Journal of Energy Storage 67 (2023) 107632

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Journal of Energy Storage

journal homepage: www.elsevier.com/locate/est

Research papers

A multi-level multi-objective strategy for eco-environmental management

of electricity market among micro-grids under high penetration of smart
homes, plug-in electric vehicles and energy storage devices
Saeid Fatemi a, Abbas Ketabi a, *, Seyed Amir Mansouri b
a
Department of Electrical and Computer Engineering, University of Kashan, 6 km Ghotbravandi Blvd, Postal Code: 8731753153, Kashan, Iran
b
Institute for Research in Technology (IIT), ICAI School of Engineering, Comillas Pontifical University, 28015 Madrid, Spain

A R T I C L E I N F O A B S T R A C T

Keywords: This article develops a stochastic multi-level multi-objective strategy to facilitate the electricity market clearing
Micro-grids process among micro-grids considering the environmental impacts of fossil fuel powered generation units.
Electricity market Various types of distributed renewable energy resources (DRERs), plug-in electric vehicles (PEVs) and internet-
Bidding strategy
of-things (IoT)-enabled smart homes (SHs) are considered in the proposed concept. In addition, energy storage
Vehicle-to-grid services
devices (ESDs) are installed in SHs, micro-grids and distribution network to handle the negative impacts of
Energy storage devices
Emission operational uncertainties arising from DRERs and load demand. Scenario-based stochastic (SBS) method is
adopted to model the scenarios of uncertain parameters. In the proposed methodology, micro-grids build their
bids/offers for market participation by using the weighted fuzzy method with regard to the SHs optimal pro­
grams and aiming to minimizing operational and emission costs. SHs have PEVs and ESDs, and control their
controllable appliances via the IoT. The proposed methodology is formulated in linear form and is implemented
on a modified IEEE 33-node distribution network comprising three micro-grids. The simulation results prove that
the IoT infrastructure in SHs has led to their effective participation in the electricity market and subsequently
lowering their costs by 9.13 %. Besides, the results reflect that the provision of vehicle-to-grid services by PEVs
along with the optimal operation of ESDs not only lowers the market settlement price (MSP) by about 25 %
during the high-demand period, but also reduces daily operation costs and carbon emissions by 32.85 % and
27.65 %, respectively.

using micro-grids in electricity markets. A new methodology for coor­

1. Introduction
1.1. Background and literature review
The continuous growth of electrical energy consumption in various
industries has made it inevitable to install renewable and non-renewable
distributed energy resources at different levels of distribution systems.
This dispersion of generation resources leads to the complexity of
network control and operation. Therefore, regional control of genera­
tion units in the form of micro-grids has become very popular in recent
years. Modern micro-grids have generation resources, ESDs and a
number of loads that are operated in a decentralized manner. Operation,
control and participation of these micro-grids in competitive electricity
markets are critical issues that have attracted the attention of re­
searchers in recent years. In this light, [1] examines the advantages of
dinated scheduling of micro-grids is provided in this study, and the re­
sults mirror that the participation of micro-grids in the energy markets
and ancillary services markets enhances the flexibility and reliability of
the operation. In [2], a two-stage model is developed to solve the
problem of coordinated scheduling of networked micro-grids in both
day-ahead and real-time markets. At the first stage, the initial scheduling
of each micro-grid is solved, then, in the second stage, the initial
scheduling of micro-grids is updated by leveraging the potential of
flexible resources such as gas turbine and ESDs. DRPS are implemented
to provide more flexibility for the operator and also to reduce peak load.
The results demonstrate a significant reduction in the daily cost of
micro-grids using the proposed model. In [3], a two-level model for
reducing energy prices in the local electricity market among micro-grids
is presented. The proposed methodology tries to reduce the electricity
prices in the local electricity market using the actor-critic reinforcement

* Corresponding author.
E-mail addresses: aketabi@kashanu.ac.ir (A. Ketabi), amir.mansouri24@gmail.com, smansouri@comillas.edu (S.A. Mansouri).

https://doi.org/10.1016/j.est.2023.107632
Received 21 January 2023; Received in revised form 16 April 2023; Accepted 3 May 2023
Available online 12 May 2023
2352-152X/© 2023 Elsevier Ltd. All rights reserved.
S. Fatemi et al. Journal of Energy Storage 67 (2023) 107632

Nomenclature PLoad,Base
n,t,s Preferred load curve of SH (kW)
PLoad,Fix
n,t,s Fix load curve of SH (kW)
Abbreviations
PW,max Nominal power of wind turbine (kW)
DRER Distributed Renewable Energy Resource w

ESD Energy Storage Device PPV,max

pv Nominal power of solar panel (kW)
IoT Internet-of-Things PFn Node power factor
MSP Market Settlement Price πGT
g Gas turbine operation cost ($/kW)
PEV Plug-In Electric Vehicle πEm.GT
g Emission factor of gas turbine ($/kW)
SBS Scenario-Based Stochastic πEn Energy price ($/kW)
t
SH Smart Home
πRt Reward price of PEV participation ($/kW)
V2G Vehicle-to-Grid Buy
PSell
mg,j,t,s /Pmg,i,t,s Max Sell/Buy level in market purchase/sale bids
Sets rl Branch resistance (ohm)
e Energy storage device index ρs Scenario probability (%)
ev Electric vehicle index SOCEV,min /SOCEV,max Min/Max SOC of PEVs (%)
t t
g Gas turbine index SOCevEV,Initial
/SOCEV,Final Initial/Final SOC of PEVs (%)
ev
i,j Market purchase/sale bids index
Smax
l Network branch capacity (kVA)
it Market iteration index
l Branch index UApp
x Utilization time of appliances (h)
mg Micro-grid index vt,s Wind speed (m/s)
n.m Node index ϑl,n Flow direction coefficient
pv Solar panel index wx Appliance comfort weight
s Scenario index Variables
t Time index
CEES
e,t,s Operation cost of EDSs ($)
w Wind turbine index
x,y Appliance index CGT
g,t,s Operation cost of gas turbine ($)
Ee,t,s Energy level of EDSs (kWh)
Scalar EGT Emission cost of gas turbines ($)
g,t,s
Δt Time step (h)
ECNormalize
mg,s Normalized value of emission cost
ηCh /ηDch Charge/discharge efficiency of EDSs (%)
OCNormalize Normalized value of operation cost
ηPV Solar panel efficiency (%) mg,s
MVmg,t,s Marginal shadow price of micro-grid power balance
GSTD Sun irradiance at STD conditions (W/m2)
Ch,max Dis,max ($/kWh)
γ /γ Max charge/discharge rate of PEVs (%)
MVL Max violation level of preferred load curve (kW2) PApp
x,n,t,s Appliance power (kW)
πEm,Grid Emission factor of grid power ($/kW) PCh Dch
e,t,s /Pe,t,s Charge/Discharge power of EDSs (kW)

πEES EDS operation cost ($/kW) PEV,Ch EV,Dis

ev,t,s /Pev,t,s Charge/Discharge power of PEVs (kW)
Sbase Base power (kVA) PNet
n,t,s Net load of SH (kW)
θmin /θmax Min/Max voltage angle (rad) PGT GT
g,t,s /Qg,t,s Active/Reactive power generation of gas turbine (kW/
V min /V max Min/Max voltage magnitude (p.u) kVAR)
vci /vco /vr Cut-in/Cut-out/Rated wind speed (m/s) Pline /Qline
l,t,s l,t,s Active/Reactive power flow of network branches (kW/
ω1 /ω2 Objectives weight factors kVAR)
Ploss Active power loss (kW)
Parameters l,t,s

