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Energy Management Systems for Microgrids

Chapter · March 2021

DOI: 10.1007/978-3-030-59750-4_3

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 3
3. Energy Management Systems for Microgrids

Seyed Mohsen Hashemi

Faculty of Electrical Engineering, Abbaspour School of Engineering
Shahid Beheshti University
Tehran, Iran,
Moh_hashemi@sbu.ac.ir

Vahid Vahidinasab
Faculty of Electrical Engineering, Abbaspour School of Engineering
Shahid Beheshti University
Tehran, Iran,
v_vahidinasab@sbu.ac.ir

1
3.1. Introduction
Increasing use of the small-scale generation resources and energy storage in the distribution
networks and close to the end-users has led to several technical and economic advantages.
Microgrids (MGs) provide a systematic approach for operating an energy system with these
features. A strong Energy management system (EMS) enables the MG to monitor and
control the resources in the time steps near the real operation time. The EMS of an MG can
be introduced as an integrated software and hardware system that bring a decision support
system for the MGs’ operator in which all of the tasks of monitoring, decision making and
controls could be done using it.
Furthermore, it determines how to exchange energy with the main grid considering the
operational constraints and the system conditions such as load consumption, electricity
market price, generation capability of the units and the stored energy of the energy storage
systems. In addition to the normal operation state, EMS should be attentive to the critical
conditions of the contingencies. For this purpose, security constraints are considered in the
mathematical model of the MG’s operation using the frequency-related constraints.
3.2. An overview of the EMS of the MGs
The EMS of an MG enables different functionalities such as:
- Monitoring of the MG in different conditions;
- Analyzing the system’s condition in different operational states;
- Ability to deal with various threats;
- Making quick decisions in critical situations;
- Performing control actions;
Different input signals are provided for an EMS and are analyzed through its computational
core. The output results or decisions can be used either for the assessment of system
conditions through the graphical reports or be automatically sent to the different agents as
the dispatching orders. EMS has a critical function in real-time control, where the input
data has high variability and in such condition, it would be impossible for manual control
to handle the system. As indicated in Fig. 3.1, an MG has multiple interactions with
different agents that should be handled by the EMS.

2
 Renewable energy resources
Weather Energy
forecast market

Main grid

Microgrid
Central
Electric Vehicles

Controller

Smart homes Energy storage systems

Information and
communication flow
Energy flow

Fig. 3.1: Structure of a typical MG [1]

As previously mentioned, EMS has three tasks of monitoring, decision making, and control
that are indicated in Fig. 3.2. they will be analyzed at the following subsections.
3.3. Monitoring system
The monitoring system of EMS provides a detailed and comprehensive picture of the
microgrid at any time. This information includes the status and performance of switches,
lines and transformers. As well as the output power of DGs, the output power of storages
and their state of charge (SOC), available fuel of the Micro turbines (MT), and the
information of the reactors and capacitors of the network. This information is gathered by
the meters and sensors and are sent to EMS by the remote terminal units (RTU) through
the communication infrastructure.
3.4. Control system
EMS controls the MG in different manners. They are determined considering the
complexity and importance of the MG’s procedures. In some cases, the automatic control
is applied in which EMS directly controls the components. For example, in the MGs
equipped with the self-healing strategies, locating and isolating of the fault and restoring
the system are automatically performed. Another control scheme is the supervisory control
in which the system operator can directly open or close the switches by the EMS, if needed.
In cases which there is not remote access to the components, the manual control is used in
which the system operator calls the plant operator to close or open the switches.

3
 EMS
Decision making system
Assessment tools
Monitoring system

Network/component Remedial action

Security assessment State estimation

Control system
modeler system

Load forecast/ Short circuit Uncertainty

Load flow
estimation calculation assessment

Optimization tools
Network
Unit commitment Economic dispatch Optimal power flow
reconfiguration

Decision making
under uncertainty

Restoration tools

FLISR

MG
Fig. 3.2: General structure of EMS in MG

3.5. Decision making system

Decision making can be considered as the most valuable feature of the EMS. It enables the
EMS with capabilities of the assessment, optimization and restoration of the MG. they will
be analyzed at the following subsections.
3.5.1.Assessment tools
Assessment tools enable the operator to find out about the MGs condition in the current
operation regim or any possible operation scenario. These tools are presented at the
following.

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 3.5.1.1.Network and component modeler
An important tool including the mathematical model of the system components’ behaviors.
With extension of the MG by addition of the new components, it provides capability of the
mathematical modeling.

3.5.1.2.Security assessment tool

This tool empowers the system operator to assess the system condition in different
contingencies, in order to identify the most critical contingencies. According to the low
inertia of MGs, this tool considers the dynamic aspects of the contingencies such as the
frequency deviation. Sudden islanding is usually considered as the contingency of the
MGs. In addition, in the isolated MGs, EMS considers events such as the resource outage
that affect the dynamic variables of the system.

3.5.1.3.Remedial action scheduling tool

Using this tool, the system operator can deal with the system’s contingencies. That provides
solutions such as system reconfiguration, generation unit startup, etc. Some of the demand
response programs such as emergency demand response program (EDRP) are the valuable
resources to provide the remedial actions. Response rate of the mentioned resources is an
important factor in MGs.

3.5.1.4.State estimation
A useful tool to estimate the state variables of the system by the limited number of the
metered data.

3.5.1.5.Load forecast/estimation
This tool uses the current load consumption, the historical data and the forecasted weather
condition to determine the load consumption in the next hours or minutes. Also, it
approximately calculates the load of the downstream buses of the metered transformers.
This capability is based on the load pattern of the different load groups.

3.5.1.6.Load flow
Using this tool, system operator will be able to calculate the line flows and bus voltage of
the network in different configurations or load levels.

