International Journal of Applied Power Engineering (IJAPE)

Vol. 11, No. 3, September 2022, pp. 199~208

ISSN: 2252-8792, DOI: 10.11591/ijape.v11.i3.pp199-208  199

Economic dispatch of an islanded microgrid

Gowthami Thimmapathruni Venkata Satya, Chennapragada Venkata Krishna Bhanu

Department of EEE, Gayatri Vidya Parishad College of Engineering (A), Visakhapatnam, India

Article Info ABSTRACT

Article history: Microgrids are increasingly becoming popular to improve energy access and
increase the resiliency of weakly connected rural networks. The economic
Received Aug 28. 2021 operation of these microgrids with renewable energy resources is key for
Revised Aug 16, 2022 maximizing the benefits. The objective of this paper is to implement the
Accepted Aug 23, 2022 economic dispatch of a microgrid using quadratic programming, considering
the active and reactive power capability of the renewable energy resources.
The open distribution system simulator (OpenDSS) is used for obtaining the
Keywords: load flow of the distribution network, and the converged solution is given as
input to MATLAB for optimization. The simulation is carried out for one
Microgrid day with a variation of hourly load, solar PV radiation, and wind in both
Grid-connected mode grid-connected and islanded modes under six different cases. The
Islanded mode methodology is implemented on a modified IEEE-13 node test feeder
Quadratic programming distribution system. The simulation result shows that the microgrid with
Open DSS and MATLAB distributed generation (DG) capable of supplying both active and reactive
power under islanded conditions is economical when compared to the grid-
connected mode. The novelty of the work is that it considers the capability
of distributed generation to supply both active and reactive power. That can
make it fully autonomous as it can meet the hourly load requirement of the
network under islanding mode as per IEEE Standard 1547.4.
This is an open access article under the CC BY-SA license.

Corresponding Author:
Chennapragada Venkata Krishna Bhanu
Department of EEE, Gayatri Vidya Parishad College of Engineering (A)
Visakhapatnam, India
Email: [email protected]

1. INTRODUCTION
Microgrid is considered as a solution for the challenges faced by the conventional central grid to
improve energy access [1]. The microgrid is simply an integration of distributed energy sources generation
which includes renewable energy like PV System, Wind, energy storage, etc., into distribution planning and
operation. The microgrid is electrically connected to the utility system at the low-voltage bus of the
substation transformer, which constitutes the point of common coupling (PCC) of the microgrid [2]. Due to
maintenance at transmission-level or faults at the transmission feeder, the microgrid alters to islanded mode
from the grid-connected mode [3]. In the grid-connected mode, the main grid will supply the shortfall and
absorb the excessive power of the microgrid. The grid–connected mode of the microgrid is expected to
provide sufficient generation capacity, operational strategies, and controls to supply at least a certain amount
of the load after being altered to islanded mode [4]. The operation and benefits of microgrid vary depending
on the location, components and optimization goals. However, there are barriers also for the successful
implementation of microgrids [5].
Microgrid being an emerging technology, the economic operation improvement of the microgrid is
being focused on research in order to make use of the benefits of renewable energy sources and other
distributed energy resources (DER). The economic dispatch aims at obtaining the least cost of the microgrid.

