Microgrid/Macrogrid Energy Exchange: A Novel Market Structure and Stochastic Scheduling

Michael Zachar, Prodromos Daoutidis

Research output: Contribution to journalArticle

37 Scopus citations


This paper explores the stochastic scheduling of microgrids where energy exchange with the macrogrid must be coordinated ahead of time. In particular, a market structure is proposed in which microgrid operators make day-ahead energy exchange commitments. Microgrids are fined for deviating too far from commitments and a maximum difference between commitments in subsequent hours is enforced. These constraints are included to reduce the burden placed on the macrogrid by distributed generation. Under this market structure, a scheduling problem is formulated for a microgrid system consisting of microturbines, a photovoltaic array, a battery bank, and a bi-directional connection to the macrogrid. Chance-constrained optimization is used to minimize operational cost and ensure the energy exchange commitments are met. The problem is transformed into a mixed integer linear program, and is solved to show that these commitments can be satisfied with a high level of certainty and to illustrate inherent tradeoffs between microgrid performance and level of regulation.

Original languageEnglish (US)
Article number7544607
Pages (from-to)178-189
Number of pages12
JournalIEEE Transactions on Smart Grid
Issue number1
StatePublished - Jan 2017


  • Energy management
  • optimization methods
  • power generation planning
  • power systems
  • stochastic systems

Fingerprint Dive into the research topics of 'Microgrid/Macrogrid Energy Exchange: A Novel Market Structure and Stochastic Scheduling'. Together they form a unique fingerprint.

  • Cite this