Optimal selection of generators in a microgrid for fuel usage minimization

In this paper we propose an approach for optimally selecting generators, interconnected to work together as a microgrid, based on solving the associated optimal dispatch problems by utilizing the Karush-Kuhn-Tucker (KKT) conditions. The approach ensures that the power demand is met at all times, whilst also minimizing the fuel consumption. As a result, the microgrid efficiency (in economic terms) is significantly improved. Microgrid stability, in terms of handling rapid load variations, is improved as well, since spinning reserve and swing capacity constraints are built into the algorithm. Furthermore, generator life is also addressed via rating constraints on each generation unit. Finally, startup and cool down costs are also considered, making the generator selection algorithm more realistic and closer to real-world practice.