ENERGY TRADING IN MICROGRIDS

PROJECT MEMBERS• Muhammad Yousaf SP12-BS(ET)-027• Sohail Ahmed SP12-BS(ET)-049• Urwah Muslim SP12-BS(ET)-117

OUTLINE• Introduction to our project.• History.• Smart grid.• Micro grid.• Difference between smart grid and micro grid• Components of our project.• Summary.

INTRODUCTION• With the passage of time Electricity demand increases, as

the demand increases the problem of electricity occur. In order to resolve this problem in future the major portion of distributed generation will comprise renewable energy resources.

• Renewable energy resources include Solar Cell, wind turbine and Bio mass technologies.

• The problem with the renewable energy resource is that they are intermittent in nature.

Continue…• So the problem is energy balance, trading, and cooperation

in the power system.• The advance power, communication and control technologies

facilitate energy exchange among different micro grids. • Each micro grid has a local generation to feed its loads and

can make energy exchange with the other micro grids. In case of energy shortage within the network, any micro grid can purchase energy from there external utilities.

Continue…• We will handle these smart micro grids through smart

energy management system (SEMS) that can take care of all issues intelligently and efficiently.

HISTORY• Today’s alternating current power grid evolved after 1896, based

in part on Nikola Tesla's design published in 1888. At that time, the grid was conceived as a centralized unidirectional system of electric power transmission, and electricity distribution.

• By the 1960s, the electric grids of developed countries had become very large, mature and highly interconnected, with thousands of 'central' generation power stations.

• Power stations were located strategically to be close to its reserves.

Smart GridWhat is Smart Grid?• “Smart grid” generally refers to a class of technology people are

using to bring utility electricity delivery systems into the 21st century. 

• Smart grid is a system that enables two-way communications in between consumers and electric power companies.

•  In a smart grid system consumer‘s information is received by the electric power companies in order to provide the most efficient electric network operations.

Continue…..• By installing an intelligent meter (smart meter) on the consumer

side, monitoring the use of energy becomes much easier.• Smart grids also make it possible to control power demand and

distributed energy, including renewable energies.• For a century, utility companies have had to send workers out to

gather much of the data needed to provide electricity. The workers read meters, look for broken equipment and measure voltage.

Continue…• Over many years coal and

other fossil fuels have used by power plants to generate electricity.

Continue…• Grid is a network of power

lines and substations that carry electricity from power plants to homes and appliances.

Continue…• Today grids have

problems, it needs updating and its running at its limits.

• When power lines break or power plants cannot produce enough power then blackouts occur.

Continue…• Today grids often rely on a

single power source, it does not provide detail information about usage. Making electricity difficult to manage.

Continue…• To overcome those

problems in the past, we simply make more power plants.

• But now we can work on sustainability, and reduce our dependency on fossil fuels by making smart grids.

How can we make grid smart?• The smart grid means

adding sensors and software to existing grids. That will gives them utilities and information.

• This will help them to react and understand problem quickly.

Advantages• Let tree falls on a transmission

line and 1000 homes lose their power.

• The current grid employees physically reroute power which take time.

• With smart grid, sensors and software will detect and reroute the power immediately. Limiting the issue to fewer homes.

Continue…• The price of electricity changes

throughout the day, but we cannot see it with the current meters at our homes.

• Expensive at peak hours and cheap at late night.

• With new meters you can use heavy load at cheap time.

• This provides control of energy bills and helps to prevent blackouts.

Continue…• Smart grid also means new

ways to use renewable energy.• Power generation can be

distributed across multiple sources, so the system is more stable and efficient.

• Its visibility to communicate and manage electricity, which makes a grid smart.

Continue…• By using smart grid we can

manage our electric bills, healthy environment and healthy economy.

MICROGRID• Introduction To Microgrid:

Continue…• What is Microgrid? • It is a small-scale power supply network that is

designed to provide power for a small community.• A micro grid is a local energy grid with control

capability, which means it can disconnect from the traditional grid and operate autonomously.

• It enables local power generation for local loads.

Continue…• It comprises of various small power generating sources

that makes it highly flexible and efficient.• It is connected to both the local generating units and

the utility grid thus preventing power outages.• Excess power can be sold to the utility grid.• Size of the Microgrid may range from housing estate to

municipal regions.

Continue…• Microgrid Components:

• Distributed Generation• Loads• Immediate storage• Controller• Point of Common Coupling

Continue…• Typical Microgrid is shown below:

Continue…• Pomelo, Indonesia - Village microgrid.

Microgrid Operating ModesGrid connected mode:• Connected through point of common coupling. • Bi-directional flow.• Economic benefit by supplying excess power to main grid.• Reduce fuel cost using the power from main grid during

low (night) load.• Island mode:• Isolated from main grid.

