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An MILP model for cost-optimal planning of an on-grid hybrid power system for an eco-industrial park

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  • Theo, Wai Lip
  • Lim, Jeng Shiun
  • Wan Alwi, Sharifah Rafidah
  • Mohammad Rozali, Nor Erniza
  • Ho, Wai Shin
  • Abdul-Manan, Zainuddin

Abstract

The application of on-grid hybrid power system (HPS) has been effective for harnessing renewable energy resources and ensuring environmental sustainability. A number of algebraic and mathematical modeling approaches have been introduced for the optimisation of on-grid HPS. While algebraic power pinch analysis (PoPA) tools have been developed to enable the selection of cost-effective energy storage technology, the available mathematical modeling approaches have yet to consider the economics and storage system selection in the design of an optimal on-grid HPS. This work presents a mixed-integer linear programming (MILP) for the optimal design of an on-grid HPS with the minimum net present value (NPV) of the overall electricity production cost and the selection of the optimum energy storage technology. Two case studies are presented in this work. In the former, the differences between the developed MILP model and previous methods are highlighted, with sensitivity analysis to investigate the impact of electricity tariff on the on-grid HPS. In the second case study, the developed MILP model was applied to an Eco-Industrial Park (EIP) case study with energy storage technology selection. Lead-acid battery system was found to be the optimal choice due to its low investment requirement.

Suggested Citation

  • Theo, Wai Lip & Lim, Jeng Shiun & Wan Alwi, Sharifah Rafidah & Mohammad Rozali, Nor Erniza & Ho, Wai Shin & Abdul-Manan, Zainuddin, 2016. "An MILP model for cost-optimal planning of an on-grid hybrid power system for an eco-industrial park," Energy, Elsevier, vol. 116(P2), pages 1423-1441.
    • Handle: RePEc:eee:energy:v:116:y:2016:i:p2:p:1423-1441
    DOI: 10.1016/j.energy.2016.05.043
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    3. Colmenar-Santos, Antonio & Molina-Ibáñez, Enrique-Luis & Rosales-Asensio, Enrique & Blanes-Peiró, Jorge-Juan, 2018. "Legislative and economic aspects for the inclusion of energy reserve by a superconducting magnetic energy storage: Application to the case of the Spanish electrical system," Renewable and Sustainable Energy Reviews, Elsevier, vol. 82(P3), pages 2455-2470.
    4. Liu, Wen Hui & Ho, Wai Shin & Lee, Ming Yang & Hashim, Haslenda & Lim, Jeng Shiun & Klemeš, Jiří J. & Mah, Angel Xin Yee, 2019. "Development and optimization of an integrated energy network with centralized and decentralized energy systems using mathematical modelling approach," Energy, Elsevier, vol. 183(C), pages 617-629.
    5. Laing, Harry & O'Malley, Chris & Browne, Anthony & Rutherford, Tony & Baines, Tony & Moore, Andrew & Black, Ken & Willis, Mark J., 2022. "Optimisation of energy usage and carbon emissions monitoring using MILP for an advanced anaerobic digester plant," Energy, Elsevier, vol. 256(C).
    6. Rech, S. & Lazzaretto, A., 2018. "Smart rules and thermal, electric and hydro storages for the optimum operation of a renewable energy system," Energy, Elsevier, vol. 147(C), pages 742-756.
    7. Lee, Jui-Yuan & Aviso, Kathleen B. & Tan, Raymond R., 2019. "Multi-objective optimisation of hybrid power systems under uncertainties," Energy, Elsevier, vol. 175(C), pages 1271-1282.
    8. Mohammad Rozali, Nor Erniza & Wan Alwi, Sharifah Rafidah & Manan, Zainuddin Abdul & Klemeš, Jiří Jaromír, 2016. "Process Integration for Hybrid Power System supply planning and demand management – A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 66(C), pages 834-842.
    9. Li, Tianxiao & Li, Zheng & Li, Weiqi, 2020. "Scenarios analysis on the cross-region integrating of renewable power based on a long-period cost-optimization power planning model," Renewable Energy, Elsevier, vol. 156(C), pages 851-863.
    10. Panda, Ambarish & Mishra, Umakanta & Aviso, Kathleen B., 2020. "Optimizing hybrid power systems with compressed air energy storage," Energy, Elsevier, vol. 205(C).
    11. Li, Jianwei & Xiong, Rui & Mu, Hao & Cornélusse, Bertrand & Vanderbemden, Philippe & Ernst, Damien & Yuan, Weijia, 2018. "Design and real-time test of a hybrid energy storage system in the microgrid with the benefit of improving the battery lifetime," Applied Energy, Elsevier, vol. 218(C), pages 470-478.
    12. Misrol, Mohd Arif & Wan Alwi, Sharifah Rafidah & Lim, Jeng Shiun & Manan, Zainuddin Abd, 2022. "Optimising renewable energy at the eco-industrial park: A mathematical modelling approach," Energy, Elsevier, vol. 261(PB).
    13. Jing Liu & Yongping Li & Guohe Huang & Cai Suo & Shuo Yin, 2017. "An Interval Fuzzy-Stochastic Chance-Constrained Programming Based Energy-Water Nexus Model for Planning Electric Power Systems," Energies, MDPI, vol. 10(11), pages 1-23, November.

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