Journal homepage: http://ijape.iaescore.com

200  ISSN: 2252-8792

Either classical or intelligent search techniques are used to solve the problem of economic dispatch.
Zhang et al. proposed that the multi-objective optimization model can be solved by the mixed integer
programming method [6]. A modified mixed integer linear programming with genetic algorithm was
proposed by Nemati et al. [7] to consider the network restrictions like voltages, equipment loadings and unit
constraints. Many dynamic program based economic dispatch methods have been proposed to overcome the
increase in number of configurations in case of mixed-integer linear programming [8]–[10]. A dynamic
economic dispatch using particle swarm optimization (PSO) algorithm combined with Monte Carlo
simulation is proposed in [8]. The approach considers four different operating strategies under grid-connected
and islanded mode of the micro-grid and its impact on optimization goals and reliability indices. Dynamic
program approach considering variations of load and generation capacity is used to reduce the minimum fuel
cost of conventional generators in [9]. A modified dynamic programming which utilizes the quadratic
programming is proposed by McLarty et al. [10]. The method has successfully captured the non-linear
performance and cost of generation with less computational demand compared to mixed-integer
programming approaches. The [11] is used to implement the economic dispatch problem for DC microgrids.
Kong et al. [12] suggested an optimal dispatch strategy including storage devices to obtain the total least
operating costs targeting grid-connected microgrids, and this model is solved by an improved dynamic
programming technique. An optimal economic dispatch problem considering combined heat and power in
microgrids is presented by Bornapour et al. [13], and then a modified particle swarm optimization algorithm
is used to solve the mixed-integer nonlinear problem. A modified harmony search (MHS) algorithm is
proposed to solve the combined economic emission dispatch (CEED) problem of the microgrid taking into
account the solar and wind power cost functions [14]. A novel hybrid algorithm consisting of grey wolf
optimizer, sine-cosine algorithm and crow search algorithm has been implemented for economic dispatch of
a three-unit stand-alone microgrid supported by wind energy [15]. Weirong Liu et al. [16] proposed a
cooperative reinforcement algorithm for distributed economic dispatch in microgrids. This method has the
advantage of reducing the complexity of stochastic modelling of renewable resource uncertainty. Energy
Storage is a key technology for deriving certain benefits in micro-grid systems like improvement in power
quality, smoothing power fluctuations from renewables. A backcasting algorithm is used to estimate the net
storage value to participate in arbitrage [17]. An economic dispatch model for energy storage system in
micro-grid environment which meets non-anticipative constraints is proposed in [18]. The model considers
the constraints of micro-grid operation and energy storage system, including the non-anticipative constraints
of economic dispatch. The objective function is constructed based on the criterion of minimizing the power
consumption cost of micro-grid.
However, as the number of DERs integrating into microgrids is getting bigger, the drawbacks of
centralized optimization are gradually known by researchers, such as difficulty in processing and a large
amount of data acquisition, vulnerability to the central point of failures, and communication failures [19]. But
in many of these works, the network used does not consider different types of loads and discuss generator
and modeling issues. It is proposed that in primary control, the marginal costs-frequency droop control and
equal marginal costs can be achieved accurately. While considering the power constraints of DERs, upper or
lower power limits have arrived for some DERs, then equal marginal costs can still be obtained among the
rest of DERs by applying a consensus-based "virtual" controller. The distributed secondary frequency control
(DSFC) is suggested to achieve the transition between non-economic and economically stable operation in
autonomous microgrids in a distributed fashion in order to restore the system frequency effectively [19].
The economic dispatch problem can be formulated as a quadratic programming problem as shown
in [20]. The results of applying this approach to real systems have been included from which it is observed
that this method has many desirable characteristics. The economic dispatch and load flow problems can be
solved by quadratic programming. When compared to other methods of solving economic dispatch problems,
the mathematical operations involved in quadratic programming are relatively simple. In the phase of
optimization, all intermediate results are feasible and the algorithm indicates if a feasible solution is possible
or not. Convergence is independent of the penalty factors or gradient step size and is very fast. Hence, this
method has several advantages over existing methods of solving the economic dispatch problem.
The major focus in the literature so far is on finding a feasible solution or a control algorithm for
achieving the economic dispatch. The result that is obtained was tested on systems that mostly do not
consider different types of load, the capability of active and reactive power of DER under-islanding
conditions as per IEEE Standard 1547.4 [21]. The capability of supplying both active and reactive power by
DER will enable the microgrid to operate and supply the entire load in the islanded mode. This has not been
explored so far. Also, there is no discussion on the software tool used and their modeling aspects of the
network or components, particularly distributed generation like solar PV and wind. This paper addresses
these issues and implements a cost minimization algorithm on the distribution test system meeting some of
the requirements as per IEEE Standard 1547.4. This work uses OpenDSS, an electric power distribution

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system software developed by EPRI, USA for solving power flow and utilizes its MATLAB COM interface
feature for solving optimization algorithm. The methodology is detailed in section 2. The description of the
micro-grid, used to demonstrate the methodology, is discussed in section 3. In section 4 simulation results are
analyzed and discussed. Section 5 presents conclusions.

