Risk-averse operation of microgrids in distribution systems with price-responsive demands

This paper introduces a decentralized, risk-averse operational framework for interconnected, unbalanced microgrids and the distribution system. Distribution system operation is modeled as a risk-averse optimization problem using conditional value-at-risk measures to enhance robustness against uncert...

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Bibliographic Details
Main Authors: Seyed Saeed Fazlhashemi, Mohammad E. Khodayar, Mostafa Sedighizadeh, Mahdi Khodayar
Format: Article
Language:English
Published: Elsevier 2025-07-01
Series:International Journal of Electrical Power & Energy Systems
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Online Access:http://www.sciencedirect.com/science/article/pii/S0142061525001322
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Summary:This paper introduces a decentralized, risk-averse operational framework for interconnected, unbalanced microgrids and the distribution system. Distribution system operation is modeled as a risk-averse optimization problem using conditional value-at-risk measures to enhance robustness against uncertainties in price-responsive demand bids. Microgrid operations are structured as scenario-based robust optimization problems, capturing the worst-case scenarios for demand and solar PV generation. Non-convex energy management problems within the distribution system and microgrids are reformulated as convex optimization problems using the moment relaxation technique. A decentralized scheme addresses heterogeneous uncertainties in microgrids and the distribution system. The framework is applied to two case studies: a distribution system connected to two microgrids and a modified IEEE 123-bus distribution system connected to four microgrids. The risk-averse optimization solution is compared to that of a stochastic programming approach. For the IEEE 123-bus system, the results show that introducing risk aversion decreases social welfare by 44.63% compared to the risk-neutral solution but improves the conditional value-at-risk by 44.04%. Additionally, the impacts of dispatchable resources, including energy storage and distributed generation, on operation cost, phase balancing, and uncertainty control at the main feeder are examined. It is shown that incorporating a statistical distance metric to regulate power flow at the main feeder decreases social welfare by 6.48%.
ISSN:0142-0615