  This paper presents an optimal scheduling model for a microgrid participating
in the electricity distribution market in interaction with the Distribution
Market Operator (DMO). The DMO is a concept proposed here, which administers
the established electricity market in the distribution level, i.e., similar to
the role of Independent System Operator (ISO) in the wholesale electricity
market, sets electricity prices, determines the amounts of the power exchange
between market participators, and interacts with the ISO. Considering a
predetermined main grid power transfer to the microgrid, the microgrid
scheduling problem will aim at balancing the power supply and demand while
taking financial objectives into account. A stochastic programming method is
employed to model prevailing uncertainties in the microgrid grid-connected and
islanded operations. Numerical simulations exhibit the application and the
effectiveness of the proposed market-based microgrid scheduling model.