3.5.1.7.Short circuit calculation

This tool calculates the short circuit current of the circuit breakers and switches and
compares with their allowed values.

5
 3.5.1.8.Uncertainty assessment
This tool studies the uncertain parameters such as renewable power generation, and
proposes an uncertainty model for them. For example, in form of the some of scenarios and
their probabilities. As well as, it provides scenario generation and scenario reduction tools.
3.5.2.Optimization tools
Decision making in MGs is a complex process that requires a systematic approach. Because
there are different resources and strategies to supply the load. Depend on the operation
strategy and considering different economic and technical aspects, the MG’s operator
requires an optimization tool that provides different applications as will be expressed at the
following.

3.5.2.1.Unit commitment
An optimization model to determine the online generation units in the operation horizon.
Usually, it considers the economic objectives and includes the technical properties of
different generation units and storages.

3.5.2.2.Economic dispatch
This optimization module determines the optimal output power of the online resources
using the linear models that can be solved very fast.

3.5.2.3.Optimal power flow

An optimization tool with different technical or economic objectives including the network
constraints. Loss minimization, cost minimization and profit maximization can be different
objectives of the OPF module.

3.5.2.4.Network reconfiguration tool

This tool determines the best supplying path of the loads in different viewpoints. Although
the network is designed in a mesh structure this module opens or closes the switches to
achieve a radial structure with low power loss or high resiliency. The other objectives can
be considered for reconfiguration such as sharing the load between different lines.

3.5.2.5.Decision making under uncertainty

This tool is able to provide different decision-making methods considering uncertainty.
The system operator applies each of these methods based on the uncertainty model of the
parameters. This module includes different methods of stochastic programming, robust
optimization, information gap decision theory, etc.
3.5.3.Restoration tools
This tool empowers the system operator to deal with system faults. Locating and isolation
of the network faults are two important tasks that can be performed in the automatic or
manual manners. As well as, the interrupted loads should be restored fast. In the MGs

6
equipped with the smart meters and switches, the process of finding the fault location,
isolation, and system restoration (FLISR) is automatically performed.
3.6. Interaction with other systems
EMS interacts with the other systems in order to perform its mentioned functionalities.
These systems are introduced at the following.
3.6.4.Distribution management system (DMS)
This system manages the main distribution grid in a similar manner to the EMS.
Information such as the scheduled outage of microgrid’s connecting feeder can be received
from DMS. In this condition, EMS should prepare the MG for the islanded mode operation.
3.6.5.Advanced metering infrastructure (AMI)
AMI interacts with EMS by providing different facilities such as smart meters, two-way
communication infrastructure and other data gathering and transmission facilities to
interact with EMS in real-time operation.
3.6.6.Outage management system (OMS)
In OMS, data of the components’ outage and load interruption are collected and analyzed
based on different data resources such as customer information system (CIS). The outage’s
information such as fault location, duration of the load interruption, and the number of the
affected customers are determined in OMS.
3.6.7.Maintenance scheduling system.
This system schedules the preventive maintenance of the lines, transformers, generation
resources, and the storages, leading to their planned outages. EMS considers these
schedules in its scheduling procedure.
3.6.8.Weather forecasting system
This system forecasts the data such as environmental temperature and wind speed that are
used in EMS to determine the load consumption and the power generation of renewable
resources in the next hours or minutes.
3.6.9.Electricity market
EMS can participate in the electricity market as a buyer or seller to determine its energy
exchange with the main grid. As well as, EMS can be a player of the ancillary services
market by providing the reserve capacity.
3.6.10.Bid/offer interface
Using this system, generation resources and consumers can declare the supply and demand
curves indicating their cost function or price sensitivity.

7
 Distribution Outage
management management
system system

EMS
Advanced Maintenance
Decision
metering Monitoring Control scheduling
making
infrastructure system

Weather
Bid/offer Electricity
forecasting
interface market
system
Fig. 3.3: Interaction of EMS with other systems

Although different aspects of the EMS were previously analyzed, the next sections will
focus on EMS functionality in short-term scheduling of MG, in which EMS
dispatches/commits the existing resources for the next minutes/hours in order to supply the
load in the most economic manner. Hereinafter, we mean EMS a decision-making module
that considers different technical and economic aspects to schedule the resources.
3.7. Centralized and decentralized energy management
Generally, an EMS can be implemented in centralized and decentralized ways. Different
local controllers are used in both of these methods. In a centralized manner, a
computational core sends the dispatching commands to the local controllers to operate
different components. In return, in a decentralized structure, the local controllers are
intelligent agents analyzing the conditions to dispatch their associated components. The
centralized manner applies optimization procedures using different gathered information
to economically operate the MG. Unit commitment (UC) and economic dispatch (ED) are
two popular functions of the centralized energy management system which are applied in
different time scales. In order to reduce the effect of uncertainties, scheduling should be
continuously renewed by updating the input data. This procedure can be applied to EMS
as a rolling horizon (RH) strategy [2]. There are different decision-making methods for the
implementation of UC and ED. For instance, they can be considered as the optimization
problems containing continuous or discrete variables [3]–[10]. Also, the machine learning
systems [11], [12] and rule-based systems [13] can be used as the decision-making
strategies. Centralized EMS is appropriate for the real-time application [14] because
different parts of MG are monitored and analyzed in a central agent. In this structure, EMS
should be equipped with a powerful computing unit to process a high amount of input data.
Decentralized energy management has a lower computational burden in which different
agents schedules a part of MG. This method is appropriate for large MGs, where the

