IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v187y2017icp758-776.html
   My bibliography  Save this article

MOD-DR: Microgrid optimal dispatch with demand response

Author

Listed:
  • Jin, Ming
  • Feng, Wei
  • Liu, Ping
  • Marnay, Chris
  • Spanos, Costas

Abstract

In the face of unprecedented challenges of upcoming fossil fuel shortage and reliability and security of the grid, there is an increasing interest in adopting distributed, renewable, energy resources, such as microgrids (MGs), and engaging flexible electric loads in power system operations to potentially drive a paradigm shift in energy production and consumption patterns. Prior work on MG dispatch has leveraged decentralized technologies like combined heat and power (CHP) and heat pumps to promote efficiency and economic gains; however, the flexibility of demand has yet to be fully exploited in cooperation with the grid to offer added benefits and ancillary services. The object of the study is to develop microgrid optimal dispatch with demand response (MOD-DR), which fills in the gap by coordinating both the demand and supply sides in a renewable-integrated, storage-augmented, DR-enabled MG to achieve economically viable and system-wide resilient solutions. The key contribution of this paper is the formulation of a multi-objective optimization with prevailing constraints and utility trade-off based on the model of a large-scale MG with flexible loads, which leads to the derivation of strategies that incorporate uncertainty in scheduling. Evaluation using real datasets is conducted to analyze the uncertainty effects and demand response potentials, demonstrating in a campus prototype a 17.5% peak load reduction and 8.8% cost savings for MOD-DR compared to the non-trivial baseline, which is on par with the Oracle for perfect predictions.

