Practice Summary: Improved Reliability via Optimization in Residential Microgrids

Published Online:https://doi.org/10.1287/inte.2020.1030

Southern Company is an electric utility that is embracing residential microgrids as a platform for distributed energy. The first residential microgrid in the southeastern United States was constructed in Hoover, Alabama, as a testbed for development. To operate the microgrid, we developed an optimization model for unit commitment and economic dispatch. The optimization model was implemented in a microgrid central controller and tested under various operational scenarios. Challenges also include developing a pricing algorithm to deliver price forecasts to the residential homes in the microgrid and open-source software restrictions.

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