IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v153y2018icp324-337.html
   My bibliography  Save this article

Robust cost-risk tradeoff for day-ahead schedule optimization in residential microgrid system under worst-case conditional value-at-risk consideration

Author

Listed:
  • Ji, Ling
  • Huang, Guohe
  • Xie, Yulei
  • Zhou, Yong
  • Zhou, Jifang

Abstract

With the deregulation of electricity market and the penetration of renewable energy, microgrid system operators may encounter more difficulties in operation management when facing complex economic, technological, and political uncertainties. In this paper, a robust cost-risk tradeoff model is developed for day-ahead schedule optimization in residential microgrid system under uncertainties. This method is an integration of inexact two-stage stochastic programming and worst-case conditional value-at-risk theory, and could handle uncertainties with inexact or partly known probability distribution information. Besides, by introducing the financial risk measurement, it could also hedge against the worst-case scenario caused by multiple independent uncertainties. The proposed model was applied to a hypothetical residential microgrid system with combined heat and power generation for obtaining optimal day-ahead schedule strategies under variable conditions with respect to renewable energy generation, power demand, and electricity market price. The obtained solutions demonstrate that the proposed model could reflect better tradeoff information between economic operation and stable performance according to different risk-aversion attitudes. In general, more conservative risk attitude would be coupled with higher system cost, which implies higher system stability is at the expense of the economic costs. The developed robust cost-risk tradeoff method would be expected to have a potential for wide applications.