8
resources and loads are dispersed and centralized data gathering is impossible or costly. A
multi-agent system (MAS) is one of the important techniques in decentralized decision
making for power management in different time-scales [15], [16]. In MAS, each
component is managed by an agent that makes decisions to achieve its desired goals. The
agent uses its local information and the received data from the other agents. In this method,
the final operation scheme is achieved passing an iterative process. For applying MAS to
real-time scheduling, the convergence speed is a vital factor[17].
3.8. The necessity of EMS in the scheduling of MG
With the advancement of technology and the rise of the smart grid concept, MGs have
become more and more popular. MG is a small power system that supplies loads using
different distributed energy resources (DER). Besides, there are advanced monitoring and
control facilities. Distinguishing features of the MGs are as follows:
- These power systems contain different distributed generation (DG) technologies.
- The number of end-users and energy resources of the MGs are very lower than that
of the bulk power systems. Therefore, each consumer has a higher impact on the
system’s load, and the system condition is so variable.
- MG’s inertia constant is very low. The bulk power systems containing many
resources and loads have high inertia constant. So, sudden outage of the lines or
generators has no significant impact on the system frequency. However, the MGs
having low inertia are very vulnerable to disturbances.
- Having the radial structure, MGs are so vulnerable against the line outages. Bulk
power systems have a circular structure and supply the load points from different
paths. On the other hand, MGs’ access to the resources is reduced in the line outage
conditions.
- Considering the appropriate access to the end-users, MGs are capable to exercise
different control actions based on the load’s properties.
According to the mentioned properties, only a powerful EMS can operate the MG
efficiently and reliably.
3.9. EMS functions in the MG scheduling
EMS is the main decision module of the MG scheduling the resources to serve the loads
and exchange the energy with the main grid based on several input parameters indicating
the MG’s condition. Fig. 3.4 presents the inputs and outputs of the EMS. Some of these
input data such as network configuration and technical properties of the resources are about
constant during the scheduling horizon. On the other hand, load, electricity market price,
and the renewables’ power generation are rapidly changing during the operation horizon.

9
 Input data
Technical properties of
resources

Electricity market price

Load forecast
Power generation forecast
Cost minimization, Profit maximization
of the renewable resources
Power generation cost of
the resources
Internal network topology
Optimization module of EMS Scheduling decisions
Output power of generation
Operation strategies: resources
Charge/discharge power of energy
Constraints: storages
Technical constraints of components,
Reliability constraints Consumption scheduling of the
controllable loads

System operation strategy

System operation horizon

Fig. 3.4: The structure of MG scheduling by EMS

Example3.1: A simple MG containing two MTs (with the capacity of 10MW) and a
photovoltaic (PV) unit (with an installed capacity of 5 MW) is depicted in Fig. 3.5. as
indicated in Fig. 3.6.a, EMS schedules the resources to serve the load during a 24-hours
horizon aiming the minimum operation cost. The operation cost of MTs is 5 (cent/kWh)
and PV’s generation cost is about 0. Also, the hourly price forecast of the electricity market
and the forecasted power generation of the PV unit are respectively indicated in Fig. 3.6.b-
c. As can be observed, the PV unit is operated in its maximum available capacity during
the hours 8-21. During the hours 1-11 all of the consumption demand is supplied by the
main grid and both of the MTs are off. By increasing the electricity market price beyond
the 5 cents/kWh after the 12:00, MTs are started to supply the load.
Main grid

Microgrid

PV MT2 MT1

Fig. 3.5: A simple MG

10
 (a)

(b)

(c)

Fig. 3.6: The inputs and outputs of EMS in Example3.1: a) Power generation scheduling. b) Generation
cost of MTs and the electricity market price. c) Forecasted power generation of the PV units.

It was a very simple example showing the function of EMS, and it may not be so
complicated to schedule the MG without the EMS, in this example. However, by increasing
the number of resources (generation and storage units) and consumers, considering the
network constraints and need to fast decisions near the real operation time, the presence of
a strong EMS will be essential. In the following, EMS functions will be analyzed in the
aspects of the planning hierarchy and operation strategies.
3.9.11.Microgrid’s hierarchical scheduling
EMS schedules the MG using forecasted data of the loads and power generation of the
renewable generation units. According to the variable condition of the system during the
operation horizon, results of the hour-ahead scheduling (HAS) such as 24-hour scheduling
of the Example3.1, are not valid for the real-time system operation. Therefore, EMS should
rerun an optimum scheduling problem near the real operation time, based on the results of
the HAS and using the updated input data. Indeed, a hierarchical scheduling framework is
needed that firstly applies HAS over the hours of the operation horizon and then uses real-
time scheduling (RTS) module for energy management within the small time-steps near
the real operation time. Although RTS as the latest operational planning of the system has
a significant role in the system operation procedure it still needs the HAS for the following
reasons:
• Some of the decision variables should be inherently considered in the HAS problem
and they cannot be determined in real-time scheduling. For example, scheduling of
shiftable loads should be performed considering the whole operation horizon[18].

11
 Also, the state of charge (SOC) of the energy storages should be determined
considering the whole operation horizon [19].
• Repeated start and shut down of microturbines in the small time-steps is not desired
and amortizes them. Therefore, the status of the microturbine is determined in the
HAS and is not changed in RTS.
• RTS should be fast. Because it is run repeatedly near the real operation time. HAS
can provide an initial solution for the optimization model of the RTS module that
reduces the time of solving the problem. Also, to further reduce the problem’s
solving time, some of the decision variables can be fixed into the values calculated
by HAS.
Generally, the module of HAS can be hourly run for the next hours up to end of operation
horizon, applying the updated data, as indicated in Fig. 3.7. Then, the results are applied to
the RTS which is repeatedly run in 5-minute time steps. Although the RTS schedules the
MG only for the next time-steps to the end of the current hour it indirectly considers the
system’s forecasted condition of the next hours through applying the results of the latest
HAS problem.

HAS1
HAS2
. . . . . .
MG scheduling

HASk
by EMS

RTSk,m
RTS2,m
RTS1,m

RTS2,2
RTS1,2

RTSk,2

... ... ...