Suggested Citation

  • Jin, Ming & Feng, Wei & Liu, Ping & Marnay, Chris & Spanos, Costas, 2017. "MOD-DR: Microgrid optimal dispatch with demand response," Applied Energy, Elsevier, vol. 187(C), pages 758-776.
    • Handle: RePEc:eee:appene:v:187:y:2017:i:c:p:758-776
    DOI: 10.1016/j.apenergy.2016.11.093
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S030626191631724X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.apenergy.2016.11.093?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Niknam, Taher & Azizipanah-Abarghooee, Rasoul & Narimani, Mohammad Rasoul, 2012. "An efficient scenario-based stochastic programming framework for multi-objective optimal micro-grid operation," Applied Energy, Elsevier, vol. 99(C), pages 455-470.
    2. Lu, Yuehong & Wang, Shengwei & Sun, Yongjun & Yan, Chengchu, 2015. "Optimal scheduling of buildings with energy generation and thermal energy storage under dynamic electricity pricing using mixed-integer nonlinear programming," Applied Energy, Elsevier, vol. 147(C), pages 49-58.
    3. Baziar, Aliasghar & Kavousi-Fard, Abdollah, 2013. "Considering uncertainty in the optimal energy management of renewable micro-grids including storage devices," Renewable Energy, Elsevier, vol. 59(C), pages 158-166.
    4. Morales, J.M. & Mínguez, R. & Conejo, A.J., 2010. "A methodology to generate statistically dependent wind speed scenarios," Applied Energy, Elsevier, vol. 87(3), pages 843-855, March.
    5. Weron, Rafał, 2014. "Electricity price forecasting: A review of the state-of-the-art with a look into the future," International Journal of Forecasting, Elsevier, vol. 30(4), pages 1030-1081.
    6. Li, Canbing & Shi, Haiqing & Cao, Yijia & Wang, Jianhui & Kuang, Yonghong & Tan, Yi & Wei, Jing, 2015. "Comprehensive review of renewable energy curtailment and avoidance: A specific example in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 41(C), pages 1067-1079.
    7. Shen, Bo & Ghatikar, Girish & Lei, Zeng & Li, Jinkai & Wikler, Greg & Martin, Phil, 2014. "The role of regulatory reforms, market changes, and technology development to make demand response a viable resource in meeting energy challenges," Applied Energy, Elsevier, vol. 130(C), pages 814-823.
    8. Kriett, Phillip Oliver & Salani, Matteo, 2012. "Optimal control of a residential microgrid," Energy, Elsevier, vol. 42(1), pages 321-330.
    9. Chen, Yen-Haw & Lu, Su-Ying & Chang, Yung-Ruei & Lee, Ta-Tung & Hu, Ming-Che, 2013. "Economic analysis and optimal energy management models for microgrid systems: A case study in Taiwan," Applied Energy, Elsevier, vol. 103(C), pages 145-154.
    10. Morais, Hugo & Kádár, Péter & Faria, Pedro & Vale, Zita A. & Khodr, H.M., 2010. "Optimal scheduling of a renewable micro-grid in an isolated load area using mixed-integer linear programming," Renewable Energy, Elsevier, vol. 35(1), pages 151-156.
    11. Delarue, Erik & D'haeseleer, William, 2008. "Adaptive mixed-integer programming unit commitment strategy for determining the value of forecasting," Applied Energy, Elsevier, vol. 85(4), pages 171-181, April.
    12. Zhao, Hai-xiang & Magoulès, Frédéric, 2012. "A review on the prediction of building energy consumption," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(6), pages 3586-3592.
    13. Patteeuw, Dieter & Bruninx, Kenneth & Arteconi, Alessia & Delarue, Erik & D’haeseleer, William & Helsen, Lieve, 2015. "Integrated modeling of active demand response with electric heating systems coupled to thermal energy storage systems," Applied Energy, Elsevier, vol. 151(C), pages 306-319.
    14. Weber, C. & Shah, N., 2011. "Optimisation based design of a district energy system for an eco-town in the United Kingdom," Energy, Elsevier, vol. 36(2), pages 1292-1308.
    15. Marzband, Mousa & Sumper, Andreas & Ruiz-Álvarez, Albert & Domínguez-García, José Luis & Tomoiagă, Bogdan, 2013. "Experimental evaluation of a real time energy management system for stand-alone microgrids in day-ahead markets," Applied Energy, Elsevier, vol. 106(C), pages 365-376.
    16. Ommen, Torben & Markussen, Wiebke Brix & Elmegaard, Brian, 2014. "Comparison of linear, mixed integer and non-linear programming methods in energy system dispatch modelling," Energy, Elsevier, vol. 74(C), pages 109-118.
    17. Kitapbayev, Yerkin & Moriarty, John & Mancarella, Pierluigi, 2015. "Stochastic control and real options valuation of thermal storage-enabled demand response from flexible district energy systems," Applied Energy, Elsevier, vol. 137(C), pages 823-831.
    18. Hibon, Michele & Evgeniou, Theodoros, 2005. "To combine or not to combine: selecting among forecasts and their combinations," International Journal of Forecasting, Elsevier, vol. 21(1), pages 15-24.
    19. Díaz, Guzmán & Moreno, Blanca, 2016. "Valuation under uncertain energy prices and load demands of micro-CHP plants supplemented by optimally switched thermal energy storage," Applied Energy, Elsevier, vol. 177(C), pages 553-569.
    20. Hawkes, A.D. & Leach, M.A., 2009. "Modelling high level system design and unit commitment for a microgrid," Applied Energy, Elsevier, vol. 86(7-8), pages 1253-1265, July.
    21. Blarke, Morten B., 2012. "Towards an intermittency-friendly energy system: Comparing electric boilers and heat pumps in distributed cogeneration," Applied Energy, Elsevier, vol. 91(1), pages 349-365.
    22. Greening, Lorna A., 2010. "Demand response resources: Who is responsible for implementation in a deregulated market?," Energy, Elsevier, vol. 35(4), pages 1518-1525.
    23. Sreedharan, P. & Farbes, J. & Cutter, E. & Woo, C.K. & Wang, J., 2016. "Microgrid and renewable generation integration: University of California, San Diego," Applied Energy, Elsevier, vol. 169(C), pages 709-720.
    24. Velik, Rosemarie & Nicolay, Pascal, 2014. "Grid-price-dependent energy management in microgrids using a modified simulated annealing triple-optimizer," Applied Energy, Elsevier, vol. 130(C), pages 384-395.
