A Two-Stage Adaptive Supply-Demand Management Framework for Microgrids: Aging-Aware Asset Planning and Peer-to-Peer Negawatt Trading

This paper introduces a novel two-stage adaptive supply-demand management framework for microgrids (MGs), addressing the challenges of aging asset management and dynamic energy demand-supply interaction to enhance both operational efficiency and economic viability. The first stage integrates an aging-aware asset planning approach, optimizing the siting and sizing of distributed energy resources (DERs) while quantifying their performance degradation and increasing operation and maintenance (O&M) costs over time. This method avoids common issues in conventional planning such as cost underestimation and system adequacy overestimation. In the second stage, we implement a peer-to-peer (P2P) negawatt (nW) trading method, empowering end-users to actively adjust their controllable loads (CLs) to minimize energy procurement costs and adapt more effectively to demand and supply variations. The effectiveness of this framework is validated through simulations on a modified IEEE 33-bus system, demonstrating significant improvements in cost efficiency and operational reliability. These findings have important implications for future MG management, suggesting an effective and flexible approach to integrating aging-aware DERs and consumer participation in electricity markets.