αx /βx Appliance time window (h) PMarket

mg,t,s Market power exchange (kW)
αmax
g Reactive power rate of gas turbine (%) PPV
pv,t,s Power generation of solar panel (kW)
CapEV
ev PEV capacity (kWh) PW
w,t,s Power generation of wind turbine (kW)
EApp
x Appliance energy (kWh) SOCEV ev,t,sc SOC level of PEVs (%)
EInitial
e Initial energy of PEVs (kWh) θn,t,s Voltage angle (rad)
ECmin
mg,s /ECmg,s Min/Max emission cost of micro-grids ($)
max UCLn Comfort level of SHs (%)
bus
EMin
e /Ee
Max
Min/Max energy of EDS (kWh) Vn,t,s Voltage magnitude (p.u)
Gt,s Sun irradiance (W/m2)
Binary variables
Gl /Bl Conductance/susceptance of network branches (p.u) Allow
Ix,n,t,s Status of slave appliance over master appliance
OCmin
mg,s /OC mg,s Min/Max operation cost of micro-grids ($)
max
App
Ix,n,t,s Status of appliances
PLoad Load
n,t,s /Qn,t,s Active/Reactive load of nodes EV,Ch EV,Dis
Iev,t,sc /Iev,t,sc Charge/Discharge status of PEVs
PCh,Max
e /PDch,Max
e Max charge/discharge level of EDS (kWh)
Ch Dch
Ie,t,s /Ie,t,s Charge/Discharge status of EDSs
PExch,Min
mg,t,s /PExch,Max
mg,t,s Min/Max exchange level of micro-grid (kWh)
Sell Buy
PGrid Grid Img,j,t,s /Img,j,t,s Status of market sale/purchase bids
t,s /Qt,s Active/Reactive power exchange with main grid (kW/
Start
kVAR) Iy,n,t,s Start flag status of appliances
PGT,min
g /PGT,max
g Min/Max generation level of gas turbine (kW)

2
S. Fatemi et al.
learning algorithm. Impacts of energy interactions among micro-grids
are investigated and the outputs of the simulation confirm the effec­
tiveness of the proposed methodology on reducing electricity prices. In
[4], the effects of coordinated scheduling of micro-grids on improving
power system efficiency, increasing stability, and improving system
reliability have been comprehensively reviewed. This research reveals
that the implementation of DRPs can dramatically increase the positive
effects of the micro-grid on efficiency, stability and reliability of the
system. In addition, this research shows that the coordinated scheduling
of micro-grids leads to the improvement of network security against
cyber-attacks. In [5], the impact of ESDs and DRPs on the electricity
market has been investigated. For this purpose, a multi-stage model is
developed to determine the optimal scheduling of networked micro-
grids. In stage 1, the individual optimal program of each micro-grid is
determined, whereas in stage 2, the market settlement process is carried
out according to the proposals made by micro-grids. The simulation
results substantiate the impact of the proposed methodology on the
reduction of operating costs (OCs) and emissions. Moreover, the simu­
lation outputs reflect the impact of DRPs and ESDs on improving oper­
ational flexibility. In [6], a hierarchical strategy for energy exchange
between micro-grids is presented, in which a dynamic pricing tariff is
used. The objective function considered includes the minimization of the
system cost, where the penalty function is used to maintain coordination
between micro-grids. The results obtained from the simulation indicate
the possibility of reducing the cost of the whole system up to 3.5 %. A
two-stage optimization model is presented in [7], in which energy and
ancillary services markets are investigated in the presence of inter­
connected micro-grids. The main goal of the proposed methodology is to
create interaction between micro-grids and smart distribution networks.
The optimal scheduling of micro-grids is done in the first stage aiming at
cost minimization. Then, the coordination between micro-grids and the
distribution system is guaranteed in the second stage, with the aim of
minimizing losses and voltage security The results confirm the
improvement of economic and technical indicators using the presented
two-level model.
Climate change caused by the emission of pollution has made the
replacement of fossil fuel vehicles with renewable-based vehicles inev­
itable. Renewable-based vehicles not only lead to a significant reduction
in pollution emissions but also can significantly improve operational
flexibility by adopting intelligent strategies. In [8], the behavior of
micro-grids containing a large number of PEVs has been investigated. In
this research, the authors presented a multi-stage framework for the
scheduling of interconnected micro-grids where a robust method was
used to control uncertainties. In the first stage, the micro-grids plan the
operation of their components, and then in the second stage, the micro-
grids send the purchase and sale offers to the retail market, where the
MSP is calculated. Numerical outputs of the simulation prove that the
intelligent control of PEVs' charging program has had a significant effect
on reducing the MSP in the retail market.
In [9], a decentralized model for solving the operational planning
problem of micro-grids in a stochastic environment is presented. In the
proposed concept, micro-grids consist of three infrastructures: elec­
tricity, gas and hydrogen. Electrical and thermal storage systems and
PEVs are considered in the model where the Latin Hypercube Sampling
method is used to manage uncertainty. The results prove the high speed
of convergence of the proposed methodology as well as its effect on
increasing the profit of micro-grids. In [10], a cooperative strategy for
managing the electricity market among networked micro-grids is pre­
sented, taking into account PEVs and DRERs. The effect of DRPs and
online network reconfiguration on the electricity market is investigated
and the results reveal that the use of EV batteries reduces the MSP in
high-demand period by 9.33 %. Also, the results reflect that online
network reconfiguration can reduce the daily cost of micro-grids in the
electricity market by 9.2 %. It is pointed out in [11] that with the
intelligent control of the charging/discharging program of PEVs, many
technical and economic benefits can be brought to the system in addition
3
Journal of Energy Storage 67 (2023) 107632
to the environmental benefits. In this research, the provision of V2G
services by PEVs in active distribution networks is investigated. The
numerical results of this research show the high impact of intelligent
control of electric vehicle charging/discharging program on improving
reliability and reducing OCs. In [12], an incentive-based DRP model is
presented to improve the charging curve of PEVs. The uncertainties of
the load, DRERs, price and charging rate of PEVs are modeled using the
point estimation method and the simulation outputs indicate that the
provision of V2G services by PEVs reduces system costs up to 19.36 %.
The increase of uncertainties resulting from the significant increase
of DRERs in distribution systems has faced challenges to the stability and
reliability of operation. In this way, researchers have presented various
techniques to include these uncertainties in micro-grid scheduling. For
example, in [13], a stochastic technique was used to include un­
certainties resulting from demand and DRERs, where DRPs were
implemented to modify the demand pattern of the system. The sched­
uling problem is solved by the Hybrid genetic ant colony algorithm
considering both real-time pricing and time of use (ToU) pricing pro­
grams, and the numerical outputs show that the use of stochastic tech­
nique along with the implementation of DRPs not only lowers the daily
costs but also increased the stability and reliability of the system. In
[14], a new model for the participation of micro-grids in the retail
market is introduced, where the chance-constrained technique is used to
manage the uncertainties of the electricity price. Micro-grids have the
possibility of peer-to-peer (P2P) power exchange where their objective
function is the profit maximization. The alternating direction method of
multipliers (ADMM) algorithm is adopted to solve the proposed meth­
odology and the outputs confirm that the proposed methodology re­
duces the negative effects of price uncertainties on the electricity
market. In [15], the advantages of combining ESDs with wind and solar
renewable sources have been investigated. In this research, the sched­
uling of micro-grids was done based on a cooperative game theory
where artificial neural network (ANN) is used to predict the uncertain
parameters of operation. The implementation of the proposed method­
ology on a 33-bus network consisting of several micro-grids confirms its
effect on the reduction of the daily costs of micro-grids. In [16], a risk-
averse model is used to reduce the impact of uncertainty on energy
market transactions, where the scheduling of micro-grids is done
through a three-level model. This methodology is formulated as a mixed-
integer quadratic programming problem (MIQCP) and implemented on
a 69-node network consisting of five micro-grids. The simulation results
show that adopting a risk-averse strategy leads to reducing the adverse
effects of uncertainties on micro-grid scheduling. In addition, the results
confirm a significant reduction in daily costs due to the simultaneous
presence of ESDs and DRPs. A linear model for energy management of
interconnected micro-grids is introduced in [17], in which micro-grids
are programmed based on adjusted price signals. The proposed meth­
odology is solved by the ADMM algorithm and in an iteration-based
process where the micro-grid program is updated in each iteration
based on price signals and then sent to the distribution system operator.
Note that price signals are built based on mismatches between supply
and demand. The simulation outputs show the speed and accuracy of the
proposed method for micro-grids scheduling. In [18], the scheduling of
micro-grids within an active distribution system is carried out by
considering dynamic pricing tariffs, where the robust optimization
method is adopted to neutralize the effects of uncertainties on operation.
The simulation results reflect that this robust optimization technique
significantly increases operational security despite the relative increase
in daily costs.
Equipping a large range of end-users with communication and smart
metering devices in recent years has facilitated the implementation of
DRPs and thereby led to increased productivity and reduced OCs in
distributed systems. In [19], DRPs are used to improve the economic and
productivity indicators of a reconfigurable distribution system consist­
ing of several micro-grids. The Artificial Bee Colony algorithm was used
to solve the day-ahead operation problem and the results prove the
S. Fatemi et al. Journal of Energy Storage 67 (2023) 107632