    25. Moghaddam, Amjad Anvari & Seifi, Alireza & Niknam, Taher, 2012. "Multi-operation management of a typical micro-grids using Particle Swarm Optimization: A comparative study," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(2), pages 1268-1281.
    26. Streckiene, Giedre & Martinaitis, Vytautas & Andersen, Anders N. & Katz, Jonas, 2009. "Feasibility of CHP-plants with thermal stores in the German spot market," Applied Energy, Elsevier, vol. 86(11), pages 2308-2316, November.
    27. Diagne, Maimouna & David, Mathieu & Lauret, Philippe & Boland, John & Schmutz, Nicolas, 2013. "Review of solar irradiance forecasting methods and a proposition for small-scale insular grids," Renewable and Sustainable Energy Reviews, Elsevier, vol. 27(C), pages 65-76.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jin, Ming & Feng, Wei & Marnay, Chris & Spanos, Costas, 2018. "Microgrid to enable optimal distributed energy retail and end-user demand response," Applied Energy, Elsevier, vol. 210(C), pages 1321-1335.
    2. Zhang, Jingrui & Wu, Yihong & Guo, Yiran & Wang, Bo & Wang, Hengyue & Liu, Houde, 2016. "A hybrid harmony search algorithm with differential evolution for day-ahead scheduling problem of a microgrid with consideration of power flow constraints," Applied Energy, Elsevier, vol. 183(C), pages 791-804.
    3. Niknam, Taher & Azizipanah-Abarghooee, Rasoul & Narimani, Mohammad Rasoul, 2012. "An efficient scenario-based stochastic programming framework for multi-objective optimal micro-grid operation," Applied Energy, Elsevier, vol. 99(C), pages 455-470.
    4. Ahmad Khan, Aftab & Naeem, Muhammad & Iqbal, Muhammad & Qaisar, Saad & Anpalagan, Alagan, 2016. "A compendium of optimization objectives, constraints, tools and algorithms for energy management in microgrids," Renewable and Sustainable Energy Reviews, Elsevier, vol. 58(C), pages 1664-1683.
    5. Velik, Rosemarie & Nicolay, Pascal, 2014. "Grid-price-dependent energy management in microgrids using a modified simulated annealing triple-optimizer," Applied Energy, Elsevier, vol. 130(C), pages 384-395.
    6. Zhao, Bo & Zhang, Xuesong & Li, Peng & Wang, Ke & Xue, Meidong & Wang, Caisheng, 2014. "Optimal sizing, operating strategy and operational experience of a stand-alone microgrid on Dongfushan Island," Applied Energy, Elsevier, vol. 113(C), pages 1656-1666.
    7. Parisio, Alessandra & Rikos, Evangelos & Tzamalis, George & Glielmo, Luigi, 2014. "Use of model predictive control for experimental microgrid optimization," Applied Energy, Elsevier, vol. 115(C), pages 37-46.
    8. Zhang, Di & Samsatli, Nouri J. & Hawkes, Adam D. & Brett, Dan J.L. & Shah, Nilay & Papageorgiou, Lazaros G., 2013. "Fair electricity transfer price and unit capacity selection for microgrids," Energy Economics, Elsevier, vol. 36(C), pages 581-593.
    9. Mavromatidis, Georgios & Orehounig, Kristina & Carmeliet, Jan, 2018. "A review of uncertainty characterisation approaches for the optimal design of distributed energy systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 88(C), pages 258-277.
    10. Pascual, Julio & Arcos-Aviles, Diego & Ursúa, Alfredo & Sanchis, Pablo & Marroyo, Luis, 2021. "Energy management for an electro-thermal renewable–based residential microgrid with energy balance forecasting and demand side management," Applied Energy, Elsevier, vol. 295(C).
    11. Pascual, Julio & Barricarte, Javier & Sanchis, Pablo & Marroyo, Luis, 2015. "Energy management strategy for a renewable-based residential microgrid with generation and demand forecasting," Applied Energy, Elsevier, vol. 158(C), pages 12-25.
    12. Díaz, Guzmán & Moreno, Blanca, 2016. "Valuation under uncertain energy prices and load demands of micro-CHP plants supplemented by optimally switched thermal energy storage," Applied Energy, Elsevier, vol. 177(C), pages 553-569.
    13. Chen, Yen-Haw & Lu, Su-Ying & Chang, Yung-Ruei & Lee, Ta-Tung & Hu, Ming-Che, 2013. "Economic analysis and optimal energy management models for microgrid systems: A case study in Taiwan," Applied Energy, Elsevier, vol. 103(C), pages 145-154.
    14. Bhowmik, Chiranjib & Bhowmik, Sumit & Ray, Amitava & Pandey, Krishna Murari, 2017. "Optimal green energy planning for sustainable development: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 71(C), pages 796-813.
    15. Mazzola, Simone & Astolfi, Marco & Macchi, Ennio, 2015. "A detailed model for the optimal management of a multigood microgrid," Applied Energy, Elsevier, vol. 154(C), pages 862-873.
    16. Deihimi, Ali & Keshavarz Zahed, Babak & Iravani, Reza, 2016. "An interactive operation management of a micro-grid with multiple distributed generations using multi-objective uniform water cycle algorithm," Energy, Elsevier, vol. 106(C), pages 482-509.
    17. de la Hoz, Jordi & Martín, Helena & Alonso, Alex & Carolina Luna, Adriana & Matas, José & Vasquez, Juan C. & Guerrero, Josep M., 2019. "Regulatory-framework-embedded energy management system for microgrids: The case study of the Spanish self-consumption scheme," Applied Energy, Elsevier, vol. 251(C), pages 1-1.
    18. Mohammad Ali Taghikhani & Behnam Zangeneh, 2022. "Optimal energy scheduling of micro-grids considering the uncertainty of solar and wind renewable resources," Journal of Scheduling, Springer, vol. 25(5), pages 567-576, October.
    19. Shin, Joohyun & Lee, Jay H. & Realff, Matthew J., 2017. "Operational planning and optimal sizing of microgrid considering multi-scale wind uncertainty," Applied Energy, Elsevier, vol. 195(C), pages 616-633.
    20. Roslan, M.F. & Hannan, M.A. & Jern Ker, Pin & Begum, R.A. & Indra Mahlia, TM & Dong, Z.Y., 2021. "Scheduling controller for microgrids energy management system using optimization algorithm in achieving cost saving and emission reduction," Applied Energy, Elsevier, vol. 292(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:appene:v:187:y:2017:i:c:p:758-776. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.