Economic Source Allocation among Multiple Distributed Energy Resources in Regulatory Markets

Secure, reliable and economical solution for intermittent power problems is possible through active participation of converters powered by various distributed sources. This paper concerns with the allocation of resources based on pricing policy in regulatory markets. DERs at the bay level can participate in energy trading and ancillary services. Pricing signal from various resources is send to the station level central controller. The cheapest resource is then given the initiation signal to participate in power trading. The field controller gives multifunctional features to the converter at the bay level such that it exhibits bidirectional power transfer capability, load balancing and harmonics mitigation features. A utility management system where evaluations are done with priority on cost benefits allows customers to avail less expensive resources and also they get incentives for the ancillary services provided by their cheaper resources. Centralized operation of resources in a smart micro grid under varying energy prices is demonstrated. A MATLAB/ SIMULINK model has been developed with an inductive and nonlinear load to show the effectiveness of the proposed project