Continue…• During normal or peak usage, or at times of the primary

power grid failure.• A micro grid can operate independently of the larger grid • and isolate it’s generation nodes and power loads from

disturbance without affecting the larger grid's integrity.• Micro grid are  capable of feeding power back to the

larger grid during times of grid failure or power outages.

The Need Of Microgrid• Microgrid could be the answer to our energy crisis.• Transmission losses gets highly reduced.• Microgrid results in substantial savings and cuts

emissions without major changes to lifestyles.• Provide high quality and reliable energy supply to

critical loads.

Continue…• The primary purpose is to ensure local, reliable, and

affordable energy security for urban and rural communities.• while also providing solutions for commercial, industrial, and

federal government consumers.• Benefits that extend to utilities and the community at large

include lowering greenhouse gas (GHG) emissions and lowering stress on the transmission and distribution system.

Conventional Grid vs. Microgrid• Efficiency of conventional grid is very low as compared

to Microgrid.• Large amount of energy in the form of heat is wasted in

conventional grid.• Power sources in case of Microgrid (often referred to

as Microsources) are small and are located in close proximity to load.

Advantages & Disadvantages• Microgrid Disadvantages:• Voltage, frequency and power quality are three main parameters

that must be considered and controlled to acceptable standards whilst the power and energy balance is maintained.

• Electrical energy needs to be stored in battery banks thus requiring more space and maintenance.

• Resynchronization with the utility grid is difficult.• Micro grid protection is one of the most important challenges

facing the implementation of Micro grids.

Continue…• Integration with the Grid:• For reasons of reliability, distributed generation resources

would be interconnected to the same transmission grid as central stations.

• Various technical and economic issues occur in the integration of these resources into a grid.

• Technical problems arise in the areas of power quality, voltage stability, harmonics, reliability, protection, and control.

Continue…• Each distributed generation resource has its own integration issues.• Solar PV and wind power both have intermittent and unpredictable

generation, so they create many stability issues for voltage and frequency.

• These voltage issues effect mechanical grid equipment, such as load tap changers, who would respond too often and wear out much more quickly than utilities anticipated.

• Storage can fix these issues if it can be implemented.

HOW DOES A MICROGRID WORK?• To understand how a micro grid works, you first have to

understand how the grid works.• The grid connects homes, businesses and other buildings

to central power sources, which allow us to use appliances, heating/cooling systems and electronics.

• But this interconnectedness means that when part of the grid needs to be repaired, everyone is affected.

• This is where a micro grid can help.

Continue….• A micro grid generally operates while connected to the

grid, but importantly, it can break off and operate on its own using local energy generation in times of crisis like storms or power outages, or for other reasons.

• A micro grid can be powered by distributed generators, batteries, and/or renewable resources like solar panels.

• Depending on how it’s fueled and how its requirements are managed, a micro grid might run indefinitely.

COMPONENTS • Solar Panel.• Dc Batteries.• Ardiuno.• Charge Controller.

Solar Panel• We are using 60 Watts and 30 Watts.

Dc Batteries• In our project we are using two 24 AH dry Dc batteries.

Ardiuno• Ardiuno is a tool that is use for making computers that

can sense and control more of the physical world than your desktop computer.

• Ardiuno can be used to develop interactive objects, taking inputs from a variety of switches or sensors, and controlling a variety of lights, motors, and other physical outputs.

• The Ardiuno Uno can be powered via the USB connection or with an external power supply. The power source is selected automatically.

Continue…• Each of the 14 digital pins on the Uno can be used as an

input or output using pinMode (), digitalWrite ().• Serial: 0 (RX) and 1 (TX) is used to

receive (RX) and transmit (TX) serial data.

• There is a built-in LED connected to digital pin 13. When the pin is HIGH value, the LED is on, when the pin is LOW, it's off.

Arduino Software• The Ardiuno development environment contains a text

editor for writing code, a message area, a text console, a toolbar with buttons for common functions.

• It connects to the Ardiuno hardware to upload programs and communicate with them.

Charge Controller• It prevents overcharging and may protect

against overvoltage, which can reduce battery performance or lifespan.

•  Its function is to regulate the amount of charge coming from the panel that flows into the battery in order to avoid the batteries being overcharged.

• A regulator can also provide a direct connection to appliances, while continuing to recharge the battery; i.e. you can run appliances directly from it, bypassing the battery bank; but the batteries will continue to be charged.

Continue….• Charge controllers include displays of voltage and

current. 

SUMMARY• Now a days electricity demand has increased due to which

grids are at limits.• Instead of increasing generation of electricity through

fossil fuels we will make an efficient system that manages electricity.

• In that system we use renewable resources.• In our project we will make efficient managing system.