Micro-grid

Course code – EEDLO6022

Introduction
General layout of electricity networks.
• Power station may be located near a fuel source, at a dam site (to take advantage of renewable
energy sources), and are often located away from heavily populated areas. The electric power
which is generated is stepped up to a higher voltage at which it connects to the electric power
transmission net.

• The bulk power transmission network will move the power long distances, sometimes across
international boundaries, until it reaches its wholesale customer (usually the company that
owns the local electric power distribution network).

• On arrival at a substation, the power will be stepped down from a transmission level voltage
to a distribution level voltage.

• As it exits the substation, it enters the distribution wiring. Finally, upon arrival at the service
location, the power is stepped down again from the distribution voltage to the required service
voltage(s).

• Electrical grids vary in size from covering a single building through national grids which
cover whole countries, to transnational grids which can cross continents.
What is grid?

An electrical grid is
an interconnected
network for It consists of
delivering electricity
from producers to
consumers.

high voltage
transmission
Generating stations
lines that
that produce
carry power from
electrical power,
distant sources to
demand centres
 Electrical Grid
• Definition: Electrical grid or power grid is defined as the network
which interconnects the generation, transmission and distribution
unit.

 It supplies the electrical power from generating unit to the distribution

unit.

 A large amount of power is transmitted from the generating station to

load centre at 220kV or higher.

 The network form by these high voltage lines is called the super grid.
The super grid feeds the sub-transmission network operating at
132kV or less.
 Types of Electrical Grid
• The power station of the grid is located near the fuel source
which reduces the transportation cost of the system. But it is
located far away from the populated areas.
• The power which is generated at high voltage is stepped down
by the help of step down transformer in the substation and then
supply to the consumers. The electrical grid is mainly
classified into two types. They are
• Regional Grid – The Regional grid is formed by
interconnecting the different transmission system of a
particular area through the transmission line.
• National Grid – It is formed by interconnecting the different
regional grid.
 Reason for an Interconnection
• The interconnection of the grid provides the best use
of power resource and ensures great security to supply.
• It makes the system economical and reliable. The
generating stations are interconnected for reducing the
reserve generation capacity in each area.
• If there is a sudden increase in load or loss of
generation in a zone, then it borrows from the adjacent
interconnected area.
• But for the interconnections of the network certain
amount of generating capacity known as the spinning
reserve is required. The spinning reserve consists
generator running at normal speed and ready to supply
power instantaneously.
• The interconnection of an AC system has suffered from the
following problems.
• The interconnection of the two AC networks is the synchronous
tie. The frequency disturbances in one system are transferred to the
other system.
• The power swings in one system affect the other system. Large
power swing in one system may result in frequent tripping due to
which major fault occurs in the system. This fault causes complete
failure of the whole interconnected system.
• There is an increase in the fault level if an existing AC system is
connected with the other AC system with an AC tie line. This is
because the additional parallel line reduces the equivalent reactance
of the interconnected system
• If the two AC system are connected to the fault line, then the fault
level of an each AC system remains unchanged.
 Question in mind ?

• What is the need of micro grid?

• What is micro grid?
• Definition
• Sources of micro grid
• Types of micro grid
• Advantages
• Structure
 What is the need of micro grid?
 Around the world, conventional power system is facing the problems of
gradual depletion of fossil fuel resources, poor energy efficiency and
environmental pollution.
 These problems have led to a new trend of generating power locally at
distribution voltage level by using non-conventional/renewable energy
sources like natural gas, biogas, wind power, solar photovoltaic cells, fuel
cells, combined heat and power (CHP) systems, microturbines, and Stirling
engines and their integration into the utility distribution network.
 This type of power generation is termed as distributed generation (DG) and
the energy sources are termed as distributed energy resources (DERs).
 The term „Distributed Generation‟ has been created to distinguish this
concept of generation from centralized conventional generation.
 The distribution network becomes active with the integration of DG
and hence is termed as active distribution network.
 Why integration of distributed generation?
• In spite of several advantages provided by conventional power systems, the
following technical, economic and environmental benefits have led to gradual
development and integration of DG systems
1. Due to rapid load growth, the need for increase of conventional generation brings
about a continuous depletion of fossil fuel reserve. Therefore, most of the
countries are looking for non-conventional/renewable energy resources as an
alternative.
2. Reduction of environmental pollution and global warming acts as a key factor in
preferring renewable resources over fossil fuels
3. DG provides better scope for setting up co-generation, tri-generation or CHP
plants for utilising the waste heat for industrial/domestic/commercial applications.
This increases the overall energy efficiency of the plant and also reduces thermal
pollution of the environment
4. Due to lower energy density and dependence on geographical conditions
DERs are generally modular units of small capacity. These are
geographically widespread and usually located close to loads. Since power is
generated at low voltage (LV),it is possible to connect a DER separately to
the utility distribution network or they may be interconnected in the form of
Micro-grids
5. Stand-alone and grid-connected operations of DERs help in increasing
generation , thereby improving overall power quality and reliability
 Active distribution network
• Electricity networks are in the era of major transition from stable
passive distribution networks with unidirectional electricity
transportation to active distribution networks bidirectional
electricity transportation.
• Distribution networks without any DG units are passive since the
electrical power is supplied by the national grid system to the
customers embedded in the distribution networks.
• It becomes active when DG units are added to the distribution
system leading to bidirectional power flows in the networks.
• Active distribution networks need to incorporate flexible and
intelligent control with distributed intelligent systems.
• In order to harness clean energy from renewable DERs, active
distribution networks should also employ future network
technologies leading to smart-grid or Micro-grid networks.
 Concept of Micro grid
 Micro-grids are small-scale, LV combined heat and power (CHP)
supply networks designed to supply electrical and heat loads for a
small community, such as a housing estate or a suburban locality, or
an academic or public community such as a university or school, a
commercial area, an industrial site, a trading estate or a municipal
region.
 Micro-grid is essentially an active distribution network because
it is the corporation of DG systems and different loads at
distribution voltage level.
 The generators or micro-sources employed in DERs integrated
together to generate power at distribution voltage.
 From operational point of view, the micro sources must be equipped
with power electronic interfaces (PEIs) and controls to provide the
required flexibility to ensure operation as a single aggregated system
and to maintain the specified power quality and energy output.
 This control flexibility would allow the Micro-grid to present itself
to the main utility power system as a single controlled unit that
meets local energy needs for reliability and security.
Difference between conventional grid & Micro-
grid
The key differences between a Micro-grid and a conventional power plant are
as follows:
• Micro-sources are of much smaller capacity with respect to the large
generators in conventional power plants.
• Power generated at distribution voltage can be directly fed to the utility
distribution network.
• Micro-sources are normally installed close to the customers‟ premises so
that the electrical/heat loads can be efficiently supplied with satisfactory
voltage and frequency profile and negligible line losses. Micro-grid are
usually renewable/non-conventional.
 The technical features of a Micro-grid make it suitable for supplying power
to remote areas of a country where supply from the national grid system is
either difficult to avail due to the topology or frequently disrupted due to
severe climatic conditions or man-made disturbances.
 From grid point of view, the main advantage of a Micro-grid is that it
is treated as a controlled unit within the power system. It can be
operated as a single aggregated load.
 This ascertains its easy controllability and compliance with grid rules and
regulations without hampering the reliability and security of the power
utility.
 From customers‟ point of view, Micro-grids are beneficial for
locally meeting their electrical/heat requirements.
 They can supply uninterruptible power, improve local reliability,
reduce feeder losses and provide local voltage support.
 From environmental point of view, Micro-grids reduce
environmental pollution and global warming through utilisation of
low-carbon technology.
 However, to achieve a stable and secure operation, a number of
technical, regulatory and economic issues have to be resolved before
Micro-grids can become common place.
 Some problem areas that would require due attention are the
intermittent and climate-dependent nature of generation of the
DERs, low energy content of the fuels and lack of standards and
regulations for operating the Micro-grids in synchronism with
the power utility.
 The study of such issues would require extensive real-time and off
line research, which can be taken up by the leading engineering and
research institutes across the globe.
 Definition of Micro-grid
 A micro-grid is a group of interconnected loads and distributed
energy resources within clearly defined electrical boundaries
that acts as a single controllable entity with respect to the grid
and that connects and disconnects from such grid to enable it
to operate in both grid-connected or “island” mode.

