Optimal Generation Dispatch in Electrical Microgrids Based on Inertia Markets as a Solution to Frequency Stability

This paper addresses a crucial omission in the traditional approach to solving the classic economic dispatch problem within microgrids featuring renewable energy sources—the often-neglected frequency disturbances arising from reductions in system inertia. To remedy this, we present an innovative economic dispatch model empowered by nonlinear optimization (NLP), incorporating stringent minimum inertia constraints essential for ensuring system stability over a 24-h horizon. Our approach involves a comprehensive exploration of the intricate relationship between system inertia and frequency stability, culminating in the seamless integration of these inertia constraints into the economic dispatch model. To validate the practicality of our model, we present two distinct scenarios: a base case representing conventional dispatch methodologies and an alternative case that considers the imposition of inertia restrictions. These scenarios are rigorously tested and implemented using the CICGRE TF C6.04 test system. Employing the powerful GAMS platform alongside the NPL model, we successfully solved the dispatch problem. Our results underscore the significance of maintaining system inertia within the 1.54-s threshold proposed by our model, showcasing a tangible reduction in generation costs as a direct outcome of this enhanced approach to economic dispatch. This research advances the understanding of microgrid management and offers a practical solution to enhance system stability and economic efficiency in renewable-energy-powered microgrids.