Operation of microgrids with demand side bidding and continuity of supply for critical loads

This paper aims to present a detailed analysis on the impact that demand side bidding (DSB) has on microgrids operation, taking into account variations in market prices, RES production, and seasonal demand for a typical LV network. Additionally, the economic impact of applying adequacy constraints, i.e. request specific part of the microgrid demand to be supplied by local power production, in case of intentional islanding, is estimated. This is essential to achieve seamless transition from interconnected to autonomous operation of microgrids. Two cases are examined: adequacy constraint applied to the whole microgrid demand and only to the critical loads. Moreover, the magnitude and frequency of interruption of critical and noncritical loads, in case of an upstream network fault is calculated. The potential of DSB to reduce operating costs improving at the same time the quality of service to the loads of higher priority is shown. Copyright © 2010 John Wiley & Sons, Ltd.