This definition of micro-grids has been adopted by the U.S.

Department of Energy (DOE) as well as EPRI.
 A micro-grid is defined as a system consisting of generation
sources, focuses on the use of renewable energies in the
majority, storage equipment, and electrically connected loads, to
meet a determined energy demand. It can operate connected to
the main grid in medium voltage or low voltage, or isolated from
the same
 Energy sources in a micro-grid can be renewable (e.g.
photovoltaic, wind, thermal and geothermal generation,
biomass, tidal and cogeneration, etc.), conventional in situ (e.g.
diesel thermal plants) or the electric grid
 What is a Micro-grid?
the definition from the EU research projects [7,8] is used:
• Micro-grids comprise LV distribution systems with distributed energy
resources (DER) (micro-turbines, fuel cells, PV, etc.) together with storage
devices (flywheels, energy capacitors and batteries) and flexible loads.
Such systems can be operated in a non-autonomous way, if interconnected
to the grid, or in an autonomous way, if disconnected from the main grid.
The operation of micro-sources in the network can provide distinct benefits
to the overall system performance, if managed and coordinated efficiently.
• There are three major messages delivered from this definition:
 Micro-grid is an integration platform for supply-side (micro-generation),
storage units and demand resources (controllable loads) located in a local
distribution grid.
• In the micro-grid concept, there is a focus on local supply of electricity to
nearby loads, thus aggregator models that disregard physical locations of
generators and loads (such as virtual power plants with cross-regional
setups) are not micro-grids.
• A micro-grid is typically located at the LV level with total installed micro-
generation capacity below the MW range, although there can be exceptions:
parts of the MV network can belong to a micro-grid for interconnection
purposes.
 A micro-grid should be capable of handling both normal state (grid-
connected) and emergency state (islanded) operation.
– The majority of future micro-grids will be operated for most of
the time under grid connection – except for those built on
physical islands – thus, the main benefits of the micro-grid
concept will arise from grid-connected (i.e. “normal”)
operating states.
– In order to achieve long-term islanded operation, a micro-grid
has to satisfy high requirements on storage size and capacity
ratings of micro-generators to continuous supply of all loads.

 The difference between a micro-grid and a passive grid penetrated

by micro-sources lies mainly in terms of management and
coordination of available resources.
 A micro-grid operator is more than an aggregator of small generators, or a
network service provider, or a load controller, or an emission regulator – it
performs all these functionalities and serves multiple economic, technical
and environmental aims
• One major advantage of the micro-grid concept over other
“smart” solutions lies in its capability of handling conflicting
interests of different stakeholders, so as to arrive at a globally
optimal operation decision for all players involved.

