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Stochastic programming and market equilibrium analysis of microgrids energy management systems

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  • Hu, Ming-Che
  • Lu, Su-Ying
  • Chen, Yen-Haw

Abstract

Microgrids facilitate optimum utilization of distributed renewable energy, provides better local energy supply, and reduces transmission loss and greenhouse gas emission. Because the uncertainty in energy demand affects the energy demand and supply system, the aim of this research is to develop a stochastic optimization and its market equilibrium for microgrids in the electricity market. Therefore, a two-stage stochastic programming model for microgrids and the market competition model are derived in this paper. In the stochastic model, energy demand and supply uncertainties are considered. Furthermore, a case study of the stochastic model is conducted to simulate the uncertainties on the INER microgrids in Taiwanese market. The optimal investment of the generators and batteries installation and operating strategies are determined under energy demand and supply uncertainties for the INER microgrids. The results show optimal investment and operating strategies for the current INER microgrids are also determined by the proposed two-stage stochastic model in the market. In addition, trade-off between the battery capacity and microgrids performance is investigated. Battery usage and power trading between the microgrids and main grid systems are the functions of battery capacity.

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  • Hu, Ming-Che & Lu, Su-Ying & Chen, Yen-Haw, 2016. "Stochastic programming and market equilibrium analysis of microgrids energy management systems," Energy, Elsevier, vol. 113(C), pages 662-670.
    • Handle: RePEc:eee:energy:v:113:y:2016:i:c:p:662-670
    DOI: 10.1016/j.energy.2016.07.061
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    17. Moradi, Hadis & Esfahanian, Mahdi & Abtahi, Amir & Zilouchian, Ali, 2018. "Optimization and energy management of a standalone hybrid microgrid in the presence of battery storage system," Energy, Elsevier, vol. 147(C), pages 226-238.
    18. Aryani, Morteza & Ahmadian, Mohammad & Sheikh-El-Eslami, Mohammad-Kazem, 2021. "Coordination of risk-based generation investments in conventional and renewable capacities in oligopolistic electricity markets: A robust regulatory tool," Energy, Elsevier, vol. 214(C).
    19. Chen, Tengpeng & Cao, Yuhao & Qing, Xinlin & Zhang, Jingrui & Sun, Yuhao & Amaratunga, Gehan A.J., 2022. "Multi-energy microgrid robust energy management with a novel decision-making strategy," Energy, Elsevier, vol. 239(PA).
    20. Zhu, Junjie & Huang, Shengjun & Liu, Yajie & Lei, Hongtao & Sang, Bo, 2021. "Optimal energy management for grid-connected microgrids via expected-scenario-oriented robust optimization," Energy, Elsevier, vol. 216(C).
    21. Ussama Assad & Muhammad Arshad Shehzad Hassan & Umar Farooq & Asif Kabir & Muhammad Zeeshan Khan & S. Sabahat H. Bukhari & Zain ul Abidin Jaffri & Judit Oláh & József Popp, 2022. "Smart Grid, Demand Response and Optimization: A Critical Review of Computational Methods," Energies, MDPI, vol. 15(6), pages 1-36, March.
    22. Àlex Alonso-Travesset & Helena Martín & Sergio Coronas & Jordi de la Hoz, 2022. "Optimization Models under Uncertainty in Distributed Generation Systems: A Review," Energies, MDPI, vol. 15(5), pages 1-40, March.
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