Optimal Bidding Strategy for Microgrids in Energy and Spinning Reserve Markets

In this paper, an optimal bidding strategy is proposed for microgrids that participate in both energy and spinning reserve markets for profit maximization. Various uncertain factors such as the day-ahead (DA) energy market prices, real-time (RT) energy prices, reserve prices, output power of the intermittent renewable resources and load demands are considered and modeled. The energy bids, reserve offers, unit commitment and power generation/consumption of the microgird are determined based on two-stage stochastic optimization. The first-stage is related to the DA market, while the second stage is related to the RT market. Comprehensive case studies, which are based on the codes and data of PJM market, have been carried out to verify the proposed strategy.