Co-optimization of a multi-energy microgrid considering multiple services

The energy system is changing to accommodate emerging distributed energy resources. Grid-connected microgrids can be a means to coordinate distributed energy resources to aid integration, whilst also improving power system reliability. Microgrids can provide various grid services, i.e., energy arbitrage, frequency control ancillary services, and network reliability services. These services may improve business cases for microgrids when considering the relevant price signals in a transactive energy context. However, assessing the potential of microgrids to provide multiple grid services is challenging, particularly when inherent technologies draw flexibility from coupling different energy vectors in a multienergy context. This requires detailed modelling of energy resources and buildings within microgrids, as well as the markets and business cases. In the light of the above, this work proposes a microgrid multi-service co-optimization model, running with a five-minute resolution. This model identifies the response of microgrids to price signals related to different grid services. Particular contributions are found in novel transactive based formulations of different types of frequency control ancillary services modelling and reliability services modelling, taking into account of various distributed generation and heating technologies. Economic values of reliability services are estimated using sequential Monte Carlo simulations of network contingencies. The methodology is demonstrated through business case assessment, placing focus on conflicts and synergies between different services, with pragmatic case studies based on the Australian context.