Table 1
Comparison of the proposed strategy with recent studies.
Refs. Objectives Multi-level IoT-enabled PEV DRP Market clearing Renewable Uncertainty Optimal power
modelling users process flow
G2V V2G Wind PV

[26] Operating cost ✓ ⨯ ⨯ ⨯ ⨯ ⨯ ✓ ✓ ✓ ✓

Resilience
Emission
[20] Operating cost ✓ ✓ ⨯ ⨯ ⨯ ⨯ ✓ ✓ ✓ ✓
Comfort
[27] Operating cost ⨯ ⨯ ⨯ ⨯ ⨯ ✓ ✓ ✓ ⨯ ⨯
[28] Operating cost ✓ ⨯ ⨯ ⨯ ⨯ ⨯ ⨯ ✓ ✓ ⨯
Profit
[29] Profit ✓ ✓ ⨯ ⨯ ✓ ✓ ⨯ ✓ ✓ ⨯
[6] Operating cost ✓ ⨯ ⨯ ⨯ ⨯ ⨯ ✓ ✓ ⨯ ⨯
[14] Operating cost ✓ ⨯ ⨯ ⨯ ✓ ✓ ✓ ✓ ✓ ✓
[30] Operating cost ⨯ ⨯ ✓ ✓ ⨯ ⨯ ⨯ ✓ ✓ ⨯
Efficiency
[31] Operating cost ✓ ⨯ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Profit
[32] Operating cost ⨯ ⨯ ✓ ✓ ⨯ ⨯ ✓ ✓ ✓ ⨯
Benefit
[33] Operating cost ✓ ✓ ⨯ ⨯ ✓ ✓ ✓ ✓ ⨯ ⨯
Emission comfort
[34] Operating cost ⨯ ⨯ ⨯ ⨯ ⨯ ✓ ⨯ ✓ ⨯ ✓
Social welfare
Proposed Operating cost ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
strategy Emission
Social Welfare
Index

impact of this methodology on increasing the speed of solving, reducing
costs and reducing system losses. In [20], a linear model is proposed to
solve the scheduling problem of micro-grids integrated with SHs, where
uncertainties and DRPs are also considered. In this research, a two-level
methodology for scheduling of SHs and micro-grids is presented, which
is formulated in a linear format. The implementation of various case
studies demonstrates the impact of DRP and ESDs on reducing the
negative effects of uncertainties on operation, reducing daily costs and
improving reliability. Also, the results confirm that the proposed
methodology ensures the comfortable lifestyle of SH residents. In [21],
the wind-driven bacterial foraging algorithm is used for energy man­
agement of SHs. In the proposed concept, SHs participate in DRP by
receiving price signals, where their objective function includes oper­
ating cost, welfare index, and PAR. The simulation results show that
participation in DRP not only significantly reduced the PAR index, but
also lowered the daily costs of SHs. In [22], a novel hybrid method
consisting of two artificial intelligence techniques including NSGA-II
and SVR is introduced for optimal scheduling of SHs considering
DRPs, where the objective function of SHs includes electricity bill cost
and comfort index. The simulation results show the great effect of the
proposed hybrid methodology on reducing the time of solving the
optimization problem. Moreover, the results confirm the effect of DRPs
on reducing the SH bill by 51.4 %. In [23], a linear model is proposed to
improve the power factor of the network using incentive-based DRP
implementation. The results of this research show a significant
improvement in the network power factor during peak periods due to
the participation of smart subscribers in DRP. In [24], an optimal
strategy for the energy management of SHs with solar panels, ESDs and
PEVs is presented and the results demonstrate that the participation of
SHs in DRP along with the optimal charge/discharge of ESDs and PEVs
leads to a reduction of about 30 % of their daily expenses.
1.2. Research gap and contributions
Table 1 is presented to compare this paper with recent studies.
Examining recent research reveals that there is a big gap in investigating
the impact of SHs and PEVs on the technical and economic aspects of
micro-grids and distribution systems. Also, by reviewing the above
literature, it can be seen that the impact of V2G services and optimal
scheduling of SHs on the bidding strategy of micro-grids and the clearing
price of the electricity market has not been well addressed. Therefore, to
bridge the above-mentioned gaps, we present a multi-level model to
investigate the impact of optimal scheduling of SHs, ESDs and provision
of V2G services on the bidding strategy of micro-grids and the clearing
process of the electricity market. The main innovations of our article are
as follows:
• Developing an eco-environmental three-level strategy to clear the
electricity market among micro-grids taking the schedules of SHs and
PEVs into account
• Significant reduction of carbon emissions by providing a dual-
objective model for electricity market management
• Enhancing technical and economic metrics by using demand-side
management measures including SH flexible scheduling and provi­
sion of V2G services
• Achieving more cost-effective bidding strategies with optimal
scheduling of ESDs within SHs and micro-grids
• Increasing scheduling security by considering uncertainties caused
by DRERs and load demand
2. Proposed multi-level strategy
The main steps required to implement the proposed algorithm are
shown in Fig. 1. In the first part, the input information for simulation is
collected. This information includes controllable SH appliances' speci­
fications, distribution network specifications, and scenarios of loads,
wind speed and solar radiation. First, it should be mentioned that the
scenario-based stochastic method is adopted to include uncertainties in
the proposed strategy. In this method, the problem is solved by
considering a number of possible scenarios for each stochastic param­
eter. Note that wind speed, solar radiation and load demand are
considered to be stochastic parameters in this paper. To implement the
scenario-based method, wind, radiation, and demand scenarios are
generated by Weibull, beta, and normal distribution functions, respec­
tively [25]. Note that 1000 combined scenarios are formed and then the
k-means method is applied to reduce them to 10. In the second part
(Level 1), the proposed algorithm enters the first optimization loop. In
this loop, the optimal scheduling of each SH is solved in a decentralized

