An Energy Management System Capable of Microgrid Flexibility Evaluation to Support Demand Bidding

Demand Bidding (DB) is one of the programs that allow microgrid owners to provide Demand Response (DR). However, the DR bid formulation involves risks, such as technical infeasibility, cost ineffectiveness, and uncertainty on the actual DR service request. Furthermore, providing flexibility through load variations could be inconvenient. This paper proposes an Energy Management System (EMS) capable of microgrid flexibility evaluation to support DB. The EMS only leverages storage flexibility without changing the load profile. After computing the power flows that minimize the cash flow, it evaluates microgrid flexibility in terms of 1) possible deviations from the optimal profile of the power exchanged with the grid, and 2) the related incremental cost. This information allows microgrid owners to assess whether it is worth bidding for DR services and helps formulate the bid. Thus, the user is safeguarded from all the DB risks. The proposed technique is assessed considering the microgrid of an industrial hydrogen facility as a case study.