Decentralized Energy Management System for Networked Microgrids in Grid-Connected and Islanded Modes

This paper proposes a decentralized energy management system for the coordinated operation of networked microgirds (MGs) in a distribution system. In the grid-connected mode, the distribution network operator and each MG are considered as distinct entities with individual objectives to minimize their own operation costs. It is assumed that both dispatchable and renewable energy source-based distributed generators (DGs) exist in the distribution network and the networked MGs. In order to coordinate the operation of all entities, we apply a decentralized bi-level algorithm to solve the problem with the first level to conduct negotiations among all entities and the second level to update the non-converging penalties. In the islanded mode, the objective of each MG is to maintain a reliable power supply to its customers. In order to take into account the uncertainties of DG outputs and load consumption, we formulate the problems as two-stage stochastic programs. The first stage is to determine base generation setpoints based on the forecasts and the second stage is to adjust the generation outputs based on the realized scenarios. Case studies of a distribution system with networked MGs demonstrate the effectiveness of the proposed methodology in both grid-connected and islanded modes.