4
S. Fatemi et al. Journal of Energy Storage 67 (2023) 107632

Fig. 1. Implementation process of the proposed three-level strategy.

framework. The solution process is such that after determining the
minimum satisfaction index (SI), the operation status of SH appliances,
ESDs, EV batteries and power exchange with grid is determined where
the net load of the SH is specified. In the third part (Level 2), the optimal
scheduling of micro-grids to specify purchase and sale bids is carried out
taking the programs obtained for SHs into account. The scheduling
problem of micro-grids is solved in a dual-objective form where OCs and
emission are minimized simultaneously. To this end, it is needed to
calculate extreme points of the operating cost and emission for each
micro-grid since these extreme points are used to normalize the final
objective function. Ultimately, the normalized objective function of each
micro-grid is used to specify purchase and sale bids. In the last part
(Level 3), the distribution network operator specifies the MSP according
to the purchase and sale bids sent by the micro-grids, in which the social
welfare is maximized.

5
S. Fatemi et al. Journal of Energy Storage 67 (2023) 107632

Table 2 2.1. Mathematical formulation

General details on studied cases.
CS Problem Objectives Uncertainty Customers ESDs option We used the linear programming formulation to model the proposed
modelling modelling modelling three-level strategy in this article. Three main objective functions
1 Single- Cost Deterministic Without Without ESDs related to levels 1 to three as well as technical constraints of the problem
objective IoT can be found below:
2 Multi- Cost & Deterministic Without Without ESDs
objective emission IoT 2.1.1. Level 1 (SH scheduling)
3 Multi- Cost & Stochastic Without Without ESDs
objective emission IoT
The electricity bill of SHs is minimized using Eq. (1). As per this
4 Multi- Cost & Stochastic With IoT Without ESDs equation, the objective function of SH comprises three main parts: en­
objective emission ergy purchase cost, battery degradation cost and profit due to the pro­
5 Multi- Cost & Stochastic With IoT Considering vision of V2G services.
objective emission ESDs in SHs
[ ]
6 Multi- Cost & Stochastic With IoT Considering ∑ ∑( ) ∑∑ ∑( )
objective emission ESDs in SHs min OCn = ρs πEn
t P Net
n,t,s + C EES
e,t,s − π R EV,Dis
P
t ev,t,s (1)
and providing s t t e∈Δen ev∈Δev
n
V2G services
7 Multi- Cost & Stochastic With IoT Considering
objective emission ESDs in SHs
2.1.2. Level 2 (micro-grid bidding strategy)
and network, In the second level, micro-grids are built their purchase/sale bids. To
and providing this end, they have to schedule their service area taking SH programs
V2G services into account. Micro-grids in level 2 builds 10 bids per hour. The
scheduling problem of micro-grids is modeled in dual-objective form by
using the objective functions provided in Eqs. (2) and (3). In Eqs. (2) and
Table 3 (3), respectively, the operating cost (OC) and emission are minimized.
Required parameters for simulation [37]. Let CGT EES En
g,t,s be the OC of gas turbines; Ce,t,s and π t respectively are the OC of

Gas turbines ESDs and price of power exchange with the grid. Cost and emission
objective functions are normalized via Eqs. (4) and (5), respectively. Eq.
Unit Location Active power Reactive power Owner
number capacity (kW) rate (%) (6) specifies the optimum solution for the dual-objective scheduling
problem based-on fuzzy weighted method [35]. In this equation a
1 5 250 30 Distribution
system weighted factor (ω1 /ω2 ) is assigned to each objective.
2 10 250 30 Micro-grid 1 The power balance condition of each micro-grid is modeled by Eq.
3 31 300 30 Micro-grid 2 (7). It should be pointed out that the marginal price related to bids is
specified using the shadow price of Eq. (7). In Eqs. (8) to (10), the
mathematical model for determining the purchase and sale bids is pre­
Renewable resources sented. The amount of power exchange with the grid is specified by Eq.
Unit Location Power capacity Type Owner (8). PExch,Min
mg,t,s and PExch,Max
mg,t,s represent the maximum amount of sell (a
number (kW) negative value) and purchase (a positive value), respectively. Finally, In
5 7 150 Solar panel Distribution Eqs. (9) and (10), micro-grid bids are assigned to purchase and sell sets
system based on their sign [36].
6 12 200 Solar panel Micro-grid 2
1 13 400 Wind Micro-grid 2
∑∑ ∑∑ ∑( )
min OCmg,s = CGT
g,t,s + CEES
e,t,s + πEn Market
t Pmg,t,s (2)
turbine
t g∈Δgmg t e∈Δemg t
2 15 300 Wind Micro-grid 2
turbine
∑∑ ∑( )
3 19 500 Wind Micro-grid 1 min ECmg,s = GT
Eg,t,s + πEm,Grid PMarket (3)
mg,t,s
turbine t g∈Δgmg t
7 23 150 Solar panel Micro-grid 1
4 28 500 Wind Micro-grid 3 max
turbine OCmg,s − OCmg,s
Normalize
OCmg,s = max − OCmin
(4)
OCmg,s mg,s

max
ECmg,s − ECmg,s
Table 4 Normalize
ECmg,s = max − EC min
(5)
Information on IoT-enabled home appliances [20]. ECmg,s mg,s

Appliance Operation time Activity period Required power

window (h) (kWh)
Normalize
max Zmg,s = ω1 OCmg,s Normalize
+ ω2 ECmg,s (6)

Start End ∑ ∑ ∑ ∑( )
(h) (h) PGT
g,t,s + PPV
pv,t,s PW
w,t,s + PDch Ch Market
e,t,s − Pes,t,s + Pmg,t,s
g
g∈Δmg pv∈Δpv w∈Δw e∈Δemg
Clothes dryer 11:00 22:00 1 1.8
mg mg
∑
Dishwasher 12:00 22:00 2 1.4 = PLoad
n,t,s , MVmg,t,s (7)
Electric kettle 6:00 10:00 1 1 n∈Δnmg
Iron 5:00 9:00 1 1.1
Microwave 11:00 22:00 2 1.8 ( )
it − 1 ( Exch,Max )
Rice cooker 10:00 15:00 2 0.6 PMarket Exch,Min
mg,t,s,it = Pmg,t,s + Pmg,t,s − PExch,Min
mg,t,s (8)
Toaster 6:00 10:00 1 0.8 itMax − 1
Vacuum cleaner 9:00 19:00 1 0.65
⎧
Washing 9:00 17:00 2 1 ⎨P̂ Buy Market
machine mg,i=it,t,s = Pmg,t,s,iter
if PMarket
mg,t,s,it ≥ 0→ (9)
⎩π Buy
mg,i=it,t,s = MVmg,t,s

6
S. Fatemi et al. Journal of Energy Storage 67 (2023) 107632

a) solar irradiance b) wind speed

c) Hourly energy price d) Demand profile

Fig. 2. Scenarios of input parameters [37].

Fig. 3. Overview of modified IEEE 33-node distribution network.

