Analysis of market price for distributed generators (DGs) in Microgrid

Renewable and nonconventional distributed energy resources (DERs), such as, wind, solar PV, microturbines, fuel cells, diesel generators etc. are gradually becoming more popular as energy efficient and low-emission energy sources. Recent deregulation initiatives in power and energy industry are currently influencing company decisions regarding the construction of new generation plants and transmission lines, and complying to clean air legislation for a generation type. The dependence on imports of fossil fuels and the unavoidable depletion of these resources can only be countered through deployment of renewable and/or non-conventional DERs as Microgrid. Microgrid system will be economically viable if proper market participation is allowed. The paper discusses various marketing strategies for Microgrid Power Market such as, spot marketing, pricing etc. that can be applied to predict and ensure its economic viability. In the paper, the authors formulate a pricing structure in spot market scenario.