2. METHOD
This section presents the methodology used in the work. The flow chart of the work carried out is
shown in Figure 1. OpenDSS is used for obtaining the load flow of the distribution network and the
converged solution is given as input to MATLAB for optimization. The simulation is carried out for one day
with a step size of one hour.

2.1. The open distribution system simulator (OpenDSS) software

The OpenDSS is an open-source and general-purpose frequency-domain simulation engine. It has
the capability to obtain the time- and location-dependent value of DG. By modeling the DG in its actual
location on the circuit, the location–dependent values can be obtained. In order to obtain the time-dependent
values, the extraordinary load-shape modeling capability is required which is in-built. This feature is used in
this work for optimization of cost while allocating DG resources like PV and Wind for meeting the load
requirements [22].
− PV system model: The PV system model in OpenDSS consists of a solar PV array and an inverter. The
power output of the model is a function of the irradiation, temperature, and inverter efficiency. The model
can be programmed to deliver both active and reactive power.
− Wind system model: Double fed induction generator (DFIG) model is used in this work. It consists of a
wounded rotor induction generator (WRIG) along with back-to-back converter. The grid is connected to
the stator winding of a WRIG and the rotor is connected through a converter. The purpose of using this
model is to make use of its capability to decouple active and reactive power [23].
− Modeling of solar PV and wind generators: Both solar PV and wind generators are modeled as current
sources (Isource) to avoid convergence issues. The daily profile is added to the I source to make it match with
the generation from PV system or wind generator for a day on an hourly basis. The corresponding current
value is calculated considering the impedance of the element, which is used as a reference for the I source.

2.2. Quadratic programming

Among many methods, quadratic programming is a method to solve the optimization problem.
Quadratic programming is an effective optimization method to find global solutions especially when the
objective function is quadratic. The classical formulation of economic dispatch is:

NG
 
Minimize  F  P
i gi



i =1
()

Constraints subjected to:

a) Equality constraint
Real power balance:

NS

P
i =1
gi = PD
(2)

b) Inequality constraint
Unit generation capacity limits:

Pgimin  Pgi  Pgimax

(3)

The cost function of the thermal generator uses a second-order lagrangian function as

( )
Fi Pgi = ai + bi Pgi + ci Pg2i
(4)

Economic dispatch of an islanded microgrid (Gowthami Thimmapathruni Venkata Satya)

202  ISSN: 2252-8792

where i is ith generating source, Pi is the electrical power output of source i, Fi is operating cost of source i in
$/hr; ai, bi, ci are the cost coefficients, Pimin is the minimum output power of source i, Pimax is the maximum
output power of source i, NS is a number of sources and PD is the total system demand.
The cost function of solar generator and wind generator is [24]:

F (Ps / w ) = aI p Ps / w + G E Ps / w
(5)

where, a is the annuitization coefficient, r is the rate of interest, N is a lifetime investment, IP is the cost of
investment per unit installed power GE is the operation and maintenance cost and PS/W is the capacity of
solar/wind generation in MW.

