An incentive mechanism design using CCHP-based microgrids for wind power accommodation considering contribution rate

Abstract

Due to the rapid growth and the volatility of wind power, wind power accommodation becomes much more challenging. As combined cooling, heating and power (CCHP)-based microgrids (MGs) operators(CMGOs) can schedule the local multi-energy (cooling, heating and power) generation, storage and implement integrated demand response to accommodate abandoned wind power. In this paper, an incentive mechanism is proposed to facilitate wind power accommodation trading.In themechanism, a wind power supplier (WPS) organizes many CMGOs to participate in the wind power accommodation trading. Besides, a novel index termed as contribution rate, is proposed to evaluate the participants’ contributions to the wind power accommodation trading. Then, based on participants'contribution rate the benefits allocation mechanism is designed. As different CMGOs tend to make decisions independently, it is impractical to solve the optimization problem in a centralized method. A distributed method is proposed to solve the optimization problem using the alternating direction method of multipliers decomposition technique. The simulation results demonstrate that the abandoned wind power is accommodated by CMGOs well, and both WPS and CMGOs get benefits from the wind power accommodation trading according to their contribution rates.