A decentralized robust model for optimal operation of distribution companies with private microgrids

With the integration of microgrids (MGs) in future distribution networks (DNs), it is essential to develop a practical model for the distribution company (DISCO). Optimal operation of MGs is not generally consistent with DISCO, especially when they are operated by private owners. To this end, a decentralized robust model for optimal operation of DISCO with private MGs (PMGs) is proposed in this paper. The objective is to minimize the total operation cost of the system including DN and PMGs through coordinated operation of them. The enforced operational uncertainties are handled using an adaptive robust optimization (ARO) approach, enabling the operators of DISCO and PMGs to adjust different conservation levels during operating horizon. To respect the ownership of PMGs, a decentralized algorithm based on alternating direction method of multipliers (ADMM) is proposed to efficiently solve the resulting ARO model in which the operating problems of DISCO and PMGs are optimized independently. Case studies of a test system including modified IEEE 33-bus distribution network with three PMGs is used to demonstrate the effectiveness of the proposed model.