Optimal microgrid participation in coupled energy and ancillary services markets considering uncertainties using CVaR approach

Abstract

In recent decades, the use of renewable energy resources (RES) and distributed energy resources (DER) has increased for various reasons (air pollution, government taxes, transmission line losses, etc). The need for ancillary services (AS) / flexibility services has increased due to the uncertainty and intermittency of RES and possible power system stability risks (loss of transmission lines, outage of centralized power plants, etc). AS are operational services provided to the transmission system operator (TSO) to maintain a balance between supply and demand, system security, reliability and flexibility as well as to provide appropriate quality of electrical energy. This paper presents a flexible grid-connected microgrid (MGs) which can increase its profits by simultaneously participating in the energy and AS/flexibility services markets (regulation up and regulation down, spinning reserve and non-spinning reserve) considering different effective variables (uncertainty of energy price, wind speed, solar irradiation and call for deploying AS). In addition, the MG's behaviour with different energy prices is described in the paper.