Optimal Scheduling of Distributed Energy Resources in Energy Market

Smart grid technology is recognized as an important solution to the various challenges the age-old grid system is facing including but not limited to the increasing demand, high cost, environmental concerns. Smart grid incorporates distributed renewable energy sources and loads through low-voltage distribution network, microgrid. Determining the optimal operational capacity and configuration of the distributed energy resources (DERs) is a key problem in smart grid network. This paper presents a model for optimal scheduling of DERs and proposes its application in energy market. The proposed discrete time optimization model minimizes the operational cost assuming realistic parameters. The simulation results clearly indicate that the proposed approach is economically effective and profitable.