Optimal control of multiple microgrids and buildings by an aggregator

The electrical grid has been changing in the last decade due to the presence of renewables, distributed generation, storage systems, microgrids, and electric vehicles. The introduction of new legislation and actors in the smart grid’s system opens new challenges for the activities of companies, and for the development of new energy management systems, models, and methods. A new optimization-based bi-level architecture is proposed for an aggregator of consumers in the balancing market, in which incentives for local users (i.e., microgrids, buildings) are considered, as well as flexibility and a fair assignment in reducing the overall load. At the lower level, consumers try to follow the aggregator’s reference values and perform demand response programs to contain their costs and satisfy demands. The approach is applied to a real case study.