Suggested Citation

  • Ji, Ling & Huang, Guohe & Xie, Yulei & Zhou, Yong & Zhou, Jifang, 2018. "Robust cost-risk tradeoff for day-ahead schedule optimization in residential microgrid system under worst-case conditional value-at-risk consideration," Energy, Elsevier, vol. 153(C), pages 324-337.
    • Handle: RePEc:eee:energy:v:153:y:2018:i:c:p:324-337
    DOI: 10.1016/j.energy.2018.04.037
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544218306418
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2018.04.037?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. Xie, Y.L. & Xia, D.H. & Ji, L. & Zhou, W.N. & Huang, G.H., 2017. "An inexact cost-risk balanced model for regional energy structure adjustment management and resources environmental effect analysis-a case study of Shandong province, China," Energy, Elsevier, vol. 126(C), pages 374-391.
    2. Jin, Xiaolong & Mu, Yunfei & Jia, Hongjie & Wu, Jianzhong & Xu, Xiandong & Yu, Xiaodan, 2016. "Optimal day-ahead scheduling of integrated urban energy systems," Applied Energy, Elsevier, vol. 180(C), pages 1-13.
    3. Xu, Jin & Kanyingi, Peter Kairu & Wang, Keyou & Li, Guojie & Han, Bei & Jiang, Xiuchen, 2017. "Probabilistic small signal stability analysis with large scale integration of wind power considering dependence," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 1258-1270.
    4. Amirioun, Mohammad Hassan & Kazemi, Ahad, 2014. "A new model based on optimal scheduling of combined energy exchange modes for aggregation of electric vehicles in a residential complex," Energy, Elsevier, vol. 69(C), pages 186-198.
    5. Yang, Yun & Zhang, Shijie & Xiao, Yunhan, 2015. "An MILP (mixed integer linear programming) model for optimal design of district-scale distributed energy resource systems," Energy, Elsevier, vol. 90(P2), pages 1901-1915.
    6. Ji, Ling & Huang, Guo-He & Huang, Lu-Cheng & Xie, Yu-Lei & Niu, Dong-Xiao, 2016. "Inexact stochastic risk-aversion optimal day-ahead dispatch model for electricity system management with wind power under uncertainty," Energy, Elsevier, vol. 109(C), pages 920-932.
    7. Mena, Rodrigo & Hennebel, Martin & Li, Yan-Fu & Zio, Enrico, 2016. "A multi-objective optimization framework for risk-controlled integration of renewable generation into electric power systems," Energy, Elsevier, vol. 106(C), pages 712-727.
    8. Wouters, Carmen & Fraga, Eric S. & James, Adrian M., 2015. "An energy integrated, multi-microgrid, MILP (mixed-integer linear programming) approach for residential distributed energy system planning – A South Australian case-study," Energy, Elsevier, vol. 85(C), pages 30-44.
    9. Nosratabadi, Seyyed Mostafa & Hooshmand, Rahmat-Allah & Gholipour, Eskandar, 2017. "A comprehensive review on microgrid and virtual power plant concepts employed for distributed energy resources scheduling in power systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 67(C), pages 341-363.
    10. Shushang Zhu & Masao Fukushima, 2009. "Worst-Case Conditional Value-at-Risk with Application to Robust Portfolio Management," Operations Research, INFORMS, vol. 57(5), pages 1155-1168, October.
    11. Dai, Rui & Hu, Mengqi & Yang, Dong & Chen, Yang, 2015. "A collaborative operation decision model for distributed building clusters," Energy, Elsevier, vol. 84(C), pages 759-773.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wang, Bo & Zhou, Min & Xin, Bo & Zhao, Xin & Watada, Junzo, 2019. "Analysis of operation cost and wind curtailment using multi-objective unit commitment with battery energy storage," Energy, Elsevier, vol. 178(C), pages 101-114.
    2. Mohammadpour Shotorbani, Amin & Zeinal-Kheiri, Sevda & Chhipi-Shrestha, Gyan & Mohammadi-Ivatloo, Behnam & Sadiq, Rehan & Hewage, Kasun, 2021. "Enhanced real-time scheduling algorithm for energy management in a renewable-integrated microgrid," Applied Energy, Elsevier, vol. 304(C).
    3. Shahryari, E. & Shayeghi, H. & Mohammadi-ivatloo, B. & Moradzadeh, M., 2019. "A copula-based method to consider uncertainties for multi-objective energy management of microgrid in presence of demand response," Energy, Elsevier, vol. 175(C), pages 879-890.
    4. Whei-Min Lin & Chung-Yuen Yang & Chia-Sheng Tu & Ming-Tang Tsai, 2018. "An Optimal Scheduling Dispatch of a Microgrid under Risk Assessment," Energies, MDPI, vol. 11(6), pages 1-17, June.
    5. Liu, Yangyang & Shen, Zhongqi & Tang, Xiaowei & Lian, Hongbo & Li, Jiarui & Gong, Jinxia, 2019. "Worst-case conditional value-at-risk based bidding strategy for wind-hydro hybrid systems under probability distribution uncertainties," Applied Energy, Elsevier, vol. 256(C).
    6. Ruixin Gou & Guiping He & Bo Yu & Yanli Xiao & Zhiwei Luo & Yulei Xie, 2022. "An Integrated Energy System Operation Optimization Model for Water Consumption Control Analysis in Park Scale from the Perspective of Energy–Water Nexus," Energies, MDPI, vol. 15(12), pages 1-12, June.
    7. Shi, Ruifeng & Li, Shaopeng & Zhang, Penghui & Lee, Kwang Y., 2020. "Integration of renewable energy sources and electric vehicles in V2G network with adjustable robust optimization," Renewable Energy, Elsevier, vol. 153(C), pages 1067-1080.
    8. Yang, Jun & Su, Changqi, 2021. "Robust optimization of microgrid based on renewable distributed power generation and load demand uncertainty," Energy, Elsevier, vol. 223(C).
    9. Yuwei Wang & Yuanjuan Yang & Liu Tang & Wei Sun & Huiru Zhao, 2019. "A Stochastic-CVaR Optimization Model for CCHP Micro-Grid Operation with Consideration of Electricity Market, Wind Power Accommodation and Multiple Demand Response Programs," Energies, MDPI, vol. 12(20), pages 1-33, October.
    10. Angelina D. Bintoudi & Lampros Zyglakis & Apostolos C. Tsolakis & Paschalis A. Gkaidatzis & Athanasios Tryferidis & Dimosthenis Ioannidis & Dimitrios Tzovaras, 2021. "OptiMEMS: An Adaptive Lightweight Optimal Microgrid Energy Management System Based on the Novel Virtual Distributed Energy Resources in Real-Life Demonstration," Energies, MDPI, vol. 14(10), pages 1-19, May.
    11. 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).
    12. Jianwei Gao & Yu Yang & Fangjie Gao & Pengcheng Liang, 2021. "Optimization of Electric Vehicles Based on Frank-Copula- GlueCVaR Combined Wind and Photovoltaic Output Scheduling Research," Energies, MDPI, vol. 14(19), pages 1-15, September.
    13. 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.

