Integrated Microgrid Expansion Planning in Electricity Market With Uncertainty

Abstract

This paper addresses the microgrid expansion planning problem. In such a competitive electricity market, it will assist community microgrid (COMG) companies in deciding whether or not they should invest in microgrid installation. A two-stage stochastic optimization approach is proposed to eliminate the traditional centralized planning, which has led to competition among COMGs, generation companies (GENCOs), and transmission companies (TRANSCOs) for power delivery. The objective of the two-stage stochastic programming model is to maximize the expected revenue from these three power companies while ensuring the cost-effectiveness and reliability of the power system under uncertain factors, such as load growth and component outages. The proposed model is solved by decomposing the planning problem into two stages. The goal of the first stage is to maximize the profits of COMGs, GENCOs, and TRANSCOs; the goal of second stage is to minimize short-term operation cost considering uncertainty to enhance the reliability of the system. Computational results from two IEEE test systems are presented to analyze the effectiveness of the proposed approach.