RTSk,1
RTS1,1

RTS2,1
Updating the

hk+1 h24
forecasted
input data

h1 h2 h3 hk
... ... ... . . .

Fig. 3.7: Hierarchical scheduling of MG in EMS

Example3.2: Near the real operation time, the electricity market price is determined by the
real-time market. It deviates from the forecasted values. This deviation can be modelled by
the Normal probability distribution. Fig. 3.8 indicates the real-time market prices in the 15-
minute time-steps. Without the HAS, on/off status of the MTs should be determined in
RTS. In this condition, severe price fluctuations can result in the start or shut down of the

12
MTs, as indicated in Fig. 3.8. As a result, EMS should benefit from both HAS and RTS
modules to appropriately schedule the MG.

Fig. 3.8: The inefficiency of RTS to determine the on/off status of MTs.

3.9.12.System operation strategies

Different operation strategies can be considered in the EMS, such as [1]: operational and
maintenance cost of resources, energy transaction cost, battery degradation cost [20],
outages and interruption cost, demand response incentives, losses cost, load shedding
penalty cost, emission cost and Levelized cost of renewable energy resources. As well, the
EMS may include technical constraints such as electrical network loading, energy
balancing, output limits of the renewable energy resources, demand response, reactive
power support, reliability, and physical limits of resources. In summary, the operation
strategies can be categorized into the economic strategies and technical strategies that will
be presented in the following.

3.9.12.1.Economic aspects
Minimizing the total operation cost or maximizing the profit are the most popular economic
objectives of EMS. When the MG is connected to the main grid, it can export its surplus
power to the main grid to make a profit. In return, it can import power from the main grid
to supply internal consumers. There is an economic competition between the internal
resources of the MG and the upstream network to meet the consumers. The electricity
market price will be a vital input parameter of the decision making, and a decision with the
higher profit is the best choice in this condition. In a market-oriented decision making,
EMS generates the price bids to participate in the power market [13]. MG’s profitability

13
is not constrained to the energy exchange with the main grid. According to the fast response
resources and the controllable loads, EMS can make a profit by providing reserve capacity
for the main grid [21]. For the isolated MGs, cost minimization is the main economic
strategy.
Example3.3: In Example3.2, When EMS operates the MG for the profit maximization, the
scheduling outputs will be different from the cost minimization strategy, as indicated in
Fig. 3.9. As can be observed, MG exports energy to the main grid in some hours. When the
market price is higher than the generation cost of MTs and there is surplus generation
capacity.

Exported power
to the main grid

Fig. 3.9: Power generation scheduling of a profit maximizer EMS

3.9.12.2.Technical aspects
Aside from the economic aspects, there are some technical criteria for the system operation
problem. Maximizing the reliability indices of the system and minimizing the network loss
or fuel consumption [22] are important technical decision strategies. The two later
strategies may be in line with the cost minimization or profit maximization. While the
reliability maximization may be against the cost/profit-oriented decisions. Suppose a
sudden contingency that leads to the load shedding. Considering the main task of the power
system that is supplying the load, the system operation strategy is to minimize the load
shedding or to maximize the amount of the restored loads. In fact, in the contingency
condition, minimum cost or maximum profit is not considered by the MG’s operator.
Although the MGs are operated in the radial structure, they are designed in the mesh
structure, using the normally open and normally closed switches. In some scheduling
problems, system reconfiguration variables are determined to minimize the system loss
[23]. As well as, reconfiguration can be applied for the reliability or resiliency goals. For
example, in some of isolated MGs such as the electric ships, EMS should select the best
supplying path of the loads during the critical condition aiming the minimum load
curtailment [24]. As well, EMS may be designed to deal with the physical or cyber-attacks

14
using the system reconfiguration [25]. Fig. 3.10 summarizes the operation strategies of the
EMS.

System operation strategies

Reliability
Cost Profit Technical
and
minimization maximization aspects
Resiliency

v Exporting energy
to main grid
v Operation cost v Providing v Minimizing the v Minimum load
v Maintenance cost ancillary services energy loss shedding.
v Startup/shut for main grid v Minimizing the v Maximum load
down cost v Strategic bidding fuel consumption restoration
to the electricity
markets

Fig. 3.10: System operation strategies of EMS

3.10. Mathematical modelling of different MG’s components

To design and implementation of the EMS, the mathematical models of different elements
of the MG are presented in the following.
3.10.1.Loads
There are different electrical and thermal loads in the MG. Generally, the electrical load
model is expressed by the ZIP model indicated in (3-1) and (3-2) [26]. It means that each
load can be considered as the combination of three load models of constant impedance,
constant current and constant power.
  V 2 V  
P = P0  Z p   + I p   + Pp  , Z p + I p + Pp = 1 (3-1)
  V0   V0  
 
  V 2 V  
Q = Q0  Z q   + I q   + Pq  , Z q + I q + Pq = 1 (3-2)
  V0   V0  
 
The hourly thermal load is generally modelled as a constant energy consumption within an
hour. In terms of controllability, loads are categorized into controllable and uncontrollable
loads. In the controllable loads, the power consumption (P) can be controlled in the range
of (3-3), in which PL is the forecasted power consumption. Equation (3-4) guarantees that
the total power consumption of the load is constant during the operation horizon.
0  P  PL (3-3)

15
 Tn Tn


h=1
Ph =  PL
h=1
h (3-4)

3.10.2.Dispatchable generation resources

Dispatchable generation (DG) units have the main function of energy generation in MG.
Diesel generators and microturbines (MT) that consume natural gas and produce electrical
energy are categorized as the DG units. The generation cost of DGs is a quadratic function
as indicated in (3-5). To linearize the optimization model, this cost function can be replaced
by some of the estimating linear functions [27] as indicated in Fig. 9.
Cg = APg2 + BPg +C (3-5)
Cg

ln

l3

l2

l1

Pg
Fig. 3.11: Cost function of the dispatchable gas-burning generation units.

