Economic Operation of Droop-Controlled AC Microgrids

Linear droop control is a standard approach for the decentralized operation of AC microgrids. While the traditional design of the real and reactive power droop functions does not consider economic aspects, recent approaches present modifications to enable least-cost operation. This paper proposes mixed-integer conic programming (MICP) for computing the real and reactive power droop parameters from a stochastic optimization framework that captures several snapshots of the microgrid’s operation. The model permits distributed generation to switch between grid-forming and grid-feeding modes. Unlike previous works, MICP provides droop parameters that are globally optimal for the design scenarios. Numerical results show that using traditional linear cost-based droop design methods may result in voltage magnitude violations. In contrast, the proposed method gives a solution free of violations and is yet more economical.