Optimal Bidding Strategy for Microgrids in The Day-Ahead Energy Market Considering The Price Elasticity of Load Demand

In this paper, a two-stage stochastic optimization strategy is proposed for microgrids to optimize the energy bids for the day-ahead (DA) and real-time (RT) balancing market, considering the price elasticity of load demands. The uncertainty of energy prices in DA and RT market, output power of renewable energy resources and load demands are considered and modeled in this paper. The price elasticity of load demands is considered and modeled. The objective of the proposed strategy is to minimize the total cost, including the energy cost in both the DA and RT market, the total generation cost of DG units, the discharging cost and the cost of demand response. Comprehensive case studies based on the codes and data of PJM power market show that the proposed strategy can minimize the total cost of the microgrid.