The startup cost of the generation units is another cost term that is indicated in (3-6).
SCg,t  0,SCg,t  ( u g,t - u g,t-1 ) scg (3-6)
The active and reactive power of the online DGs should be within the allowable range of
(3-7) and (3-8). In these inequalities, u is a binary variable indicating the status of the units.
Pgminu g ,t  Pg ,t  Pgmaxu g ,t (3-7)

Qgminu g ,t  Qg ,t  Qgmaxu g ,t (3-8)

There are ramping limits between the consecutive time intervals as indicated in (3-9)-
(3-14). URg and DRg are respectively the up and down ramping capabilities. z and y are
binary variables respectively showing the start and stop of the units. Also, P0 indicates the
initial power generation of the units at the beginning of the scheduling. The inequalities of
(3-9) and (3-10) are the up-ramping constraints. After starting a unit, its generation should
be fixed to Pmin. As well as, (3-11) and (3-12) are the down ramping constraints. Before
stopping a generation unit its power should be fixed to Pmin.
Pg ,t − Pg ,t −1  (1 − z g ,t )URg + z g ,t Pgmin  t 1 (3-9)
Pg ,t − Pg0  (1 − z g ,t )URg + z g ,t Pgmin  t =1 (3-10)

16
 Pg ,t −1 − Pg ,t  (1 − yg ,t ) DRg + yg ,t Pgmin  t 1 (3-11)
Pg0 − Pg ,t  (1 − yg ,t ) DRg + yg ,t Pgmin  t =1 (3-12)
z g ,t + yg ,t  1  t (3-13)
z g ,t − yg ,t = ug ,t − ug ,t −1  g, t (3-14)
Repeated starting and stopping of DGs in the short time intervals amortizes their
mechanical elements. Hence, minimum up/down time are defined. According to (3-15) and
(3-16), when a unit is started/stopped, its status should not change up to the MUT/MDT
time interval.

T = min MUT , T h − t + 1
T

u
k =1
g ,t + k −1  z g ,t T , (3-15)

 (1 − u ) y T = min MDT , T h − t + 1
T

g ,t + k −1 g ,t T, (3-16)
k =1

3.10.3.Renewable-based units with MPPT

Renewable resources are popular generation units of MG. Their generation cost is very low
and they are categorized as clean energy technologies. Considering their primary energy
resources, they have lower controllability than conventional DGs. For example, the power
generation ability of the PV units is directly related to the solar irradiance and ambient
temperature. In fact, they cannot generate power as much as their installed capacity at any
time. Generally, the wind turbines and PV panels are equipped with the maximum power
point tracking (MPPT) algorithm [28]. MPPT trackers find the best working point of the
mentioned generation units in which the maximum power is produced based on different
environmental conditions. In fact, MPPT trackers improve the controllability of the
renewable resources. Considering P* as the maximum forecasted power of renewable
resources, their actual power generation should be within the specified range of (3-21)

0  Pg ,h  Pg*,h , g  W (3-17)
3.10.4.Energy storages
Energy storages have a vital function in the MGs. They can be operated as generators or
consumers. They are charged in some hours and generate energy in the next hours. By the
storage units it will be possible to benefit from the energy price difference in different
hours. As well as, in the light load condition, they can be charged by the renewable
resources and supply the load at peak hours. SOC of the storages is calculated by (3-18)
which considers the initial stored energy (E0) and charge or discharge power (Psc/d) at
different time intervals. Since a part of the energy is wasted during the power charge or
discharge, energy efficiency ( ηc / d ) is included in (3-18). Energy storage capacity and
charge and discharge rate should be considered as indicated in (3-19) - (3-22).
t t Psstd ,k (3-18)
Est ,t = E 0 st +  stc  Psstc ,k − 
k =1 k =1  d
st

17
 Estmin  Est ,h  Estmax (3-19)

0  Psstc ,h  Psstmax (3-20)

0  Psstd ,h  Psstmax (3-21)

Psst ,h = Psstd ,h − Psstc ,h (3-22)

Operation of energy storage has no significant operational cost.

3.10.5.Reactive power resources
Generally, capacitors and reactors of the electrical network, participate in the voltage
regulation as the reactive power resources. Their reactive power generation should be
constrained by their installed capacities as indicated in (3-23).
Qccmin  Qcc ,t  Qccmax (3-23)

3.10.6.Combined heat and power (CHP) and boiler

CHPs having high energy efficiency are usually installed in the MGs containing the thermal
loads. CHP simultaneously generates electrical and thermal power using natural gas. The
allowed operational zone of the CHPs has been indicated in Fig. 3.12 and (3-28).
Operational constraints presented for DGs can be applied for CHPs. The constraints such
as ramping limitations.
PCHP

Maximum heat
generation

HCHP
Fig. 3.12 Allowable thermal-electrical operating zone of CHP

 CHP
th
PchCHP
,t + CHP
th CHP
H ch ,t   CHP u g ,t
th chp
th 1, 2, 3 (3-24)
In general, the operation cost of the CHP unit is a nonlinear function as indicated in (3-25)
[29].
Cch,t = αchp Pch,t
2
+ βchp Pch,t +αch
h 2
H ch,t h
+ βch H ch,t + λch Pch,t H ch,t +σ ch (3-25)
In [30] a linearized version has been proposed for operation cost of CHP units in which
piecewise linearization has been applied for two variables: output electrical and thermal
power. Besides, some researches [31] use a linear cost function for CHP using an average

18
energy efficiency factor ( ηchCHP ) and gas price ( π gas ) as indicated (3-30)-(3-31). In these
constraints, σ MWh / m3 is a conversion factor that includes the thermal value of the natural gas.
Cch,t = π gas gasch,t
CHP
(3-26)
CHP
gasch,t = σ MWh / m3
(P CHP
ch,t
CHP
+ H ch,t ) (3-27)
CHP
ηch
To increase the flexibility to serve the thermal load, auxiliary boilers are installed beside
the CHP units. Their thermal power generation should be within the allowed range as
indicated in (3-32).