•A micro-grid appears at a large variety of scales: it can be

defined at the level of a LV grid, a LV feeder or a LV house –
examples are given in Figure 1.1.
• As a micro-grid grows in scale, it will likely be equipped with
more balancing capacities and feature better controllability to
reduce the intermittencies of load and RES.
• In general, the maximum capacity of a micro-grid (in terms
of peak load demand) is limited to few MW
 What is not micro grid?
•The micro-grid concept is
further clarified by examples that
highlight three essential micro-
grid features: local load, local
micro-sources and intelligent
control.
•In many countries
environmental protection is
promoted by the provision of
carbon credits by the use of RES
and CHP technologies; this
should be also added as a micro-
grids feature.
•Absence of one or more features
would be better described by DG
interconnection cases or DSI
cases.
 What is not micro grid?
• In the following section, some typical misconceptions
regarding micro-grids are clarified:
• Micro-grids are exclusively isolated (island) systems.
• Micro-grids have the capability to shift to islanded
operation in emergency situations, thus increasing
customer reliability, but they are mostly operated
interconnected to the upstream distribution network.
• Small island systems are inherently characterized by
coordinated control of their resources, thus, depending
on their size and the extent of DER penetration and
control, they can be also termed as micro-grids
1) Customers who own micro-sources build a micro-grid. DG penetration is
indeed a distinct micro-grid feature, but a micro-grid means more than passive
tolerance of DG (also known as “fit and forget”) and needs active supervision,
control and optimization.
2) Micro-grids are composed of intermittent renewable energy resources, so they
must be unreliable and easily subject to failures and total black-outs.
3) A micro-grid can offset RES fluctuation by its own storage units (when
islanded) or external generation reserves(when grid-connected). Moreover, the
micro-grid‟s capability of transferring from grid-connected to island mode
actually improves security of supply
4) Micro-grids are expensive to build, so the concept will be limited to field tests
or only to remote locations.
5) The micro-grid concept is just another energy retailer advertising scheme to
increase his income.
6) The micro-grid controllers will force consumers to shift their demand,
depending on the availability of renewable generation, e.g. to switch on the
washing machine at home only when the sun is shining or the wind is blowing.
7) A micro-grid is such a totally new idea, that system operators need to rebuild
their entire network.
8) Micro-grid loads will never face any supply interruptions.
A typical Micro-grid configuration
• A typical Micro-grid configuration is shown in Figure 1.1.
• It consists of electrical/ heat loads and micro-sources connected through an LV
distribution network.
• The loads (especially the heat loads) and the sources are placed close together to minimize
heat loss during heat transmission. The micro-sources have plug-and-play features. They are
provided with PEIs to implement the control, metering and protection functions during stand-
alone and grid-connected modes of operation. These features also help for continuous
transition of Micro-grid from one mode to another.
• The Micro-grid consists of three radial feeders (A, B and C) to supply the electrical and heat
loads. It also has two CHP and two non-CHP micro-sources and storage devices.
• Micro-sources and storage devices are connected to feeders A and C through micro-source
controllers (MCs). Some loads on feeders A and C are assumed to be priority loads (i.e.
requiring uninterrupted power supply), while others are non-priority loads. Feeder B,
however, contains only non-priority electrical loads.
• The Micro-grid is coupled with the main medium voltage (MV) utility grid (denoted as „main
grid‟) through the PCC (point of common coupling) circuit breaker CB4 as per standard
interface regulations. CB4 is operated to connect and disconnect the entire Micro-grid from
the main grid as per the selected mode of operation.
• Feeders A, B and C can however be connected and disconnected by operating breakers CB1,
CB2 and CB3, respectively.
• The micro-sources on feeders A and C are placed quite apart from the Micro-grid bus to
ensure reduction in line losses, good voltage profile and optimal use of waste heat.
• Although the control of power flow and voltage profile along radial feeders is quite
complicated when several micro-sources are connected to a common radial feeder and not to a
common generator bus, this configuration is necessary to avail the plug-and-play feature of
the micro-sources.
 • This can be achieved by either
• The Micro-grid is operated in two• (i) disconnecting the entire Micro-
modes: grid by opening CB4 or
• (1) grid-connected mode and
• (2) stand alone mode. • (ii) disconnecting feeders A and C by
• In grid-connected mode, the Micro- opening CB1 and CB3.
grid remains connected to the main• For option (i), the Micro-grid will
grid either totally or partially, and operate as an autonomous system
imports or exports power from or to with all the micro-sources feeding all
the main grid. the loads in feeders A, B and C,
• In case of any disturbance in the• whereas for option (ii), feeders A and
main grid, the Micro-grid switches C will supply only the priority loads
over to stand-alone mode while still while feeder B will be left to ride
feeding power to the priority loads. through the disturbance.
General Structure Of Micro-grid
Interconnection of Micro-grids
• Since Micro-grids are designed to generate power at distribution voltage level along with
utilisation of waste heat, they have restricted energy handling capability.
• Therefore, their maximum capacity is normally restricted to approximately 10 MVA
as per IEEE recommendations.
• Hence, it is possible to supply a large load from several Micro-grids through a common
distribution network, by splitting the load into several controllable load units, with each
unit being supplied by one Micro-grid.
•In this way, Micro-grids can be interconnected to form much larger power pools for
meeting bulk power demands.
•For interconnected Micro-grids, each CC must execute its control in close co-ordination
with the neighbouring CCs.
•Thus, an interconnected Micro-grid would achieve greater stability and controllability
with a distributed control structure. It would also have more redundancy to ensure
better supply reliability.
 Technical and economical advantages of Micro-grid
• The development of Micro-grid is very promising for the electric energy industry
because of the following advantages:
• Environmental issues – Micro-grids would have much lesser environmental impact
than the large conventional thermal power stations. However, it must be mentioned
that the successful implementation of carbon capture and storage (CCS) schemes
for thermal power plants will drastically reduce the environmental impacts.
Nevertheless, some of the benefits of Micro-grid in this regard are as follows:
(i) Reduction in gaseous and particulate emissions due to close control of the
combustion process may ultimately help to fight global warming.
(ii) Physical closeness of customers with micro-sources may help to increase
the awareness of customers towards careful energy usage.
• Operation and investment issues – Reduction of physical and electrical distance
between micro-source and loads can contribute to:
(i) Improvement of reactive support of the whole system, thus enhancing the
voltage profile.
(ii) Reduction of T&D feeder overcrowding.
(iii) Reduction of T&D losses to about 3%.
(iv) Reduction/post-ponement of investments in the expansion of transmission
and generation systems by proper asset management.
 Technical and economical advantages of Microgrid
• Power quality – Improvement in power When combined into a Micro-grid, the
quality and reliability is achieved due to: generated electricity can be shared locally among the
(i) Decentralization of supply. customers, which again reduces the need to
(ii) Better match of supply and demand. import/export power to/from the main grid over
longer feeders.
(iii) Reduction of the impact of large-scale
transmission and generation outages.
(iv)Minimization of interruptions and• Market issues – The following advantages are
enhancement of the restoration process through attained in case of market participation:
black start operations of micro-sources. • (i) The development of market-driven operation
• Cost saving – The following cost savings are procedures of the Micro-grids will lead to a
achieved in Micro-grid: significant reduction of market power exerted by
the established generation companies.
(i) A significant saving comes from utilisation of
waste heat in CHP mode of operation. Moreover, as• (ii) The Micro-grids may be used to provide
the CHP sources are located close to the customer auxcillary services.
loads, no substantial infrastructure is required for• (iii) Widespread application of modular plug-
heat transmission. This gives a total energy and-play micro-sources may contribute to a
efficiency of more than 80% as compared to a reduction in energy price in the power market.
maximum of 40% for a conventional power system. • (iv) The appropriate economic balance between
(ii) Cost saving is also effected through integration network investment and DG utilisation is likely
of several micro-sources. As they are locally placed to reduce the long-term electricity customer
in plug-and-play mode, the T&D costs are prices by about 10%.
drastically reduced or eliminated.
 Micro-grids of All Shapes and Sizes