Table 5
Numerical results for CS1.
Micro-grid Costs ($) SHs

Power transaction Gas turbines ESDs Total OC Total EC Electricity bill ($) SI (%)

1 1345.39 0 0 1345.39 694.38 2605.06 100

2 − 445.46 386.58 0 − 58.88 436.94 1363.12 100
3 152.25 376.02 0 528.27 473.11 1857.88 100
Sum 1052.18 762.6 0 1814.78 1604.43 5826.06 –

⎧ 2.1.3. Level 3 (market clearing by distribution network operator)

⎨P̂ Sell Market
Market clearing is done using Eqs. (11) to (15) by the distribution
mg,j=iter,t,s = ∣Pmg,t,s,it ∣
if PMarket ≤ 0→ (10)
network operator. In this sense, the objective function of the third level
mg,t,s,it
⎩ πSell = MVmg,t,s
mg,j=iter,t,s
is provided in Eq. (11), which is social welfare maximization [37]. Eq.

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S. Fatemi et al. Journal of Energy Storage 67 (2023) 107632

Table 6
Numerical results for CS2.
Micro-grid Costs ($) SHs

Power transaction Gas turbines ESDs Total OC Total EC Electricity bill ($) SI (%)

1 1345.39 0 0 1345.39 694.38 2605.06 100

2 − 175.46 121.58 0 − 53.88 352.2 1392.07 100
3 473.5 226.44 0 699.94 356.16 1905.07 100
Sum 1643.43 348.02 0 1991.45 1402.74 5902.2 –

Fig. 4. Pareto-curve obtained for CS2.

(12) specifies the final amount of power exchange of each micro-grid appliances should be in a specified range (GapMax
x,y ). Total load demand of
according to its bids. Eqs. (13) and (14) restrict the power exchange of
IoT-enabled appliances is calculated by using Eq. (23). PLoad,Fix
n,t,s is the
each micro-grid to its bids. Eq. (15) prohibits the simultaneous purchase
fixed load of SH. Eq. (24) compute the SI of SH whereas Eq. (25) restricts
and sale of power in each micro-grid.
the minimum level (85 %) of the SI. MDL represents the maximum level
[
∑ ∑∑∑( Buy ) ∑∑∑( Sell ) of occupants' dissatisfaction.
Max SW = ρs πmg,i,t,s PBuy
mg,i,t,s − π mg,j,t,s PSell
mg,j,t,s
ExApp App
(16)
s t mg i t mg j
] PApp
x,n,t,s = Ix,n,t,s
∑( ) UxApp
− π En Grid
t Pt,s
∑
(17)
t App
Ix,n,t,s = UxApp
(11) t∈[αx ,βx ]

∑ ∑ Buy ∑
PSell
mg,j,t,s − Pmg,i,t,s = PMarket (12) App
∣Ix,n,t,s App
− Ix,n,t− (18)
mg,t,s 1,s ∣ ≤2
j i
t∈[αx ,βx ]

( ) ∑
PSell ̂ Sell Sell (13)
mg,j,t,s ≤ P mg,j,t,s Img,j,t,s
Allow
Iy,n,t,s − 1 M≤ App
Ix,n,t,s − UxApp + ε ≤ Iy,n,t,s
Allow
M (19)
t∈[αx ,βx ]

PBuy ̂ Buy Buy

mg,i,t,s ≤ P mg,i,t,s Img,i,t,s (14)
APP
0 ≤ Ix,n,t,s Allow
≤ Ix,n,t,s (20)
∑ ∑ Buy
Sell
Img,j,t,s + Img,i,t,s ≤ 1 (15)
j i
Start
Ix,n,t,s APP
≥ Ix,n,t,s APP
− Ix,n,t− 1,s (21)
∑ ∑
2.1.4. Technical constraints Start
Iy,n,t,s ord(t) − Start
Ix,n,t,s ord(t) ≤ GapMax App
x,y + Ux (22)
In this subsection, all operational constraints are provided. In this t t

way, SHs are operated according to the Eqs. (16)–(25) [37]. Eq. (16) ∑
specifies the power consumption of SH appliances according to their PLoad
n,t,s = PApp
x,n,t,s (23)
x
activity period (UApp
x ) and their hourly required power (EApp
x ). Binary
App ⎛ ∑∑ ( Load )2 ⎞
variable Ix,n,t,s identifies the activity status of appliance x per hour. The wx Pn,t,s − PLoad,Base
∑ ⎜
full operation of each appliance is guaranteed by Eq. (17) whereas its
n,t,s ⎟
UCLn = ρs ⎜
⎝1 −
t x ⎟ × 100
⎠ (24)
continuity of operation is guaranteed by Eq. (18). Eq. (19) models the s
MVL
relationship between master and slave appliances. The master and slave
appliances are respectively marked with the indices x and y. Constraint
(20) prevents the start of the slave appliance before the master appliance UCLn ≥ UCLMin (25)
is finished. The start time of each appliance is specified via Eq. (21). As The operation of PEVs is according to Eqs. (26) to (32) [38]. Power
per Eq. (22), the time gap between the activity of master and slave injection and extraction into/from the EV battery is restricted by Eq.

8
S. Fatemi et al. Journal of Energy Storage 67 (2023) 107632

Fig. 5. Power generation of gas turbines in CS1 and CS2.

(26). γCh,max and γ Dis,max , respectively, identify the charge and discharge EV,Ch
0 ≤ Iev,t,sc EV,Dis
+ Iev,t,sc ≤1 (28)
status of the vehicle battery. Eq. (27) expresses the impossibility of
charging the battery if there is no vehicle in the parking lot. Eq. (28)
PEV,Dis
formulates the technical limitation of simultaneous injection and ηCh PEV,Ch
ev,t,sc −
ev,t,sc

(29)
EV EV ηDis
extraction of power in the vehicle battery. Eq. (29) computes the hourly SOCev,t,sc = SOCev,t− 1,sc + Δt
CapEV
ev
rate the energy of the vehicle battery according to the power injection
and extraction in it.CapEV ev denotes the capacity of vehicle battery. The
EV
SOCev,t=T EV,Initial
a ,sc = SOCev (30)
initial energy level of the vehicle battery (SOCEV,Initial
ev ) at the time of
entering the parking lot is specified according to the SOCEV ev,t=Ta ,sc
EV
SOCev,t=T EV,Final
d ,sc = SOCev (31)
parameter, Eq. (30). As per Eq. (31), the energy level of the vehicle
battery at the time of leaving the parking lot (SOCEV ev,t=T d ,sc
) should be SOCtEV,min ≤ SOCev,t,sc
EV
≤ SOCtEV,max (32)
equal to SOCEV,Final
ev (95 %). Ultimately, Eq. (32) is used to control the Eq. (33) computes the net load of the SH considering power gener­
energy level of the vehicle battery in the entire operating period. ation of solar panel (PPV
pv,t,s ), charge and discharge of ESDs (Pe,t,s − Pe,t,s )
Ch Dch
⎧ ⎡ ⎞
⎨ 0 ≤ PEV,Ch ≤ γ Ch,max CapEV I EV,Ch and PEVs (PEV,Ch EV,Dch
ev,t,s − Pev,t,s ), the load demand of IoT-enabled appliances
(26)
ev,t,sc ev ev,t,sc
⎣ a d⎠
⎩ 0 ≤ PEV,Dis Dis,max
CapEV EV,Dis
t ∈ T ,T (PApp Load,Fix
x,n,t,s ) and fixed load (Pn,t,s ) of the home.
ev,t,sc ≤ γ ev Iev,t,sc
∑ ∑ ∑( )
⎧ PNet Load,Fix
n,t,s = Pn,t,s + PApp
x,n,t,s − PPV
pv,t,s + PCh Dch
e,t,s − Pe,t,s
⎨ PEV,Ch = 0 [ ) x pv∈Δn
pv e∈Δen
ev,t,sc
∈ T a, Td
t∕ (27) ∑( ) (33)
⎩ PEV,Dis
ev,t,sc = 0 PEV,Ch EV,Dch
+ ev,t,s − Pev,t,s
ev∈Δev
n

9
S. Fatemi et al. Journal of Energy Storage 67 (2023) 107632

Fig. 6. Exchanged power by Micro-grids in CS1 and CS2.

