Coordinated vs Uncoordinated Grid-Connected Microgrids with Different Contract Terms: A Comparative Study

Abstract

The study presents a comparative analysis of the coordinated and uncoordinated grid-connected microgrids with short- and long-term power purchase agreements (PPAs). The development of microgrids with high proportion of renewable energy resources is in the increase due to their tendency to reduce carbon emission and improve operation economy. Wider microgrid inclusion in is expected to support the distribution system operation. Unlike in the uncoordinated planning approach where individual microgrid owner has decision autonomy, the coordinated approach affects the decision-making of the microgrids, and it limits their profitability. The aim of this study is to investigate the effects of planning and operating multiple microgrids having short- and long-term PPAs on distribution system operation, customer energy bill, microgrids' returns on investments and cumulative net-present worth under coordinated and uncoordinated integration approaches. Case studies is performed on a modified IEEE 33 Bus System consisting of three microgrids and a system operator. Simulation results are presented with relevant conclusions to guide microgrid inclusion in the system.