For the majority of microgrids, this

involves combining a bulk energy
source (such as a PV array), energy
storage, and dispatchable generation
(such as diesel or CHP).
• A microgrid is a local electrical network that (1) comprises power generation units,
power consumption units, and a means of delivering power from the generation
units to the consumption units, (2) may be connected to a larger utility power
system, and (3) operates to balance the power supply and demand within the
microgrid [3].
• The local electrical network forming the microgrid may include a network within a
building or a group of buildings; a section of a distribution network; a group of
circuits downstream of a distribution substation; the entirety of an electric
customer’s facility; the electrical network of a residential subdivision, a district, an
industrial park, a remote village, a ship, or an airplane; and so on.
• The network would include electric power generation units such as conventional
internal combustion driven alternators, micro turbines, fuel cell generators, solar
thermal power generators, solar photovoltaic installations, induction generators,
wind turbine generators, combined heat and power generators, etc. The network
would also contain power consumption units including motors, heating and
lighting loads, industrial process loads as well as emerging bidirectional loads like
electric vehicles with V2G capabilities.
• Furthermore, the network would contain appropriate feeder circuits, branch
circuits, transformers, grounding, switchgear, and protection elements to provide
a safe and reliable means of providing electricity to the power consumption units
from the power generation units, while possibly importing and/or exporting power
from a large-scale electrical utility that may be connected to the network.
 Sources of Micro-grid
• Renewable or non-conventional electricity generators employed in DG systems or
Micro-grids are known as distributed energy resources (DERs) or micro-sources.
• One major aim of Micro-grids is to combine all benefits of non-conventional/
renewable low-carbon generation technologies and high-efficiency combined heat
and power (CHP) systems.
• In this regard, the CHP-based DERs facilitate energy efficient power generation by
capturing waste heat while low-carbon DERs help to reduce environmental
pollution by generating clean power.
• Prospective DERs range from micro-CHP systems based on Stirling engines, fuel
cells and micro-turbines to renewables like solar photovoltaic (PV) systems, wind
energy conversion systems (WECS) and small-scale hydroelectric generation.
• Choice of a DER very much depends on the climate and topology of the
region and fuel availability.
• Possibilities of using bio-fuels and application of various storage technologies like
flywheel batteries and ultra-capacitors are also being investigated across the globe
in the field of Micro-grid research.
• Most of the countries are coming up with schemes to support the exploitation of
the renewable/non-conventional energy resources for meeting up global carbon
commitment.
 Sources of Micro-grid

• This briefly describes the following DER

technologies:
• Combined heat and power (CHP) systems
• Wind energy conversion systems (WECS)
• Solar photovoltaic (PV) systems
• Small-scale hydroelectric generation
• Other renewable energy sources
• Storage devices.
 Combined heat and power (CHP) systems
• CHP or cogeneration systems are most promising as DERs
for Micro-grid applications.
• Their main advantage is energy-efficient power generation
by sensible utilisation of waste heat.
• Micro-CHP sets are basically micro-turbines coupled to
single-shaft, high-speed (50,000–100,000 rpm)
permanent magnet synchronous machines with airfoil or
magnetic bearings.
• They are provided with power electronic interfaces for
connection to the electrical loads.
• They also have their own heat recovery systems for low and
medium temperature heat extraction. Micro-CHP sets are
reliable, robust and cheap.
• They are available in the range of 10-100 kW capacity. The
primary fuel is natural gas, propane or liquid fuel, which
permits clean combustion with low particulates
 Combined heat and power (CHP) systems
Micro-grids can secure the following major advantages by using
micro-CHP plants:
1. Since transportation of electricity is far easier and more cost-
effective than that of heat, it is much more suitable to place
micro-CHP plants near heat loads than electrical loads. Micro-
grid permits this energy optimal placement of CHP plants to
achieve full utilisation of heat. In case of necessity, fuel cells
can also be used in the CHP plants for better utilisation of the
generated heat.
2. The scale of heat generation for individual units is small.
Therefore, micro-CHP plants have greater flexibility in
matching several small heat loads.
3. Technically, a Microgrid can be designed with a judicious mix
of waste and non-waste heat producing generators so as to
optimise the combined generation of heat and electricity. In
spite of the aforesaid flexibility, chances are still there of having
mismatch in generating a proper mix of heat and electricity.
Hence, attention must be paid to enhance this flexibility.
 Wind energy conversion systems (WECS)
• WECS convert wind energy into electrical energy. The principal component of
WECS is the wind turbine. This is coupled to the generator through a multiple-ratio
gearbox. Usually induction generators are used in WECS. The main parts of a wind
turbine are the tower, the rotor and the nacelle. The nacelle accommodates the
transmission mechanisms and the generator. Rotor may have two or more blades.
Wind turbine captures the kinetic energy of wind flow through rotor blades and
transfers the energy to the induction generator side through the gearbox. The
generator shaft is driven by the wind turbine to generate electric power. The
function of the gearbox is to transform the slower rotational speeds of the wind
turbine to higher rotational speeds on the induction generator side. Output
voltage and frequency is maintained within specified range, by using supervisory
metering, control and protection techniques.
• Wind turbines may have horizontal axis configuration or vertical axis configuration.
The average commercial turbine size of WECS was 300 kW until the mid-1990s, but
recently machines of larger capacity, up to 5 MW, have been developed and
installed.
• The output power of a wind turbine is determined by several factors such as
wind velocity, size and shape of the turbine.
• The power developed is given by
• P=(1/2) Cp*ρ*V3*A
 Area of Application
 Fuel cell with inverter