Figure 1. Flow chart of the methodology

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Int J Appl Power Eng ISSN: 2252-8792  203

The proposed methodology is implemented on a modified IEEE-13 node test feeder distribution
system [25] shown in Figure 2. The following modifications have been carried out in the standard IEEE-13
node test feeder: i) Inclusion of PV system at the node 675; ii) Inclusion of wind generator at node 680; and
iii) An isolator is added between nodes 632 and 671. When isolated, the network operates as two different
sub-networks, one connected to the grid and other isolated from the grid. The two sub-networks are shown in
dotted lines in Figure 2.
The purpose of modifications is to design and operate an isolated DR system also called a micro-
grid as per the standard IEEE 1547.4. An isolator and distributed generation (PV and wind generation) are
added to the standard test system for including the functionalities of the micro-grid and to enable the system
to operate in both parallel mode and isolated mode. The system has only one point of common coupling
(PCC) at node no. 632 through an isolating switch. The purpose of the isolator is to create islanding either
intentionally or under fault conditions. There are various configurations of islanding in micro-grid [12]. In
this paper, circuit islanding is considered. Besides, there are four modes of operation-normal parallel mode,
transition-to-island mode, island mode, and reconnection mode. In this paper, only two modes-normal
parallel mode and island mode are considered. The ratings of the PV system and Wind generations are
2640 kW and 2820 kW at nodes 675 and 680 respectively. The ratings of the distributed generation is so
selected such that the system can independently supply all the load required based on daily load shape,
reserve margin under islanded conditions.

Figure 2. Modified IEEE-13 node test feeder

3. RESULTS AND DISCUSSION

The proposed methodology described earlier is implemented on the modified network for a day with
an hourly variation of load, wind, and solar radiation. The hourly load profile of the micro-grid is shown in
Figure 3 with a maximum demand of 2169.68 kW in the 18th hour. Similarly, the solar irradiance and wind
profile are shown in Figures 4 and 5 respectively. The data required for economic dispatch i.e. cost
coefficients of the main grid, PV system, and wind generator are taken from [24] and [26]. The following six
cases have been considered for implementing economic dispatch and evaluating the benefits of the microgrid.
The first four cases represent grid-connected microgrid and the latter two cases present microgrid under
islanded conditions.

Figure 3. Load profile of the microgrid Figure 4. Irradiance profile of the solar photovoltaic system

Economic dispatch of an islanded microgrid (Gowthami Thimmapathruni Venkata Satya)

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Figure 5. Output power curve of the wind system

− Case 1: Original network (IEEE -13 bus distribution test system–without DG)
The generation schedule obtained through the algorithm from each source for 24 hours can be seen
in Figure 6 that shows hourly load met by grid including system losses. In this case, the grid supplies a total
energy of 43863.46 kWh and the losses are 705.04 kWh, that is, 1.6% of the total energy supplied to the load
in a day. The cost of generation is the US $131.7/MWh.
− Case 2: Microgrid in grid-connected mode (Modified IEEE–3 bus distribution test system with both solar
PV and wind)
The generation schedule obtained through the algorithm from each source for 24 hours can be seen
in Figure 7 which gives the hourly contribution of various sources-grid, PV, and Wind to meet the load
requirement and the losses. In this case, out of total demand in the day, the grid supplies 25213.02 kWh,
which is 57.85% of the total energy supplied, 5391.67 kWh by the PV System that is 12.37%, and
12977.31 kWh by the wind generator, which is 29.77%.
The losses sum up to be only 0.995%, that is, 433.73 kWh of the energy being supplied whereas the
losses in the case of simulation of Case 1 are 1.6%. Hence, the losses are less when DG is present in the grid–
connected microgrid than a simple IEEE-13 node test feeder (without DG). The cost of generation is the US
$79.62/MWh.

2500

2000
Power (kW)

1500

1000

500

0
1 3 5 7 9 11 13 15 17 19 21 23
Time (h)
Grid (kW) PV (kW)
Wind (kW) Load Curve (kW)

Figure 6. Result of simulation of Case 1 Figure 7. Results of simulation of Case 2

− Case 3: Microgrid in grid-connected mode (Modified IEEE–13 bus distribution test system with only
solar PV present)
In this case, the load requirement is met through the grid and solar PV as shown in Figure 8. Wind
generation is not present. During the daytime, when there is solar radiation present, the load is supplied by
both grid and solar. The total contribution of solar energy is 38% of the total energy consumed by the load.
The cost of generation is the US $ 120.07 /MWh.
− Case 4: Microgrid in grid-connected mode (Modified IEEE–13 bus distribution test system with only
wind resource)
In this case, the load requirement is met through the grid and wind generation as shown in Figure 9.
Solar PV generation is not present. The total contribution of wind is 30% of the total energy consumed by the
load. The cost of generation is the US $92.6 /MWh.

