This section proposes and analyses a pricing mechanism for Microgrid energy in the competitive electricity market where the Microgrid CC is made to participate in the bidding process to settle the market cleaning price (MCP). Two important market settlement techniques, day-ahead and real-time, are considered with the marketing strategies for renewable distributed generator (DGs), viz. PV and wind generation. The main idea is to determine the MCP for the dispatch by an aggregate of different types of DGs to an aggregate of different types of consumers. These consumers are categorised as sheddable loads and uninterruptible loads.

Chapter Contents:

• F.1 Proposed market structure for Microgrid participation
• F.2 Bidding procedure
• F.3 Rules of MCP
• F.4 Formulation of MCP
• F.4.1 Single-side bid market
• F.4.2 Double-side bid market
• F.5 Case study
• F.5.1 Case 1: Linear supply bid with fixed demand (i.e. single-sided bid market)
• F.5.2 Case 2: Linear supply bid with linear demand bid (i.e. double-sided bid market)
• F.6 Impacts on electricity market

Inspec keywords: power distribution economics; power markets; distributed power generation; power generation dispatch; pricing

Other keywords: DG system; PV system; market settlement technique; competitive electricity market; real-time technique; microgrid power scenario; uninterruptible loads; day-ahead technique; sheddable loads; wind generation; renewable distributed generator; market clearing price; MCP; pricing mechanism; bidding process

Subjects: Distributed power generation