUC problem to minimise the final production cost through maximisation of the profit by selling electricity to the upstream network. As each DER and boiler may have an individual owner, an approach based on game theory is also implemented to fairly allocate cost saving among factories participating in the generation process. Detailed simulation results are presented for an IMG consisting of 12 factories and analysed to show the effectiveness of the proposed approaches.