 H bboi (3-28)
,t  ub,t H b,t
boi boi,min boi boi,max
ub,t H b,t
Similar to the operation cost of CHP units in (3-30)-(3-31), the operation cost of the boilers
is modelled by (3-29) and (3-30) in which ub,tboi is a binary variable indicating the on/off
status of boiler.
Cb,t = π gas gasb,t
boi
(3-29)
boi
boi
H b,t (3-30)
gasb,t = σ MWh / m3
ηbboi
3.10.7.Electrical network
Operational variables of the electrical network such as line flows and bus voltages should
be modelled in EMS. They can be computed using the injected power of the buses and the
properties of the lines through the power flow equations. Although methods such as
forward-backward sweep [32] calculate the line flows and bus voltages of the radial
networks in an iterative procedure they are not appropriate for the centralized optimization
models of EMS. Direct current (DC) power flow is a popular method for large power
systems. Although it is a linear and simple method, it is not appropriate for the MGs and
distribution networks in which the R/X ratio is high. On the other hand, using the
conventional AC power flow complicates the optimization problem. Because it contains
the non-convex constraints. At the following, two mathematical models are presented for
the power flow.

3.10.7.1.Second-order cone programming (SOCP)

According to [33], an exact second-order cone relaxation method can be defined for the
convexification of the AC load flow of the radial systems. The convexified AC load flow
equations are indicated in (3-27) - (3-37). The equations (3-31) and (3-32) are respectively
the active and reactive power balance in each bus and (3-33)-(3-34) are the injected active
and reactive power of the buses. According to (3-35), any bus voltage is determined based
on the input power from the upstream bus and its voltage. Equation (3-36) relates the active
and reactive flows to the bus voltage and line currents. In the conventional formulation,
(3-36) is a non-convex equality constraint. In return, the indicated inequality constraint is
convex. This relaxation will be exact, if the mentioned constraint is active, after solving

19
the optimization problem. In these equations, Fnp,t and Fnq,t are active or reactive input
powers of bus n from its upstream line. r and x are respectively the resistance and reactance
of the lines. Pg ,t , Psst ,t and PLn,t are respectively the output active power of generators and
storage units and the energy consumption of the load. As well as Qg ,t , Qcc ,t and QLn,t are
respectively the reactive power generation of the generators and reactive power resources,
and the reactive loads. Vn ,t and I n,t are the bus voltages and line currents that are indicated
in Fig. 3.13.

Connecting point to
the main grid
Fig. 3.13: Line flow and bus voltage

(3-31)
Fnp,t + Pninj,t =  (F
mn
p
m ,t + rm m ,t ), Fnp=0,t = 0

(3-32)
Fnq,t + Qninj,t =  (F
mn
q
m ,t + xm m ,t ), Fnq=0,t = 0

(3-33)
Pninj,t = 
gg n
Pg ,t + 
ststn
Psst ,t − PLn ,t

(3-34)
Qninj,t = Q
gg n
g ,t +  Qc
ccn
c ,t − QLn ,t

n,t = m,t + 2(rm Fmp,t + xm Fmq,t ) + (rm2 + xm2 ) m ,t , m nn (3-35)

( Fnp,t )2 + ( Fnq,t ) 2  n,t n ,t , n  0 n,t = Vn2,t , n ,t = I n2,t (3-36)

V 02 (1 − 0 )2  n,t  V 02 (1 + 0 ) 2 (3-37)

3.10.7.2.Linear DistFlow
The presented SOCP method is an exact convex model for power flow. However, it is a
MIQCP model. There is another power flow method that is a linear model. The
mathematical formulation of the Linear DistFlow [34] method is indicated in (3-34)-
(3-44). As can be observed, its accuracy is higher than the DC load flow method. It
determines the bus voltages, while it does not model the power loss of the lines. It should

20
be noted that equation (3-44) is not included in the optimization model. It is used to
calculate the bus voltages after solving the optimization problem.
(3-38)
Fnp,t + Pninj,t = F
mn
p
m ,t , Fnp=0,t = 0

(3-39)
Fnq,t + Qninj,t = F
mn
q
m ,t , Fnq=0,t = 0

(3-40)
Pninj,t = 
gg n
Pg ,t + 
ststn
Psst ,t − PLn ,t

(3-41)
Qninj,t = Q
gg n
g ,t +  Qc
ccn
c ,t − QLn ,t

n,t = m,t + 2(rm Fmp,t + xm Fmq,t ), m nn (3-42)

V 02 ( 0
2
− 2 0 )   n ,t  V 0 2 ( 0
2
+ 2 0) (3-43)
n,t = Vn2,t − V 02 (3-44)
3.10.8.Energy exchange with the main grid
MG can export/import electrical energy to/from the main grid. The cost of the energy
exchange with the main grid is calculated by (3-45) in which Pt maingrid is the electrical
imported power from the main grid and prct is the electricity market price. The negative
value for Pt maingrid means the power export to the main grid resulting in the negative cost
that means the profit.
Ctgrid = Pt maingrid prct (3-45)

3.11. Mathematical modelling of system security

Power system reliability is a concept introducing different indices showing the system
capability to deal with the planned and unplanned outages of the equipment. It is divided
into two popular terms of adequacy and security. The reliability of the system in a short-
term scheduling problem is analyzed through the concept of system security. n-1 is a well-
known criterion in security modelling. It means that the normal state working point of the
system should be robust against the outage of any single element of line or power plant so
that the operating limits are satisfied and all the loads are supplied. Usually, MG’s security
is analyzed when it is suddenly isolated from the main grid [35]. In comparison to the large
power systems, MGs have lower inertia. So, the power disturbance severely affects the
MGs frequency. In fact, in addition to the reserve constraints, some frequency-related
constraints should be considered in the scheduling procedure as dynamic security. Here,
two formulations are presented for the dynamic security which are compatible with HAS
and RTS.