ESDs located in SHs, micro-grids and distribution network are

operated according to Eqs. (34) to (40) [39]. Eq. (34) imposes a limit on
the energy stored in ESDs. In Eq. (35), the hourly energy level of ESDs is
computed. Eqs. (36) and (37) limit the charge and discharge power
respectively. The impossibility of simultaneous charging and discharg­
ing of ESDs is shown by Eq. (38). Eq. (39) sets the energy level at a
specific value at the start and end of operation. Eq. (40) determines the
cost of battery destruction according to its charge and discharge rate.
Fig. 7. Power generation of DRERs in CS2 and CS3.

Table 7
Numerical results for CS3.
Micro-grid Costs ($) SHs

Power transaction Gas turbines ESDs Total OC Total EC Electricity bill ($) SI (%)

1 1591.11 0 0 1591.11 821.2 2950.6 100

2 − 144.79 121.58 0 − 23.21 405.93 1562.68 100
3 411.84 226.44 0 638.28 392.72 2100.61 100
Sum 1858.16 348.02 0 2206.18 1619.85 6613.89 –

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S. Fatemi et al. Journal of Energy Storage 67 (2023) 107632

Fig. 8. Exchanged power by micro-grids in CS2 and CS3.

11
S. Fatemi et al. Journal of Energy Storage 67 (2023) 107632

Fig. 9. MSP in CS2 and CS3.

Table 8
Numerical results for CS4.
Micro-grid Costs ($) SHs

Power transaction Gas turbines ESDs Total OC Total EC Electricity bill ($) SI (%)

1 1451.98 0 0 1451.98 758.43 2526.42 89.54

2 − 166.86 121.58 0 − 45.28 388.35 1269.22 91.22
3 372.11 226.44 0 598.55 362.68 1730.06 90.78
Sum 1657.23 348.02 0 2005.25 1509.46 5525.7 –

Fig. 10. Voltage curve in CS3 and CS4 at peak hour (21:00).

EeMin ≤ Ee,t,s ≤ EeMax (34) Ch

0 ≤ Ie,t,s Dch
+ Ie,t,s ≤1 (38)
( )
PDch Ee,t=0,s = Ee,t=24,s = EeInitial (39)
(35)
e,t,s
Ee,t,s = Ee,t− 1,s + ηCh PCh
e,t,s − Δt
ηDch
( )
EES
Ce,t,s = πEES PCh Dch
e,t,s + Pe,t,s (40)
0≤ PCh
e,t,s ≤ PCh,Max
e
Ch
Ie,t,s (36)
In the Eqs. (41) to (46) the operational restrictions of distributed
0 ≤ PDch Dch,Max Dch
e,t,s ≤ Pe Ie,t,s (37) energy resources are stated [40]. Eq. (41) is provided the wind power
generation restrictions according to the wind speed. This equation

12
S. Fatemi et al. Journal of Energy Storage 67 (2023) 107632

Fig. 11. Activity time of IoT-enabled appliances in CS3 and CS4.

Fig. 12. MSP in CS3 and CS4.

comprises a multi-part mathematical function that specifies the gener­ the hourly solar radiation intensity. The active power of the gas turbine
ation rate of the wind turbine according to the hourly wind speed. In Eq. is confined by Eq. (43). Besides, the hourly reactive power generation is
(42), the generation rate of the solar panel is computed with regard to limited by Eq. (44). Eqs. (45) and (46), respectively, compute the

13
S. Fatemi et al. Journal of Energy Storage 67 (2023) 107632

Table 9
Numerical results for CS5 to CS7.
CS5

Micro-grid Costs ($) SHs

Power transaction Gas turbines ESDs Total OC Total EC Electricity bill ($) SI (%)

1 1325.02 0 0 1325.02 700.46 2314.81 87.44

2 − 192.29 121.58 0 − 70.71 371.53 1145.1 89.38
3 336.22 226.44 0 562.66 334.93 1563.28 87.41
Sum 1468.95 348.02 0 1816.97 1406.92 5023.19 –

CS6

Micro-grid Costs ($) SHs

Power transaction Gas turbines ESDs Total OC Total EC Electricity bill ($) SI (%)

1 1209.16 0 0 1209.16 646.92 2213.51 87.44

2 − 221.59 121.58 0 − 100.01 355.44 1044.57 89.38
3 303.79 226.44 0 530.23 309.31 1443.85 85
Sum 1291.36 348.02 0 1639.38 1311.67 4701.93 –

CS7

Micro-grid Costs ($) SHs

Power transaction Gas turbines ESDs Total OC Total EC Electricity bill ($) SI (%)

1 1055.06 0 21.36 1076.42 532.78 2160.92 87.44

2 − 366.16 121.58 15.85 − 228.73 304.51 994.65 89.38
3 259.3 226.44 10.55 496.29 254.72 1405.73 85
Sum 948.2 348.02 47.76 1343.98 1092.01 4561.3 –

operating cost and emission cost of the gas turbine. ( ) ( )

Qline
(48)
l,t,s
⎧ base
bus
= Bl Vn,t,s bus
− Vm,t,s − Gl θbus bus
n,t,s − θm,t,s
⎪ 0 , vt,s < vci Or vt,s ≥ vco S
⎪
⎪
⎪
⎨ ( )
v − v ( )2 ( )2 ( )2
(41)
t,s ci
PW
w,t,s =
PW,max
w , vci ≤ vt,s < vr Pline + Qline ≤ Slmax (49)
⎪
⎪ vr − vci l,t,s l,t,s
⎪
⎪
⎩ W,max
Pw , vr ≤ vt,s < vco [( )2 ( )2 ]
Ploss
l,t,s = rl Pline
l,t,s + Qline
l,t,s (50)
Gt,s PV,max
PPV
pv,t,s = η
PV
P (42)
GSTD pv
V min ≤ Vn,t,s
bus
≤ V max (51)
PGT,min
g ≤ PGT
g,t,s ≤ PGT,max
g (43)
θmin ≤ θbus
n,t,s ≤ θ
max
(52)
− α max GT
g Pg,t,s ≤ QGT
g,t,s ≤αmax GT
g Pg,t,s (44) ⃒
⃒ ∑ ∑ ∑ ∑
PGrid
t,s ⃒ + PGT
g,t,s + PW
w,t,s + PPV
pv,t,s + PDch
e,t,s
(45)
GT GT GT n=1
Cg,t,s =π g Pg,t,s
g
g∈Δn w∈Δw
n
pv
pv∈Δn e∈Δen
( )
∑ ∑ Ploss
(53)
Net Ch line l,t,s
GT
Eg,t,s = πEm.GT
g PGT
g,t,s (46) = Pn,t,s + Pe,t,s + ϑl,n Pl,t,s +
2
e∈Δe n
l l∈Δn
In Eqs. (47) to (54), the formulation of linear AC power flow program ⃒ ∑ ∑( )
is shown [41]. Eqs. (47) and (48) model the relationship between the QGrid
⃒
QGT Net
ϑl,n Qline (54)
t,s ⃒ + g,t,s = PFn Pn,t,s + l,t,s
active (Pline
l,t,s ) and reactive (Ql,t,s ) powers passing through the lines taking
line n=1 g
g∈Δn l∈Δln

