The increasing interest in integrating intermittent renewable energy sources into microgrids presents major challenges from the viewpoints of reliable operation and control. In this paper, the major issues and challenges in microgrid control are discussed, and a review of state-of-the-art control strategies and trends is presented; a general overview of the main control principles (e.g., droop control, model predictive control, multi-agent systems) is also included. The paper classifies microgrid control strategies into three levels: primary, secondary, and tertiary, where primary and secondary levels are associated with the operation of the microgrid itself, and tertiary level pertains to the coordinated operation of the microgrid and the host grid. Each control level is discussed in detail in view of the relevant existing technical literature.

Trends in Microgrid Control

Plug-in electric vehicles (PEVs) present environmental and energy security advantages versus conventional gasoline vehicles. In the near future, the number of plug-in electric vehicles will likely grow significantly in the world. Despite the aforementioned advantages, the connection of PEV to the power grid poses a series of new challenges for electric utilities. This paper proposes a comprehensive approach for evaluating the impact of different levels of PEV penetration on distribution network investment and incremental energy losses. The proposed approach is based on the use of a large-scale distribution planning model which is used to analyze two real distribution areas. Obtained results show that depending on the charging strategies, investment costs can increase up to 15% of total actual distribution network investment costs, and energy losses can increase up to 40% in off-peak hours for a scenario with 60% of total vehicles being PEV.

Assessment of the Impact of Plug-in Electric Vehicles on Distribution Networks

The recent development of efficient thermal prime movers for distributed generation is changing the focus of the production of electricity from large centralized power plants to local generation units scattered over the territory. The scientific community is addressing the analysis and planning of distributed energy resources with widespread approaches, taking into account technical, environmental, economic and social issues. The coupling of cogeneration systems to absorption/electric chillers or heat pumps, as well as the interactions with renewable sources, allow for setting up multi-generation systems for combined local production of different energy vectors such as electricity, heat (at different enthalpy levels), cooling power, hydrogen, various chemical substances, and so forth. Adoption of composite multi-generation systems may lead to significant benefits in terms of higher energy efficiency, reduced CO2 emissions, and enhanced economy. In this light, a key direction for improving the characteristics of the local energy production concerns the integration of the concepts of distributed energy resources and combined production of different energy vectors into a comprehensive distributed multi-generation (DMG) framework that entails various approaches to energy planning currently available in the literature. This paper outlines the main aspects of the DMG framework, illustrating its characteristics and summarizing the relevant DMG structures. The presentation is backed by an extended review of the most recent journal publications and reports.

Distributed multi-generation: A comprehensive view

The objective of this paper is to provide a review of distributed control and management strategies for the next generation power system in the context of microgrids. This paper also identifies future research directions. The next generation power system, also referred to as the smart grid, is distinct from the existing power system due to its extensive use of integrated communication, advanced components such as power electronics, sensing, and measurement, and advanced control technologies. At the same time, the need for increased number of small distributed and renewable energy resources can exceed the capabilities of an available computational resource. Therefore, the recent literature has seen a significant research effort on dividing the control task among different units, which gives rise to the development of several distributed techniques. This paper discusses features and characteristics of these techniques, and identifies challenges and opportunities ahead. The paper also discusses the relationship between distributed control and hierarchical control.

Distributed Control Techniques in Microgrids

Power networks are undergoing a fundamental transition, with traditionally passive consumers becoming ‘prosumers’ — proactive consumers with distributed energy resources, actively managing their consumption, production and storage of energy. A key question that remains unresolved is: how can we incentivize coordination between vast numbers of distributed energy resources, each with different owners and characteristics? Virtual power plants and peer-to-peer (P2P) energy trading offer different sources of value to prosumers and the power network, and have been proposed as different potential structures for future prosumer electricity markets. In this Perspective, we argue they can be combined to capture the benefits of both. We thus propose the concept of the federated power plant, a virtual power plant formed through P2P transactions between self-organizing prosumers. This addresses social, institutional and economic issues faced by top-down strategies for coordinating virtual power plants, while unlocking additional value for P2P energy trading. The rise of prosumers has led to creation of virtual power plants and peer-to-peer trading to help manage a diverse and distributed array of energy sources. This Perspective proposes the federated power plant, which combines these concepts to meet some of their individual challenges and offer new value.

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Using peer-to-peer energy-trading platforms to incentivize prosumers to form federated power plants

A concept is presented along with the overarching structure of the virtual power plant (VPP), the primary vehicle for delivering cost efficient integration of distributed energy resources (DER) into the existing power systems. The growing pressure, primarily driven by environmental concerns, for generating more electricity from renewables and improving energy efficiency have promoted the application of DER into electricity systems. So far, DER have been used to displace energy from conventional generating plants but not to displace their capacity as they are not visible to system operators. If this continues, this will lead to problematic over-capacity issues and under-utilisation of the assets, reduce overall system efficiency and eventually increase the electricity cost that needs to be paid by society. The concept of VPP was developed to enhance the visibility and control of DER to system operators and other market actors by providing an appropriate interface between these system components. The technical and commercial functionality facilitated through the VPP are described and concludes with case studies demonstrating the benefit of aggregation (VPP concept) and the use of the optimal power flow algorithm to characterise VPP

C. Ramsay

Papers

Virtual power plant and system integration of distributed energy resources