A new hierarchical coordination model for exchanging power among micro grids

A micro-grid (MG) is a localized organization of generation with a few loads, and they are becoming a more and more popular concept in the research community. With the passage of time, it is increasing the efficiency and reliability of the power systems. Both islanded mode and grid-connected mode (GCM) are used by MGs. MGs use the software application to replace their strength in order to meet the standards of GCM. However, line losses are considerable since MG and the macro station (MS) are located farther apart. Therefore, a hierarchical coordination model (HCM) is proposed for successfully replacing the power among MGs. Since some of the distances among the MGs are shorter than the distance between the MG and MS, HCM seeks to limit the power line losses through making hierarchical coalitions. In addition, a pricing scheme is proposed for encouraging the MGs to participate in the HCM. This pricing scheme is implemented along with the HCM, and both purchasing and selling costs of each MG are compared before and after coordination. Numerical simulations demonstrated that the recommended pricing scheme succeeds in lowering the cost of energy exchange and optimum energy distribution, thereby reducing the overall system cost. In addition, every MG has an energy storage system (ESS), and an analysis has been conducted to determine whether it affects line losses as well as the costs associated with buying and selling energy for each MG. The proposed HCM and the conventional non-coordination model (NCM) are compared. Effects are assessed, and a comparison indicates how successful the suggested HCM is. Results suggest that, in comparison to NCM, HCM has decreased electrical line losses. The results demonstrate that, in comparison to NCM, the proposed HCM model is a more economical means of facilitating energy exchange between microgrids; consequently, the model would significantly improve system efficiency. Power line losses were reduced by 69.7% because of the ESS integration, compared to conventional NCM. As a result of the enhanced energy exchange between MGs, HCM caused the energy purchasing costs to drop by 17.7%. Additionally, the pricing mechanism has been performing well and has improved the power exchange between MGs, which has helped to lower the load on the MG.