the size and angle of the voltage into account. Due to the fact that
voltage and network resistance values are in per unit basis, the active 3. Simulation results
and reactive powers passing through the lines are also calculated per
unit basis. In the Eq. (49), the thermal capacity of lines is modeled. Note 3.1. Initialization
that this equation is transformed to the linear form utilizing the piece­
wise linearization technique. In Eq. (50), the power transmission losses The results obtained from implementing the proposed three-level
are computed. Note that the piecewise method is adopted to linearize strategy on the test system are provided in this sub-section. The
the quadratic terms of Eqs. (49) and (50) [20]. Limitation of size and CPLEX solver is utilized to solve the problem in the GAMS as the pro­
angle of voltage are respectively expressed in Eqs. (51) and (52). Eq. posed strategy is formulated in the mixed-integer linear programming
(53) is provided to maintain the nodal balance of active power in the (MILP) format. Note that the CPLEX solver has a high speed for solving
network. Similarly, Eq. (54) is presented to maintain the nodal balance MILP optimization problems. The simulation is run on a system with a
of reactive power. Core i7 3.4 GHz processor with 12 GB internal memory. The general
( ) details of studied cases (CS) are provided in Table 2. As per this table, 7
Pline ( )
l,t,s bus
= Gl Vn,t,s bus
− Vm,t,s + Bl θn,t,s − θm,t,s (47) cases have been designed so that the effect of multi-objective problem
S base
modelling, operational uncertainties, IoT-based control of home

14
S. Fatemi et al. Journal of Energy Storage 67 (2023) 107632

Fig. 13. State of charge for a ESDs at CS5.

appliances, ESDs, and V2G services on the performance of the proposed
strategy can be investigated. Table 3 shows the input parameters of the
simulation. Information on IoT-enabled home appliances are given in
Table 4. Each SH has a 3-kW solar panel and a 10-kWh ESD, and its fixed
load peak demand is 3 kW. Besides, scenarios of input parameters are
displayed in Fig. 2a–d. It should be pointed out that the electricity price
curve presented in Fig. 2c is the average electricity price of the last 10
days, based on which SHs plan their operation.

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S. Fatemi et al. Journal of Energy Storage 67 (2023) 107632

Fig. 14. PEVs program in CS5 and CS6.

Fig. 15. Voltage curve in CS5 and CS6 at peak hour (21:00).

Fig. 16. MSP in CS 4 to CS7.

3.2. Studied test system
The test system on which CSs are implemented is displayed in Fig. 3.
This system is a modified 33-node distribution network comprising three
micro-grids. The peak levels of active and reactive powers are
respectively 3.715 MW and 2.3 MVAR. Information on node and
branches are as [42]. As Fig. 3 reflects, the network consists of three
decentralized micro-grids and a part of it is operated under the super­
vision of the distribution network operator. Each micro-grid, in addition
to gas turbines, has a number of DRERs integrated with ESDs, which

16
S. Fatemi et al.
Fig. 17. Voltage curve in CS6 and CS7 at peak hour (21:00).
cover a significant part of the electrical needs of its area. End-users
connected to micro-grids include regular users and IoT-enabled users.
Moreover, the distribution network is able to exchange power with the
upstream network through bus 1. The number of IoT-enabled users at
their connection point is shown in Fig. 1. Totally, there are 344 IoT-
enabled users and 177 PEVs in the network. The battery capacity of
each PEV is considered to be 70 kWh.
3.3. Results of CS1 and CS2
The numerical results of single-objective and dual-objective problem
solving are respectively tabulated in Tables 5 and 6. It is clear from the
numerical results that by solving the problem in a dual-objective format,
the OCs of micro-grids 2 to 3 are respectively increased by 8.49 % and
32.56 % while their emission cost are decreased significantly. As can be
observed from the tables, the operating costs of micro-grid 1 does not
change in in CS2 compared to CS1 as this micro-grid doesn't have gas
turbine. Totally, in CS2, micro-grids tried to buy more power from grid
since its emission penalty is lower than gas turbines. Note that the reason
for the lower penalty factor of exchange with the grid compared to gas
turbines is the generation of a significant part of the grid power by
DRERs. Moreover, a close examination of Tables 5 and 6 reveal that the
daily costs of SHs belonging to micro-grids 2 and 3 in CS2 have a relative
increase since they bought power at a higher price than CS1. According
to the tables, it is clear that the minimum level of SI of SHs has been met
in all micro-grids. Note that in CS1 and CS2, no changes are allowed to
the default consumption curve due to the absence of IoT facilities. A
Pareto curve is provided in Fig. 4 to compare OC and EC between CS1
and CS2. As per this figure, OC in CS2 increased by about 9.73 %
compared to its optimal value (obtained in CS1), while EC decreased by
more than 12.57 %.
Fig. 5 indicates gas turbines production rate in each micro-grids,
according to which the production capacity of gas turbines has
decreased in CS2 due to environmental restrictions. In Fig. 6, the
amounts of power purchase from border lines in each micro-grid are
compared in CS1 and CS2. The analysis of Fig. 6 reflects that the power
exchange rate of micro-grids 1 and 2 with the grid has increased in CS2
over CS1 to compensate for the deficit of gas turbine production. It can
also be seen that due to the absence of gas turbines in micro-grid 1, its
17
Journal of Energy Storage 67 (2023) 107632
power exchange is similar in CS1 and CS2.
3.4. Results of CS3
CS3 is designed to check the effect of operational uncertainties on the
numerical results of the proposed three-layer strategy where a stochastic
technique is used to incorporate the wind, solar and load uncertainties
into the problem. Table 7 tabulates the numerical results of CS3,
comparing them with CS2 shows the increase in OC of micro-grids and
also the electricity bill of SHs in CS3. Table 7 reveals that the micro-grids
in CS3 have purchased more power than CS2, which is caused by the
fluctuations of load and output of DRERs. In other words, the micro-grid
operator manages the risk of production and consumption imbalance by
increasing purchases from the grid. By comparing the results of CS3 and
CS2, it can be understood that micro-grid 1 has the highest increase in
OC in CS3, which is due to the renewable nature of all its generation
resources. On the other hand, it can be seen that micro-grid 3 had the
lowest increase in OC in CS3 over CS2, which is due to the smaller ca­
pacity of its DRERs compared to micro-grids 1 and 2. Table 7 also shows
that the decrease in the level of production of DRERs in CS3 has led to an
increase in carbon emissions in all the network and as a result, a 15.47 %
increase in the total EC compared to CS2.
Fig. 7 displays the generation rate of DRERs in CS2 and CS3, based on
which the generation rate of DRERs has decreased in different hours in
CS3. Fig. 8 displays the power exchange rate of micro-grids 1 to 3 with
the main grid in CS2 and CS3, which reflects the increase in the purchase
level in all micro-grids in CS3, especially in the high-demand period
(19:00 to 22:00). The reason for the higher power exchange rate in CS3
compared to CS2 is the relative increase in load demand of end-users as
well as the decrease in radiation intensity and wind speed. Fig. 9 pre­
sents the MSP curves in CS2 and CS3, the evaluation of which confirms
an increase in the MSP level in CS3 in all 24 h, especially the high-
demand period (19:00 to 22:00). This figure confirms that the MSP in­
creases as the purchase of power from the grid increases.
3.5. Results of CS4
Unlike CS1 to CS3, in CS4 the proposed strategy is solved by taking
IoT facilities into account. The presence of IoT makes a large number of
S. Fatemi et al. Journal of Energy Storage 67 (2023) 107632

