Modelling of microgrids to insure resource adequacy in the capacity market

The penetration of renewable resources in distribution networks have led to the creation of a concept called microgrids. Microgrids act as a bus with the ability to control the amount of consumption and generation, from the viewpoint of system operator. If the amount of capacity that can be provided by microgrids is known, they can be effective in providing resource adequacy and the required capacity of the network. This paper contains two contributions. Modelling of capacity value of a microgrid that includes wind turbines, photovoltaic, non-renewable generators, loads and batteries is the first innovation of this paper. Here, a capacity value model for microgrids is created for the first time. The application of microgrid capacity value model to a long-term issue, such as ensuring resource adequacy in the capacity market, constitutes the second innovation of this paper. Consequently, there are two distinct innovations in this work. The presence of microgrids in the capacity market has increased competition and reduced costs, and on the other hand, it will help the microgrids development through their long-term generation revenues. The proposed method has been tested on IEEE 57-bus test system. Results have shown the efficiency of using microgrids in the capacity market.