A novel optimal electricity pricing method in microgrids based on customers’ participation levels

Abstract

The main focus of this paper is to determine floating smart tariffs for customers in a microgrid via the optimal energy scheduling and combination of PV system size and battery capacity. For a higher return on investment, increasing customers’ income and MGOs’ profits a novel smart tariff policy is presented. An optimization problem was formulated which resulted in a mixed integer linear programming (MILP). To verify the algorithm it’s evaluated on a microgrid with 850 DR-enabled customers. The simulation results show significant endusers’ bill decrement and also Peak and PAR index reduction for the aggregate load.