end-users able to actively help the network in controlling the load de­
mand curve. Table 8 displays the numerical results obtained from
simulating CS4, according to which equipping end-users with IoT fa­
cilities has reduced the electricity bills of SHs by about 16.45 % in CS4
over CS3, due to the much greater flexibility of SHs to plan their ap­
pliances. On the other hand, the analysis of the numerical results clears
that the SI of SHs in CS4 has decreased by about 10 % over CS3, which is
due to shifting the operation time of some appliances to periods far from
the preferred interval of the residents. However, this reduction of SI in
CS4 is insignificant compared to the economic benefits of IoT facilities.
In Fig. 10, the network voltage curve is depicted to study the effect of
changing the operation pattern of IoT-enabled appliances on security
metrics. It can be seen that the change in the operating pattern of IoT-
enabled appliances has led to the improvement of the voltage level in
the high-demand period. Moreover, in Fig. 11, the activity time of the
IoT-enabled appliances of a SHs located in micro-grids are compared at
CS3 and CS4, which detailed evaluation reveals the shift of the activity
time of some appliances to periods outside the preferred interval of
residents in CS4. As can be seen from Fig. 11, the operating time of the
clothes dryer, microwave, and washing machine in CS4 have moved
away from the preferred interval of the residents, where instead of the
high-demand period, they are activated in the medium-demand period.
Fig. 12 is plotted in order to investigate the impact of IoT facilities on
MSP, where the analysis of the curves confirms the significant reduction
of MSP during the high-demand period in CS4 over CS3.

3.6. Results of CS5 to CS7

Fig. 18. Pareto front curves obtained for CS3 to CS7.
CS5 to CS7 investigate the effects of ESDs placed in main grid, micro-
grids, SHs and PEVs on numerical simulation results. The numerical
results related to the mentioned cases are tabulated in Table 9. By
comparing the results of CS5 with CS4, it is clear that the presence of
ESDs in SHs has reduced their electricity bills as well as the OCs of micro-
grids, which is due to the price-oriented performance of ESDs. Numer­
ical results confirm the decrease of 9.09 % of total electricity bill of SHs
in CS5 compared to CS4. Fig. 13 shows the performance schedule of
ESDs of SHs in different micro-grids, based on which the ESDs are
charged in low-demand periods whereas discharged in high-demand
periods. These programs prove that the performance of ESDs is fully
compatible with the price, since the electricity price is high in high-
demand periods and low in low-demand periods.
In CS6, in addition to ESDs of SHs, EV batteries are also actively
included in the operation. In other words, in this case, PEVs provide V2G
services according to the price pulse. The numerical results of Table 9
indicate a 6.39 % reduction in the electricity bill of SHs in CS6 compared
to CS5, which is due to the provision of V2G services by EV users. It
should be noted that the owners of the PEVs are residents of SHs. In
addition, the results reflect that the provision of V2G services has low­
ered the OC of micro-grids in CS6 over CS5, which is due to the reduction
of power purchase by micro-grids in the high-demand period. Fig. 14
depicts the performance curve of an EV battery in CS6, based on which
the EV user discharges the battery during the high-demand period to
reduce the level of the net-load curve of the system in addition to getting
a reward. On the other hand, it can be seen that the EV user charged the
battery in the early hours of the day when the net-load curve of the
network is at its lowest level. In addition to economic advantages, such a
performance significantly improves the technical and security metrics of
the network. In this regard, Fig. 15 illustrates that the provision of V2G
services has significantly increased the voltage level of the high-demand
period in CS6 over CS5.
In CS7, ESDs located in micro-grids and the main grid are enabled in
the operation. The results of Table 9 clear that these components have
effectively changed the operation results in CS7 compared to other
cases, the reason for this is the increase in operation flexibility due to the
high capacity of the grid-scale ESDs. The numerical results reflect a
decrease of 18.01 % and 16.74 % respectively in OC and EC of the

18
S. Fatemi et al.
system in CS7 compared to CS6. This is due to the purchase of less power
in the high-demand period as well as the lower generation rate of gas
turbines in CS7 compared to other cases. Fig. 16 displays the tremendous
impact of the grid-scale ESDs on reducing the MSP curve, especially in
the high-demand period. In addition, the network voltage curve in CS6
and CS7 is compared in Fig. 17, whose analysis mirrors the significant
effect of the grid-scale ESDs on improving the voltage level in the high-
demand period. Totally, the results confirm the impact of ESDs at all
levels, including the network, micro-grids, SHs and PEVs, on improving
the technical, economic and environmental criteria of the competitive
electricity markets.
Lastly, in Fig. 18a–e the Pareto front curves obtained for CS3 to CS7
are illustrated. Note that optimal points are marked in red. The vertical
axis shows the emission cost, while the horizontal axis shows the total
micro-grid cost. As can be seen, the consideration of uncertainties leads
to the solution moving away from the optimal point, while the IoT
mechanism, ESDs and V2G services increase the optimality of the
solution.
4. Conclusion
A three-level strategy for eco-environmental management of
competitive electricity markets among micro-grids was introduced in
this article, taking security, technical, economic and environmental
metrics into account. In this strategy, micro-grid operators built their
bidding strategy based on a dual-objective linear formulation aiming at
the simultaneous minimization of OC and EC. The weighted fuzzy
method was adopted to formulate the dual-objective optimization
problem of micro-grids, while the uncertainties were incorporated into
the problem by the SBS technique. The implementation of the intro­
duced strategy on a modified IEEE 33-node distribution network
comprising three micro-grids showed that the inclusion of environ­
mental criteria in the bidding strategy of micro-grids, despite raising the
MSP, dramatically reduced carbon emissions. In addition, the simulation
outputs revealed that equipping end-users with IoT facilities not only
reduced their electricity bills by 9.1 % but also reduced MSP by about
6.81 % during high-demand periods. The analysis of the effects of wind,
radiation and load uncertainties mirrored that the possible fluctuations
of production and consumption increased the daily costs of the system
by about 16.63 %. Although the results confirmed that considering
production and consumption fluctuations in electricity market planning
is essential to maintain the security of operation. Finally, the impact of
ESDs at different levels, including the main grid, micro-grids, SHs and
PEVs, was checked on the planning of the electricity market, and the
results revealed that the simultaneous presence of these components, in
addition to improving the grid voltage curve and reducing carbon
emissions, led to a 32.97 % reduction in total costs of the market.
CRediT authorship contribution statement
Saeid Fatemi: Investigation, Formal analysis, Validation, Writing -
Original draft.
Abbas Ketabi: Supervision, Reviewing and Editing.
Seyed Amir Mansouri: Conceptualization, Methodology, Software.
Declaration of competing interest
The authors declare that they have no known competing financial
interests or personal relationships that could have appeared to influence
the work reported in this paper.
Data availability
Data will be made available on request.
19
Journal of Energy Storage 67 (2023) 107632
Acknowledgments
This research has also benefited from the funding of the program
Strategic projects oriented to the ecological transition and digital tran­
sition with NextGenerationEU/PRTR funds of the Spanish Ministry of
Science and Innovation/State Research Agency (project ‘‘Local markets
for energy communities: designing efficient markets and assessing the
integration from the electricity system perspective (OptiREC)’’, with
reference number TED2021-131365B-C43.
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