Uniform price-based framework for enhancing power quality and reliability of microgrids using Shapley-value incentive allocation method

Abstract

This paper presents an economical approach for reliability improvement, harmonic mitigation and loss reduction in microgrids and active distribution networks that include of the distributed generations (DGs) considering technical constraints. The proposed method is a stochastic approach based on the calculation of the locational marginal price (LMP) in each DG bus. The problem is as a game-theoretic that each DG is taken as a single player considering its contributions on the aforementioned objectives. In this regard, each player gets a financial incentive as incremental price, based on a fair method using cooperative game-theoretic sharing strategy. In other words, each DG that aligns its generation with the aforementioned objectives will increase the price of selling energy. This increase in prices will lead to higher profits. Therefore, DGs are interested in volunteering to accomplish network goals. As a tool for system management, the proposed method can control the impact of the pricing in the form of incentives to satisfy each objective depending on its decision in the incentive allocation procedure. To obtain a more realistic framework, demands are considered as the uncertainty parameters. To validate the proposed method, it is evaluated on the real Taiwan Power Company (TPC) network. The promising results indicate that the total loss is decreased by 54.5%, harmonics are mitigated by 12.3% and the reliability is improved by 12.6%.