21
3.11.9.Security modelling in HAS
It is not possible to include the exact frequency control models in the HAS. Because the
on/off status of the resources is unknown and the frequency response model is undefined.
HAS should provide enough online generators to increase the system’s inertia and its
capability to respond to the power disturbance. Here, an energy-related frequency response
model is presented [36], [37]. The kinetic energy of the MG is indicated in (3-46) in which
JT and f are respectively the total inertia moment of MG and the frequency of MG.
1 T (3-46)
J ( 2 f )
2
E=
2
JT is the sum of inertia moments of the online generators as indicated in (3-47). In this
equation, Hk is the inertia constant of the kth generator.
2 P max H k (3-47)
JT = 
konline generators
J k =  uk J k =  uk
k k 4 2 f 2
A power mismatch of D>0 (kW) for t seconds reduces the system’s energy as much as
t
E1 =  Dd = Dt . Generation units change their production to deal with the disturbance.
0
t
rt 2
This changes the systems’ energy as much as E2 =  r d = , in the opposite direction
0
2
of E1 , in which r is the equal ramp rate of the generators. Considering E = E1 − E2 as
the net energy deviation of the system, the time of minimum kinetic energy ( t nadir ) can be
calculated by (3-48).
d D (3-48)
( E ) = 0 → t nadir =
dt r
According to the minimum allowed value of the system frequency (fmin), a lower bound is
determined for the systems’ kinetic energy in t=tnadir as indicated in (3-49).
D2 1 T (3-49)
1 T
J ( 2 f ) − ( )
2
 J 2 f min
2
E − E  E min →
2 2r 2
Replacing (3-47) and (3-48) into (3-49) results in (3-50).

( )
2
2 f − f min (3-50)
t nadir

f 2D
u P
k
k k
max
Hk

On the other hand, it takes tr minutes to deliver Ri MW of reserve capacity by the generation
unit of i. It is determined considering its ramp rate (ai) as indicated in (3-51).
Ri
tr = (3-51)
ai
When tr of the reserve units is lower than tnadir , the system frequency won’t be lower than
fmin. Considering (3-50) and (3-51), reserve allocation should be constrained as indicated
in (3-52).
22
 ( )
2
Ri 2 f − f
min

ai

f 2D
u P
k
k k
max
Hk (3-52)

Also, the sum of reserve capacity of the generators should be equal to the power mismatch
(3-53).
R
i
i =D (3-53)
In the connected mode operation of MG, the power mismatch of D is equal to the amount
of power exchange with the main grid. In the isolated MGs, any load connection or the
generation outage can be considered as the power disturbance.
Example3.4: An isolated MG is analyzed in this example. If in Example3.1 generation
capacity of MTs is increased to 40 kW, MG will be able to serve the loads in the islanded
mode. The technical and economic specifications of the generation units are indicated in
Table 3-1.
Table 3-1: Technical and economic properties of the generation units of MG
H (sec) Pmax (kW) Pmin (kW) Cost (cent/kW) Ramp rate (kW/sec)
MT1 1.5 40 4 4 10
MT2 1.5 40 4 4.4 12
PV 0 variable 0 0 50
As indicated in Fig. 3.14.a, if the frequency deviation is not considered in the system
scheduling, PV and MT1 will supply the load during the whole operation horizon. Given
the generation cost of resources, that is the right decision. By adding the frequency-related
constraints, different factors affect the power generation schedule. Factors such as inertia
constants of the online generators, minimum allowed frequency, ramp rate of the resources,
and the power mismatch. Assuming fmin =49Hz and D=5% load, generation scheduling
will be as Fig. 3.14.b. It is worth noting that, the PV power plant can participate in the
primary frequency regulation procedure [38]–[41]. As can be observed, MT2 that is an
expensive generation unit is online in many hours, and it generates as much as its minimum
power. In fact, on the one hand, it increases the system’s inertia and on the other hand, it
provides a fast reserve resource. Fig. 3.14.c indicates the reserve capacity of different
resources. PV unit having low operation cost is often operated on its maximum generation
ability and does not provide reserve capacity. Fig. 3.14.d indicates tr of the units and tnadir
of the system. Reserve capacities are deployed before tnadir.

23
 Fig. 3.14: Results of HAS for islanded MG of Example3.4: a) Power generation of different resources in
the insecure operation. b) Power generation of different resources in the secure operation. c) Reserve capacity
of different resources. d) The reaction time of the reserve resources vs the frequency drop time.

Example3.5: Increasing the generation cost of MT2 to 6 (cent/kW) changes the scheduling
results. In this condition, as indicated in Fig. 3.15.a MT2 is turned off in many hours that
results in the low inertia constant of the MG. To deal with this problem, the PV unit having
a very high ramp rate reduces the power generation (Fig. 3.14.d) and provides a large share
of the reserve capacity (Fig. 3.14.b). Despite the reduction of the system’s inertia during
the hours 9-19, the reserve capacity is deployed very fast as indicated in Fig. 3.14.c.

24
 Fig. 3.15: Results of HAS for islanded MG of Example3.5: a) Power generation of different resources. b)
Reserve capacity of the MG’s resources. c) The reaction time of the reserve resources vs the frequency drop
time. d) PV unit’s generated power vs its available power.