Most fuel cells are used to produce premium power and use inverter-based
interconnection systems. These units use software algorithms to provide functions such
as protective relaying.

51
 Area of Application
 PV system with inverter

Small PV systems use inverter-based interconnection systems, and some state public utility
commissions require utilities to allow for net-metering systems.

52
 Area of Application
 Wind turbine with generator

Although, large wind turbines and multiple-wind turbine “wind farms” do not fit the
definition of DR because they are directly connected to the transmission system via a
dedicated substation or portion of a transmission substation. They are more like central-
station power plants. Smaller wind turbines typically use inverters. Figure shows a wind
turbine system with net metering.

53
 Renewable Energy Sources
Biomass-Bioenergy
• Bioenergy is the energy derived from organic matter such as corn, wheat, soybeans,
wood, and residues that can produce chemicals and materials.
• Bio power is obtained from a process called gasification, converting gas to gas
turbines to generate electricity.
• Biomass can be converted directly into fluid fuels such as ethanol, alcohol or biodiesel
derived from corn ethanol. Biomass plants are commercially available in the United
States for up to 11GW of installed capacity. Biomass power ranges from 0.5 GW to
3.0 GW using landfill gas and forest products, respectively.
• Biomass has traditionally been used for domestic cooking and heating in developing
countries. It can produce power only when sufficient bio products are available and
the conversion process is undertaken. Biomass produces CO2 and other emissions.
Small and Micro Hydropower
• Hydropower is by far the largest renewable source of power/energy [8] . Small
hydropower systems vary from 100 kW to 30 MW while micro hydropower plants are
smaller than 100 kW. Small hydropower generators work in variable speed because of
water flow. Induction motors provide a generator for a turbine system. The hydraulic
turbine converts the water energy to mechanical rotational energy. Small and micro
hydropower systems are RER optimizations to enhance the smart grid.
 Renewable Energy Sources
Geothermal Heat Pumps
• This form of power is based on accessing the underground steam or
hot water from wells drilled several miles into the earth. Conversion
occurs by pumping hot water to drive conventional steam turbines
which drive the electrical generator that produces the power. The water
is then recycled back into earth to recharge the reservoir for a
continuous energy cycle.
• There are several types of geothermal power plants including dry
steam, flash stream, and binary cycle. Dry steam plants draw water
from the reservoirs of steam, while both flash steam and binary cycle
plants draw their energy from the recycled hot water reservoir.

