Closed loop price signal based market operation within Microgrids

Danny Pudjianto, Pierluigi Mancarella, Chin Kim Gan, Goran Strbac

    Research output: Contribution to journalArticlepeer-review


    Within a general Microgrid framework, this paper presents a model to simulate closed loop energy and ancillary services markets operated by a Microgrid Central Controller (MGCC) and to investigate the performance of such a market mechanism in managing disturbances both within and outside the Microgrid cell. The proposed approach can be seen as an alternative to a more traditional control approach in which the central operator optimises the dispatch of all generators taking into account their bids and then instructing them to produce their outputs at the specified prices according to merit order and network constraints. In the alternative approach discussed here, this dispatch decision is decentralised to each controllable unit. The central operator only influences the decision taken by each unit via price signals. The main advantage of the approach is to preserve the independency of the local controllers and to decentralise the operation decision, making the system more able to cope with a large number of generating units. The performance of the proposed market mechanism is examined via different case studies that simulate the control actions of MGCC, micro-sources and controllable loads in managing small and large disturbances within and outside the Microgrid cell. © 2010 John Wiley & Sons, Ltd.
    Original languageEnglish
    Pages (from-to)1310-1326
    Number of pages16
    JournalEuropean Transactions on Electrical Power
    Issue number2
    Publication statusPublished - Mar 2011


    • closed loop control
    • Microgrids
    • optimal power flow


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