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Figure 8. Result of simulation of Case 3 Figure 9. Result of simulation of Case 4

− Case 5: Microgrid in Islanded mode (Modified IEEE–13 bus distribution test system with both solar PV
and Wind present)
The economic dispatch was performed for the IEEE-13 node test feeder with PV system and wind
generator in islanded mode. Figure 2 depicts the IEEE-13 node test feeder with PV system and wind
generator islanded from the grid. In this case, there are two parts in the system-grid-connected part and
islanded part of the microgrid.
a) Case 5(a): Grid-connected part of the microgrid: The generation schedule obtained through the algorithm
from each source for 24 hours can be seen in Figure 10(a) as shown in. In this case, the grid supplies a
total energy of 10287.53 kWh and the losses are 14.03 kWh which is 1.75% of the energy being supplied.
b) Case 5(b): Islanded part of the microgrid: The generation schedule obtained through the algorithm from
each source for 24 hours can be seen in Figure 10(b) below. In this case, out of total demand, 22.99%,
that is 7655.99 kWh is supplied by the PV system, and 25636.85 kWh, that is, 77.01% by the wind
generator. The losses sum up to be 244.61 kWh which is 0.73% of the energy being supplied which is
quite less than that in the case of the grid–connected part of the proposed microgrid.

600 2000
500
1500
Power (kW)

Power (kW)

400
300 1000
200
500
100
0 0
1 3 5 7 9 11 13 15 17 19 21 23 1 3 5 7 9 11 13 15 17 19 21 23
Time (h)
Time (h) PV (kW) Wind (kW) Load Curve (kW)
Grid (kW) Load Curve (kW)
(a) (b)
Figure 10. Results of simulation of (a) Case 5(a) and (b) Case 5(b)

Figure 11 gives hourly load for microgrid under islanded conditions, considering both grid-
connected part and islanded part for 24 hours can be seen. The grid supplies 23.59%, PV system supplies
17.57%, and wind supplies 58.83% of the total energy in a day. The losses in this are 0.975% of the total
energy being supplied.
− Case 6: Microgrid in Islanded mode (Modified IEEE–13 bus distribution test system with only wind
present)
a) Grid-Connected part of the microgrid: The generation schedule obtained through the algorithm from each
source for 24 hours can be seen in Figure 12(a). In this case, the grid supplies a total energy of
10287.53 kW h.
b) Islanded part of the microgrid: The generation schedule obtained through the algorithm from each source
for 24 hours can be seen in Figure 12(b). The entire energy requirement is met by the wind source.

Economic dispatch of an islanded microgrid (Gowthami Thimmapathruni Venkata Satya)

206  ISSN: 2252-8792

2500

2000

Power (kW)
1500

1000

500

0
1 3 5 7 9 11 13 15 17 19 21 23
Time (h)
Grid (kW) PV (kW)
Wind (kW) Load Curve (kW)

Figure 11. Results of simulation of Case 5

(a) (b)

Figure 12. Results of simulation of Case 6: (a) Grid connected part of the microgrid and
(b) Islanded part of the microgrid

The cost of generation in this case (including both grid-connected part and isolated part of the
microgrid) is the US $ 32.81/MWh. This is the least cost of generation among all the cases considered in this
work. Table 1 presents the results of the economic dispatch of a microgrid both in grid-connected mode and
isolated mode. Cost of generation and system losses in the table represent total values for one day of
operation. The total energy supplied to the load is 43148.27 kWh which is the same in all cases. The
following observations can be made from the above table:
− The minimum cost of generation is the US $ 32.18/MWh with the load supplied by only wind generation
under islanded conditions.
− The cost of a generation when both solar PV and Wind are present is more in grid-connected mode when
compared to the islanded mode of operation.
− Using wind as a resource is less expensive (US $ 92.66/MWh) when compared with solar in the grid-
connected mode. This is because of the availability of wind throughout the day.
− When no DG is present, the cost of generation is maximum with US $ 131.71/MWh in grid-connected
mode.
− In islanded mode, the load could not be met with solar PV alone as it is available only during the daytime.
However, it is possible to meet the load requirement with wind generation.