3.11.10.Security modelling in RTS

In RTS, online generators are determined by the latest HAS. Hence, the frequency response
model can be constructed. It can be used to limit the disturbance power of the MG within
a specified margin avoiding frequency deviation beyond the allowed values. For instance,
in the connected operation mode of MG, the sudden islanding severely affects the MG’s
frequency. Especially when the power exchange with the main grid is high, the RTS should
limit the power exchange. Frequency response in the downside of the network can be
calculated by the linear frequency response model of [42] that is indicated in Fig. 3.16. As
indicated, the input power of MG is considered as the disturbance power of the frequency
response model.

−k Secondary 1 Primary control

loop (MT)
control
s loop R Micro turine

_
1 1 + 1 f
+ 1 + T vS 1 + TtS _ + 2Hs + D
Governer Turbine

kss
ΔP=Pmain grid 1 + TsS
Virtual inertia
control system

25
 Fig. 3.16: Frequency response diagram of MG

According to Fig. 3.17, Assuming fα as the maximum frequency deviation for power
disturbance of pα, power exchange should be within the specified margin of (3-54) avoiding
frequency to go beyond HZmax.[43].
Hz max Pt maingrid Hz max
−    (3-54)
ft p ft

0
Frequency response for power
disturbance of pα
Frequency

-f α

-Hzmax

0
Time (sec)
Fig. 3.17: The impact of power disturbance on the MG’s frequency deviation

In order to calculate the dynamic parameters of the frequency response model of the MG’s
equal machine, equations of (3-55)-(3-61) should be considered [44].


konline generator
Pkmax H k
H= (3-55)

konline generator
Pkmax


1
Pkmax
1 konline generator
Rk
= (3-56)
R 
konline generator
Pkmax


konline generator
Pkmax Tkv
Tv = (3-57)

konline generator
Pkmax


konline generator
Pkmax Tkt
Tt = (3-58)

konline generator
Pkmax


ionline generator
Pimax k i
k= (3-59)

ionline generator
Pimax

26
 
ionline storages
Pimax k is
ks = (3-60)

ionline storages
Pimax


konline storages
Pkmax Tks
Ts = (3-61)

konline storages
Pkmax

In the islanded operation mode in which the outage of generation units leads to power
disturbance, the frequency limit of (3-54) can be considered in several single contingencies
of the online generators.
Example3.6: Suppose that in Example3.4, MG is connected to the main grid. Dynamic
parameters of MTs are indicated in Table 3-2. Also, ks and Ts are respectively 0.5 and 10
seconds.
Table 3-2: Dynamic parameters of the MTs
H Tv Tt R D K ks Ts
(p.u. MW/sec) (sec) (sec) (Hz /p.u. MW) (MW/Hz) (p.u. MW/Hz) (sec) (sec)
MT1, MT2 1.5 0.1 0.4 2.4 0.015 0.05 0.5 10
We want to schedule the MG in real-time during 04:00 – 08:45. The results of the latest
HAS are provided and determine the online generators in different hours as indicated in
Fig. 3.18.a. The electricity market price and generation cost of MTs are indicated in Fig.
3.18.b, and RTS is run in 15 minutes intervals. When there is no attention to the frequency
response of the MG in the sudden islanding, MG imports power from the main grid and
reduces the power generation of MTs in must of operation horizon as indicated in Fig.
3.18.c. According to the market prices variations, it is the best decision in the economic
viewpoint. Adding security constraints changes the MG’s scheduling. When the maximum
frequency deviation is limited to 0.1 Hz, input power from the main grid will be reduced
as indicated in Fig. 3.18.d. This scheduling guarantees the secure operation of MG in the
case of sudden islanding. As can be observed, during the hours 7 and 8 in which both of
the MTs are online, power scheduling has no significant sensitivity to the frequency
constraints. Because in this condition high inertia constant of MG avoids the severe
frequency deviation. In return, low inertia constant of MG during the hours 4 to 6, activates
the frequency constraint and changes the generation scheduling decisions.

27
 (a) (b)

(d) (c)

Fig. 3.18: The impact of frequency constraints on the RTS: a) Given the status of MTs from HAS. b)
generation cost of MTS and the electricity market price in RTS. c) Power generation scheduling in an
insecure operation. d) Power generation scheduling in the secure operation.

4. Conclusion
The EMS is a vital element in an MG that monitors and controls all the interactions and
operates different resources based on the determined strategies. In order to analyze the MG
operation, EMS provides different analytical tools, the most widely used of which is the
optimal operation tool. This chapter focused on this aspect to present the scheduling models
of MG. Cost minimization and profit maximization are two popular operation strategies of
the MG. According to the intrinsic properties of some of the decision variables and the
uncertainties of the input parameters, a two-stage scheduling structure was used for EMS
which includes the HAS and RTS. HAS includes a UC model and is hourly run to schedule
the MG from the running time to the end of the operation horizon. Hence, all of the
forecasted parameters of the next hours are considered in HAS. According to the variability
of the input parameters such as load, renewable power generation, and electricity market
price, the results of HAS are not appropriate for the system operation and MG should be
rescheduled near the real operation time by RTS. By receiving the on/off status of the
resources from the results of the latest HAS, the RTS only focuses on the current hour
using an ED model. To deal with contingencies, security was considered in EMS using the
frequency response model. MG’s inertia is very low and sudden contingencies severely
deviate the frequency. An energy-based frequency response model was applied to HAS to
the commitment of fast response generators in accordance with the MG’s inertia. In RTS,
the online generators are given by the latest HAS. So, the exact frequency deviation was
calculated by the frequency response diagram, and an allowed range was determined for it.
28
The mathematical formulations and technical details of this chapter were included both the
islanded and connected operation mode of MG.

29
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