A robust model of local energy market under a security constraint-based approach for distribution system operator and multi-energy microgrids

Local energy market formation would change the absorption and injection of power at different buses and make it essential to design new market structures according to the security constraints of the system. Multi-Energy Micro-Grids (MEMG) with heat and electrical demand and combined heat and power units (CHP) influence the electrical energy trading scheduling according to the allocated capacity to the heat demands. Providing more accurate models of energy trading would improve the estimation of energy trading schedules to help maintain system operating conditions. The robust optimization provides a more accurate estimation of operating costs for the Distribution System Operator (DSO) under considering the effects of upstream market uncertainty, which encourages the DSO to trade energy with MEMG and improve the energy trading of the local market. The results of the simulations have shown that the uncertainty of the real-time market can increase the operating costs of DSO by 16.34%, and on the other hand, by intensifying the local energy market, it increases the income of MEMGs up to 44.4%. The IEEE 33 bus test system with four connected MEMGs is studied for simulation.