Decentralized Operation of Resource Constrained Microgrids — Multi-agent Demand-based Approach

Decreasing prices of PV and storage technologies have made these sources integral parts of rural electrification schemes. PV-rich microgrids with limited reserve capacity are being deployed as cost-effective solutions to electrify rural communities in developing countries. Operating primarily with PV based sources is challenging owing to the time-varying availability and continuously changing ratios between capacity and demand. Further different load agents may have varying preferences about consumption patterns. It is necessary to leverage some demand side flexibility by providing adequate system signals reflecting resource constraints or availability of cheap PV energy. Further, by enabling change in consumption patterns, the cost of the fixed capacity source can be dramatically reduced. This paper proposes using system frequency as a means to reflect constraints and incentivize changes to demand profiles without adding expensive communication infrastructure.