Economic Dispatch for Operating Cost Minimization under Real Time Pricing in Droop Controlled DC Microgrid

In this paper, an economic dispatch problem for total operation cost minimization in DC microgrids is formulated. An operating cost is associated with each generator in the
microgrid, including the utility grid, combining the cost-efficiency of the system with demand response requirements of the utility. The power flow model is included in the optimization problem, thus the transmission losses can be considered for generation dispatch. By considering the primary (local) control of the grid-forming converters of a microgrid, optimal parameters can be directly applied to this control level, thus achieving higher control accuracy and faster response. The optimization problem is
solved in a heuristic method. In order to test the proposed algorithm, a six-bus droop-controlled DC microgrid is used in the case studies. Simulation results show that under variable renewable energy generation, load consumption and electricity prices, the proposed method can successfully reduce the operating cost by dispatching economically the resources in the microgrid.