• Various applications of geothermal power include heat pumps,

agriculture, fishing, farming, and food processing. Geothermal projects
require significant upfront capital investment for exploration, drilling
wells, and equipment. Exploration risk and environmental impacts are
considered in geothermal power plant projects.
• Other renewable energy sources
• Landfill gas, biomass, municipal waste, etc., are treated as other
renewable energy sources for generation of electricity.
• The location of these generators is determined by the availability of
these resources.
• Major drawbacks of these resources are low energy density, scarcity
of resource and difficulty in storing them in large quantities.
• Since storage is not cost-effective, these generators are normally of
small capacity and operate in load pockets close to the resources.
• A competitive arrangement, NFFO (Non-Fossil Fuel Obligation) was
created in the UK to encourage generation from renewable energy
resources in the late 1990s.
• The NFFO scheme has been replaced by another support mechanism
named as Green Certificates in the year 2000, imposing some
obligation on the electricity suppliers‟ liability to generate a minimum
percentage of their total generation from renewable sources.
• Other countries have also adopted different strategies and sometimes
direct government intervention to encourage similar generation
schemes.
 Types of micro-grid
• Micro-grid can be generalized basically in two types
1. AC micro-grid
2. DC micro-grid.
3. Hybrid Micro-grid
Compared to AC micro-grid DC micro-grid have many
advantages,
• It needs less power converters, high system efficiency and easier
interface of renewable energy sources to DC system.
• There is no requirement of frequency, phase synchronization, or
reactive power control.
• In the other hands, the consumer electronics, such as LED
lightning, computer, pager, phone and so on can be more
conveniently powered by DC power, so DC micro-grid will be
the main power supply system for the future sustainable home
and buildings .
• In order to ensure the stability of DC micro-grid, the power flow
within the DC micro-grid must be balanced all the times to
maintain a constant DC bus voltage.
 Types of micro grid(DC Micro-grid)
Definition
• A DC micro-grid is one that uses direct current (DC) as the means of
delivering power from the generation units to the consumption units. They
may be configured as systems conductors with positive and negative polarity,
with a grounded conductor at neutral potential, or as systems with positive or
negative polarity, with the other conductor grounded
Typical Elements
• A DC micro-grid typically includes power converters to interface sources and
loads, special protection elements, and an interface to AC grid.
Benefits
• A DC micro-grid decouples the frequency, voltage, and phase of the various
AC generation and consumption elements in the micro-grid by the use of
suitable power converters.
Challenges
• It is challenging to build robust protection systems for DC micro-grids, and it
often requires integration of protection functions into the converters
themselves
 AC Micro-grid
Definition
• An AC micro-grid is one that uses alternating current (AC) as the
means of delivering power from the generation units to the
consumption units. Types include single-phase, three-phase, and multi-
phase with different grounding options.
Typical Elements
• An AC micro-grid typically includes transformers and power
converters to interface sources and loads as well as protection devices.
Benefits
• The operation of an AC micro-grid is analogous to that of a large-scale
utility system; it is relatively easy to achieve power flow control, and
one can use conventional protection elements.
Challenges
• In an AC micro-grid, one may need to modify power conversion
interfaces to handle fault scenarios under different operating modes.
Figure 12.3 illustrates AC bus based microgrid. The
interconnection between the AC bus and each of the energy
sources is realized using power electronic converters (DC/AC
or AC/AC). Each of the converters may be centrally dispatched
in order to regulate the energy flow in or out of the AC bus, or
they may be droop controlled in order to share power among
them in an autonomous or distributed manner. Installations of
these systems have found application in remote locations
where access to a central electricity grid is unreliable and the
power quality is poor.
An example of nested microgrids is shown in Fig. 12.4. In the example, a group of buildings
with local generation is operated as a low-voltage AC microgrid, which is connected via an
isolation switch and a transformer to a medium voltage AC microgrid.
In a military microgrid operating nominally at 50 or 60 Hz, there may be many units that
can generate and consume power from a 400 Hz supply. In such a case, the overall system
could be designed with a nested low voltage AC microgrid operating at 400 Hz. The system
would require a power electronic frequency converter at the interface between the lower
and upper level microgrids.
Similarly, one may also choose to design a system with a DC microgrid nested within
an AC microgrid or vice versa
• Each source has a local controller that typically consists of two parts:
• (1) an inner controller that regulates the terminal quantities like voltage
and frequency, and
• (2) an outer controller that provides the references to the inner controller.
• In addition to the local controller, the microgrid may have a supervisory
controller that updates set points for the individual local controllers
depending on the state of the overall microgrid.
Comparison of AC and DC micro-grid
 Technical Implication of Micro-grid
• In spite of potential benefits, development of Micro-grids suffers from
several challenges and potential drawbacks as explained.
• High costs of distributed energy resources – The high installation cost
for Micro-grids is a great disadvantage. This can be reduced by arranging
some form of subsidies from government bodies to encourage investments.
• This should be done at least for a transitory period for meeting up
environmental and carbon capture goals. There is a global target set to
enhance renewable green power generation to 20% by 2020 and to reduce
carbon emission by 50% by 2050
• Technical difficulties – These are related to the lack of technical
experience in controlling a large number of plug-and-play micro-
sources.
• This aspect requires extensive real-time and off line research on
management, protection and control aspects of Micro-grids and also on
the choice, sizing and placement of micro-sources.
• Technical difficulties
• Specific telecommunication infrastructures and
communication protocols must be developed in this area.
• Research is going on for the implementation and roll-out of
IEC 61850 in communication for Micro-grid and active
distribution networks.
• However, lack of proper communication infrastructure
in rural areas is a potential drawback in the
implementation of rural Micro-grids.
• Besides, economic implementation of seamless switching
between operating modes is still a major challenge since the
available solutions for reclosing adaptive protection with
synchronism check are quite expensive
 Technical implication of micro-grid
• Absence of standards – Since Micro-grid is a comparatively new area,
standards are not yet available for addressing operation and protection
issues.
• Power quality data for different types of sources, standards and
protocols for integration of micro-sources and their participation in
conventional and deregulated power markets, safety and protection
guidelines, etc., should be laid down.
• Standards like G59/1 and IEEE 1547 should be reassessed and
restructured for the successful implementation of Micro-grid and active
distribution networks.
• Administrative and legal barriers – In most countries, no standard
legislation and regulations are available to regulate the operation of
Micro-grids.
• Governments of some countries are encouraging the establishment of
green power Micro-grids, but standard regulations are yet to be framed
for implementation in future.
 Technical implication of micro-grid
• Market monopoly – If the Micro-grids are allowed to
supply energy autonomously to priority loads during
any main grid contingency, the main question that
arises is who will then control energy supply prices
during the period over which main grid is not available.
• Since the main grid will be disconnected and the
current electricity market will lose its control on the
energy price,
• Micro-grids might retail energy at a very high price
exploiting market monopoly.
• Thus, suitable market infrastructure needs to be
designed and implemented for sustaining development
of Micro-grids. implications
 Social Fall Out of a Micro-grid
If the public awareness about the social aspects of the micro-grid
deployment and its benefits is not raised, the following social fall
outs of micro-grid may be anticipated

• Raise Public Awareness and Foster Incentives for Energy Saving

and Emission Cutting

• Distributed Energy Resources - created values will not be shared

among end consumers of a network.
• Residential and commercial participants of a micro-grid are likely to
miss on the enjoyment of better electricity tariffs and even loose on
the rewarded incentive programs if they own RES micro sources or
participate in demand-side integration (DSI) programmes.
• This type of economic signal (efficiency values created within a
micro-grid) may not be seen as a strong driving force for acceptance
and promotion of micro-grids.
 Social Fall Out of a Micro-grid
• Creation of New Research and Job Opportunities
• Micro-grid implementation requires knowledge, expertise and
customized hardware and software solutions that are currently not
directly available for both supply- and demand side players in the
market.
• Opportunities for new research posts and job openings will be
offered for technology providers, device manufactures, research
institutes, and so on.
• Unawareness of the aspects of the micro-grid will oversight these
valuable opportunities.
• Opportunities will become available not only in the design
(stereotyping) and installation (standardization) stages, but also in
daily operation and maintenance of a micro-grid, for example
requirements for real-time metering, communication and control
both within and outside of micro-grids, over sighting this will be a
failure for job opportunities
 Social Fall Out of a Micro-grid
• Electrification of Remote or Underdeveloped Areas
• For a long time, it has been widely acknowledged that DER units are
extremely well suited for electrifying remote or underdeveloped regions,
where it is not economic to interconnect to a nearby distribution grid or
where there is simply lack of basic electric infrastructure.
• The micro-grid concept provides a platform for aggregating isolated sectors
of self-sufficient households or communities based on limited micro-
generators and storage units into a more robust network with balancing and
control capacities. This will be a great social fall out as it defeats the very
purpose of microgrid.
• Reliable and affordable supply of electricity via microgrid can be seen as a
critical step for modernization and industrialization of the local economy.
So the awakefulness is a must else it will be a snag for the evolution of a
microgrid and progress of any nation.
Business model of micro grid
• The final configuration and operation schemes of a microgrid
depend on potentially conflicting interests among different
stakeholders involved in electricity supply, such as system/network
operators, DG owners, DG operators, energy suppliers, customers
and regulatory bodies.