Table 1. Summary of economic dispatch of all cases

Case Description of the Case Cost of Generation System Losses
(in US $/MWh) (in kWh)
1 Grid-Connected Mode (Original Test System) 131.71 705.04 (1.6%)
2 Grid-Connected Mode with both Solar PV and Wind present 79.62 433.73 (0.95%)
3 Grid-Connected Mode with only Solar PV 120.07 481.4 (1.1%)
4 Grid-Connected Mode with Wind only 92.66 430.2 (0.99%)
5 Islanded Mode with both Solar PV and Wind 63.87 424.9 (0.975%)
6 Islanded Mode with only Wind 32.18 583.1 (1.33%)

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4. CONCLUSION
In this paper, the economic dispatch of a microgrid using quadratic programming has been carried
out using open DSS and MATLAB. The proposed methodology has been implemented on a modified IEEE-
13 bus distribution test feeder. Previous research in this area did not take into account different types of loads
and the capability of DER to supply both active and reactive power under islanding conditions in order to
meet the load design requirements specified in IEEE Standard 1547.4. This paper addresses all these issues
and includes appropriate changes in the original test system and modifies the network accordingly. The paper
also discusses the modeling issues of DER in open DSS. From the work carried out, the following
conclusions can be drawn: i) microgrid with DG capable of supplying both active and reactive power under
islanded conditions is economical when compared to grid-connected mode; and ii) when DG (Solar PV and
Wind) is included, the cost of dispatch in both grid-connected mode and islanded mode is low when
compared to without DG.

ACKNOWLEDGMENT
The authors wish to acknowledge the support of EPRI in providing open DSS as open-source for
carrying out work in this paper. Also, acknowledge the contributions made by R.C. Dugan through
discussions in giving clarifications on modeling issues during simulation.

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BIOGRAPHIES OF AUTHORS

Gowthami Thimmapathruni Venkata Satya received her B.Tech and M.Tech

from Jawaharlal Nehru Technological University, Kakinada in 2015 and 2018 respectively.
During the summer of 2015, she was the visiting scholar with Visakhapatnam Steel Plant
where she worked on the basics of SCADA. In the year 2015, she worked as Assistant System
Engineer at IBM on various coding languages like C, C++, Java, and Python. During the
summer of 2017, as the part of Cirucullum of her Masters, she had done her internship with
Visakhapatnam Steel Plant on the topic of Health Monitoring of Transformers: A Case Study.
Her research interests include Distribution automation, utilization of renewable energy, and
optimization of power system operation. She can be contacted at email:
[email protected].

Chennapragada Venkata Krishna Bhanu received his B.E., M.E., and Ph.D. in
1990, 1999, and 2009 respectively. He joined Visakhapatnam Steel Plant in 1990 and worked
for five years till 1995. He was involved in the Testing and Commissioning of Electrical
equipment including 12MW Gas Turbines in the Visakhapatnam Steel Plant. He joined Gayatri
Vidya Parishad College of Engineering as a teaching assistant in 1997 and is working as
Professor to date. With his initiation, a 100 kWp grid-connected solar PV plant and an 80 m3
biogas plant on the campus. He is a senior member of IEEE and a Fellow, the Institution of
Engineers (India). He is also a Certified Energy Auditor, BEE, Ministry of Power, Government
of India. His areas of research include Restructured Power Systems, Renewable Energy
Systems, Microgrids, and Energy Storage. He can be contacted at email:
[email protected].

Int J Appl Power Eng, Vol. 11, No. 3, September 2022: 199-208