    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. Alqahtani, Mohammed & Hu, Mengqi, 2022. "Dynamic energy scheduling and routing of multiple electric vehicles using deep reinforcement learning," Energy, Elsevier, vol. 244(PA).
    2. Golpîra, Hêriş, 2020. "Smart Energy-Aware Manufacturing Plant Scheduling under Uncertainty: A Risk-Based Multi-Objective Robust Optimization Approach," Energy, Elsevier, vol. 209(C).
    3. Yokoyama, Ryohei & Shinano, Yuji & Taniguchi, Syusuke & Wakui, Tetsuya, 2019. "Search for K-best solutions in optimal design of energy supply systems by an extended MILP hierarchical branch and bound method," Energy, Elsevier, vol. 184(C), pages 45-57.
    4. Zheng, Lingwei & Zhou, Xingqiu & Qiu, Qi & Yang, Lan, 2020. "Day-ahead optimal dispatch of an integrated energy system considering time-frequency characteristics of renewable energy source output," Energy, Elsevier, vol. 209(C).
    5. Alqahtani, Mohammed & Hu, Mengqi, 2020. "Integrated energy scheduling and routing for a network of mobile prosumers," Energy, Elsevier, vol. 200(C).
    6. Ma, Tengfei & Wu, Junyong & Hao, Liangliang & Lee, Wei-Jen & Yan, Huaguang & Li, Dezhi, 2018. "The optimal structure planning and energy management strategies of smart multi energy systems," Energy, Elsevier, vol. 160(C), pages 122-141.
    7. Ding, Yan & Wang, Qiaochu & Tian, Zhe & Lyu, Yacong & Li, Feng & Yan, Zhe & Xia, Xi, 2023. "A graph-theory-based dynamic programming planning method for distributed energy system planning: Campus area as a case study," Applied Energy, Elsevier, vol. 329(C).
    8. Gabrielli, Paolo & Fürer, Florian & Mavromatidis, Georgios & Mazzotti, Marco, 2019. "Robust and optimal design of multi-energy systems with seasonal storage through uncertainty analysis," Applied Energy, Elsevier, vol. 238(C), pages 1192-1210.
    9. Roldán-Blay, Carlos & Escrivá-Escrivá, Guillermo & Roldán-Porta, Carlos & Álvarez-Bel, Carlos, 2017. "An optimisation algorithm for distributed energy resources management in micro-scale energy hubs," Energy, Elsevier, vol. 132(C), pages 126-135.
    10. Ge, Yi & Han, Jitian & Ma, Qingzhao & Feng, Jiahui, 2022. "Optimal configuration and operation analysis of solar-assisted natural gas distributed energy system with energy storage," Energy, Elsevier, vol. 246(C).
    11. Gou, Xing & Chen, Qun & Sun, Yong & Ma, Huan & Li, Bao-Ju, 2021. "Holistic analysis and optimization of distributed energy system considering different transport characteristics of multi-energy and component efficiency variation," Energy, Elsevier, vol. 228(C).
    12. Gui, Yonghao & Wei, Baoze & Li, Mingshen & Guerrero, Josep M. & Vasquez, Juan C., 2018. "Passivity-based coordinated control for islanded AC microgrid," Applied Energy, Elsevier, vol. 229(C), pages 551-561.
    13. Ioana Gutu & Daniela Tatiana Agheorghiesei & Alexandru Tugui, 2023. "Assessment of a Workforce Sustainability Tool through Leadership and Digitalization," IJERPH, MDPI, vol. 20(2), pages 1-30, January.
    14. Emrani-Rahaghi, Pouria & Hashemi-Dezaki, Hamed & Ketabi, Abbas, 2023. "Efficient voltage control of low voltage distribution networks using integrated optimized energy management of networked residential multi-energy microgrids," Applied Energy, Elsevier, vol. 349(C).
    15. Chi, Lixun & Su, Huai & Zio, Enrico & Zhang, Jinjun & Li, Xueyi & Zhang, Li & Fan, Lin & Zhou, Jing & Bai, Hua, 2020. "Integrated Deterministic and Probabilistic Safety Analysis of Integrated Energy Systems with bi-directional conversion," Energy, Elsevier, vol. 212(C).
    16. Zhang, Nan & Jin, Zhuo & Li, Shuanming & Chen, Ping, 2016. "Optimal reinsurance under dynamic VaR constraint," Insurance: Mathematics and Economics, Elsevier, vol. 71(C), pages 232-243.
    17. Andoni, Merlinda & Robu, Valentin & Flynn, David & Abram, Simone & Geach, Dale & Jenkins, David & McCallum, Peter & Peacock, Andrew, 2019. "Blockchain technology in the energy sector: A systematic review of challenges and opportunities," Renewable and Sustainable Energy Reviews, Elsevier, vol. 100(C), pages 143-174.
    18. Qiu, Ruozhen & Sun, Minghe & Lim, Yun Fong, 2017. "Optimizing (s, S) policies for multi-period inventory models with demand distribution uncertainty: Robust dynamic programing approaches," European Journal of Operational Research, Elsevier, vol. 261(3), pages 880-892.
    19. Clarke, Fiona & Dorneanu, Bogdan & Mechleri, Evgenia & Arellano-Garcia, Harvey, 2021. "Optimal design of heating and cooling pipeline networks for residential distributed energy resource systems," Energy, Elsevier, vol. 235(C).
    20. Zheng, Bingle & Wu, Xiao, 2022. "Integrated capacity configuration and control optimization of off-grid multiple energy system for transient performance improvement," Applied Energy, Elsevier, vol. 311(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:energy:v:153:y:2018:i:c:p:324-337. 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.journals.elsevier.com/energy .

    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.