• Therefore, optimal operation scheduling in microgrids can have

economic, technical and environmental objectives.

• Depending on the stakeholders involved in the planning or operation

process, four different microgrid operational objectives can be
identified: economic option, technical option, environmental
option and combined objective option.

• In the economic option, the objective function is to minimize total

costs regardless of network impact/performance
• The main limitations come from the physical constraints of DG
• The technical option optimizes network operation (minimizing
power losses, voltage variation and device loading), without
consideration of DG production costs and revenues.
• This option might be preferred by system operators.

• The environmental option dispatches DG units with lower specific

emission levels with higher priority, disregarding financial or
technical aspects.
• This is preferred for meeting environmental targets, currently
mainly supported by regulatory schemes.

• The combined objective option solves a multi-objective DG optimal

dispatch problem, taking into account all economic, technical and
environmental factors
• It converts technical and environmental criteria into economic
equivalents, considering constraints from both network and DG
physical limits.
 Market Models for Microgrids
• Micro-grids are required to function within energy markets.
• Current energy markets operate with various levels of complexity
ranging from fully regulated to fully liberalized models
• Depending on the operational model, two major markets can be
distinguished: the wholesale market and the retail market
• These two different markets can function interacting with each other
via a pool or/and via bilateral transactions.
• Traditionally, mandatory open transmission access to generators and
energy importers has created more competitive wholesale power
markets.
• At the retail level, competition has been established in many
countries, which gives customers additional choices in the supply and
pricing of electricity.
• Due to their relatively small sizes, microgrids cannot participate
directly in the wholesale or retail market, thus they can possibly enter
as part of a portfolio of a retail supplier or an energy service company
(ESCO).
 Market Models for Microgrids
• Fair competition in the retail sector is expected to serve as the
basis of microgrid adoption, which assumes a suitable
regulatory environment and an ICT infrastructure capable of
supporting the market operation (e.g. electronic/smart meters
and a standardized interaction between retail companies and
DSOs),
• The relevant key actors in the energy market are as follows:
• Consumer: The consumer can represent a household or a medium or small
enterprise.
• Typically the consumer has a contract with a retail company for his energy supply.
• Furthermore, the consumers, or anyone connected to the distribution network, need
to pay fees to the distribution network owner for using the network.
• DG owner/operator: Typically the owners of the DG units are also responsible for
their operation. DG owners inject their production to the network, possibly enjoying
priority dispatch and fixed feed-in tariffs. They may pay distribution network
charges. It is assumed that some or all of the DG units will be equipped with at least
some monitoring and possibly control capabilities.
• Prosumer: This is the special case of consumers who have installed small DG
in their premises. The local DG production can cover, wholly or partly, the
consumption of the owner, and the surplus can be exported to the main power grid.
Alternatively, the total local production can also be sold directly to the main power
grid enjoying favorable feed-in tariffs.
• Customer: Consumers, DG owners/operators and prosumers are termed
customers.
• Market regulator: A regulatory authority for energy is an independent body
responsible for the open, fair and transparent operation of the market, ensuring open
access to the network and efficient allocation of network costs.
• Retail supplier, energy service company (ESCO): A supplier
directly interacts with the customers and has contracts with them.
• Its main duties are to provide electricity and possibly other energy
services to its customers.
• Distribution system operator (DSO): The distribution system
operator is the actor responsible for the operation, maintenance and
development of the distribution network in a given area.

• Usually the DSO

(a) manages the HV, MV and LV distribution systems,
(b) is obliged to deliver electricity to consumers or absorb
energy from DG/RES and
(c) being a regulated entity, it is not involved in any retail
activity

• Microgrid operator: The microgrid operator is responsible for the

operation, maintenance and development of the local (LV)
distribution network forming the microgrid
 Internal Markets and Business Models for
Microgrids

