The document outlines a project focused on energy trading in microgrids, discussing concepts such as smart grids and their advantages over conventional grids. It highlights the importance of renewable energy resources and the role of smart energy management systems in facilitating energy exchanges among microgrids. The project aims to create an efficient system that manages electricity demands while utilizing local energy generation and reducing reliance on fossil fuels.

1. ENERGY TRADING
IN MICROGRIDS

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

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

4. 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.

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• 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.

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• We will handle these smart micro grids through smart energy management
system (SEMS) that can take care of all issues intelligently and efficiently.

7. 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.

8. Smart Grid
What 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.

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• 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.

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• Over many years coal and other
fossil fuels have used by power
plants to generate electricity.

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• Grid is a network of power lines
and substations that carry electricity
from power plants to homes and
appliances.

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• 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.

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• Today grids often rely on a single
power source, it does not provide
detail information about usage.
Making electricity difficult to
manage.

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• 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.

15. 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.

16. 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.

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• 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.

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• 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.

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• By using smart grid we can manage
our electric bills, healthy
environment and healthy economy.

20. MICROGRID
• Introduction To Microgrid:

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• 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.

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• 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.

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• Microgrid Components:
• Distributed Generation
• Loads
• Immediate storage
• Controller
• Point of Common Coupling

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• Typical Microgrid is shown below:

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• Pomelo, Indonesia - Village microgrid.

26. Microgrid Operating Modes
Grid 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.

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• 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.

28. 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.

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• 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.

30. 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.

31. 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.

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• 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.

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• 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.

34. 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.

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• 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.

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

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

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

39. 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.

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• 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.

41. 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.

43. 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.

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• Charge controllers include displays of voltage and current.

45. 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.