• The internal market of a microgrid mainly relates to the ownership

and business models established between major stakeholders
involved in the operation of a microgrid, such as local consumers,
microsources, DSO and energy supplier.
• A microgrid‟s internal market mainly determines the amount and
direction of cash flows within the microgrid.
• It also defines which entity will participate in external markets, as
representative of the whole group of stakeholders.
• Microgrid structures can be differentiated by the level of their DER
aggregation: they range from a simple collection of independent
market players to a collaboration that encompasses all demand- and
supply-side entities
• Similar to the unbundling of central generation from transmission
network, the operation structure of a microgrid will be mainly
decided by the ownership of microsources, that is, by the DSO,
 Internal Markets and Business Models
for Micro grids
Three typical setups can be
identified,
1. the DSO(Distribution
system operator)monopoly
2. Free market
3. Prosumer consortium
models
DSO Monopoly Model
 DSO Monopoly Model
• In a DSO monopoly microgrid, the DSO is part of a vertically integrated
utility, so it not only owns and operates the distribution grid, but also full -
fills the retailer function of selling electricity to end consumers.
• Within this single-player context, integration and operation of micro-
sources is most conveniently also undertaken by the DSO
• In a DSO monopoly micro-grid, micro-generation units tend to be larger,
and storage units tend to be located at central substations.
• With the business model of Figure 1.7, a versatile “extended” DSO plays
the role of both physical and financial bridge between the overlying grid
and end consumers. Microsource control decisions are basically made with
in the framework of DSO functionalities.
• In general, a DSO monopoly microgrid is most likely to be built upon
a technically challenged distribution grid with aging infrastructure,
maintenance and/or supply quality problems.
• The investment decision in microsource units by a DSO (if allowed by the
market regulator) can be generally explained as an alternative to more
expensive network solutions,
Liberalized Market Model
 Liberalized Market Model
• In liberalized markets, microgrids (Figure 1.8) can be
driven by various motives (economic, technical,
environmental etc.) from various stakeholders
(suppliers, DSO, consumers etc.).
• The daily operational decisions depend on real time
negotiations (i.e. interest arbitration) of all parties
involved.
• In this case, a micro-grid operator or central controller
(MGCC) is responsible for micro-grid local balance,
import and export control, technical performance
maintenance and emission level monitoring.
• In a free market microgrid, DG and storage units can
vary in forms, sizes and locations.
Pro-sumer Consortium Model
 Prosumer Consortium Model
• A prosumer consortium micro-grid (Figure 1.9) is most
likely to be found in regions with high retail electricity price
and high micro-generation financial support levels.
• In this case, single or multiple consumers own and operate
micro-sources to minimize electricity bills or maximize
sales revenue from energy export to the upstream network.
• This type of micro-grid tends by nature to minimize the
use of the distribution grid (which leads to a reduction in
the use of system revenues) and may neglect network
constraints (i.e. DG hosting capacity) during its design.
• In a prosumer consortium micro-grid, micro-generation
tends to be smaller, and storage tends to be small and
dispersed (e.g. plug-in electric vehicles).
 Market model for microgrid
• The electricity market reforms have brought about major changes in the market monopoly of the
vertically integrated power systems. Three major components of vertically integrated monopoly are
generation, transmission and distribution.
• In earlier days, vertically integrated power utilities would control as a monopoly the selling and
distribution of electricity and ancillary services to customers within their own territories. In this
monopoly, each utility would control generation, transmission and distribution without any
competition leading to poor service reliability and efficiency with respect to the revenue charged
from the customers. Restructuring ensures a competition in providing better service by allowing
customers to purchase electricity and ancillary services from suppliers of their choice, thereby
assuring cost-effective purchase of quality service. It also encourages participation of small
businesses to sign contract for buying power from cheaper sources.
• Restructuring replaces the vertically integrated system by a more market-oriented system where
price of electrical power is set through open competition rather than by regulations imposed by a
single party. Restructuring significantly reduces the cost of power for small businesses and
consumers through open market competition. It would allow customers to choose power providers
and thus enhancing the level of service reliability. The open market competition also improves
economic efficiency by expansion of operational regions through interconnection of generation and
transmission systems.
• Microgrids, which are viewed as aggregated controllable load units with their own on-site power
generation, can therefore easily participate to sell power and ancillary services in the newly
restructured open market. It ensures system reliability, power quality and efficiency at
comparatively lower costs.
 Market model for microgrid
• Restructuring models
• In order to alleviate the monopoly of
vertically integrated utilities, three major
models have been developed for
electricity market restructuring, viz.
PoolCo Model, Bilateral Contracts Model
and Hybrid Model. These models
encompass different types of competition
in the open market for ensuring better
service to the customers
 Market model for microgrid
PoolCo Model

• PoolCo Model is defined as a centralised marketplace that clears the market for buyers and
sellers. Here the electric power participants submit bids and prices into the pool for the
amounts of energy to sell or buy respectively. The market clearing ensures participation of all
the suppliers and customers in the market pool.
• The Independent System Operator (ISO) normally forecasts the demand for the following day
and receives bids to satisfy the demand at the lowest cost and prices for the electricity on the
basis of the most expensive generator in operation.
• The main characteristic of this model is to establish independent wholesale power pool served
by interconnected transmission systems. This is a centralised clearing market of electricity
trading, aimed at introducing competition that forces the distribution utilities to buy power
from the PoolCo and generation utilities to sell power to the PoolCo at a market clearing price
(MCP) defined by the PoolCo irrespective of the generation cost.
• The PoolCo does not own any generation or transmission components and centrally
dispatches whole power within its service jurisdiction. It controls the maintenance of
transmission grid for ensuring efficient operation by charging non-discriminatory fees to
generators and distributors to cover its operating costs. In the PoolCo, both sellers and buyers
compete for the rights of injecting and drawing power to and from the PoolCo. Sellers fail to
inject power if their bid is too high and similarly buyers may not be successful in drawing
power if their bid is too low. It ensures implementation of economic dispatch producing a
single spot price for electricity, thereby giving participants a clearance for consumption and
investment decisions. Thus, the market dynamics drive the spot price to competitive level that
is equal to the marginal cost of the most efficient firms. In this market the sellers are paid for
their electricity and customers are charged for their consumption on spot.
 Market model for microgrid
Bilateral Contracts Model
• Bilateral Contracts Model is sometimes called direct access model
because here the role of ISO is more limited, thereby allowing
buyers and sellers to negotiate directly in the electricity market
without entering into pooling arrangement. In order to have
successful participation in the model, small customers need to have
aggregation to ensure benefits from competition. Thus Microgrid,
being an aggregated load with local generations, can significantly
participate in the market to harvest the benefits from open
competition.
• This model establishes non-discriminatory access and pricing rules
for transmission and distribution systems assuring guaranteed sale
of power over the available transmission and distribution systems.
 Market model for microgrid
Hybrid Model
• The Hybrid Model combines various features of the earlier
two models. Here the sale and purchase of power through
power exchange (PX) are not obligatory and the customers
are allowed to sign bilateral contracts with the pool
suppliers of their choice. The sellers and buyers can both
opt for not signing any bilateral contract availing maximum
flexibility to sell and buy power either through pool or by
direct bilateral transaction between seller and buyer. The
Hybrid Model is significantly flexible in offering either of
the marketing options based on prices and services, but it is
much costlier because of the co-existence of separate
entities of pool and direct dealing in the same system.