IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v16y2023i13p5088-d1184502.html

Modelling Smart Grid Technologies in Optimisation Problems for Electricity Grids

Author

Listed:
  • Spyros Giannelos

    (Department of Electrical and Electronic Engineering, Imperial College London, London SW7 2AZ, UK)

  • Stefan Borozan

    (Department of Electrical and Electronic Engineering, Imperial College London, London SW7 2AZ, UK)

  • Marko Aunedi

    (Department of Electrical and Electronic Engineering, Imperial College London, London SW7 2AZ, UK)

  • Xi Zhang

    (Department of Electrical and Electronic Engineering, Imperial College London, London SW7 2AZ, UK)

  • Hossein Ameli

    (Department of Electrical and Electronic Engineering, Imperial College London, London SW7 2AZ, UK)

  • Danny Pudjianto

    (Department of Electrical and Electronic Engineering, Imperial College London, London SW7 2AZ, UK)

  • Ioannis Konstantelos

    (Department of Electrical and Electronic Engineering, Imperial College London, London SW7 2AZ, UK)

  • Goran Strbac

    (Department of Electrical and Electronic Engineering, Imperial College London, London SW7 2AZ, UK)

Abstract

The decarbonisation of the electricity grid is expected to create new electricity flows. As a result, it may require that network planners make a significant amount of investments in the electricity grids over the coming decades so as to allow the accommodation of these new flows in a way that both the thermal and voltage network constraints are respected. These investments may include a portfolio of infrastructure assets consisting of traditional technologies and smart grid technologies. One associated key challenge is the presence of uncertainty around the location, the timing, and the amount of new demand or generation connections. This uncertainty unavoidably introduces risk into the investment decision-making process as it may lead to inefficient investments and inevitably give rise to excessive investment costs. Smart grid technologies have properties that enable them to be regarded as investment options, which can allow network planners to hedge against the aforementioned uncertainty. This paper focuses on key smart technologies by providing a critical literature review and presenting the latest mathematical modelling that describes their operation.

Suggested Citation

  • Spyros Giannelos & Stefan Borozan & Marko Aunedi & Xi Zhang & Hossein Ameli & Danny Pudjianto & Ioannis Konstantelos & Goran Strbac, 2023. "Modelling Smart Grid Technologies in Optimisation Problems for Electricity Grids," Energies, MDPI, vol. 16(13), pages 1-15, June.
    • Handle: RePEc:gam:jeners:v:16:y:2023:i:13:p:5088-:d:1184502
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/16/13/5088/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/16/13/5088/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Sun, Mingyang & Djapic, Predrag & Aunedi, Marko & Pudjianto, Danny & Strbac, Goran, 2019. "Benefits of smart control of hybrid heat pumps: An analysis of field trial data," Applied Energy, Elsevier, vol. 247(C), pages 525-536.
    2. Pindyck, Robert S, 1988. "Irreversible Investment, Capacity Choice, and the Value of the Firm," American Economic Review, American Economic Association, vol. 78(5), pages 969-985, December.
    3. Qiu, Dawei & Dong, Zihang & Zhang, Xi & Wang, Yi & Strbac, Goran, 2022. "Safe reinforcement learning for real-time automatic control in a smart energy-hub," Applied Energy, Elsevier, vol. 309(C).
    4. Pudjianto, Danny & Djapic, Predrag & Aunedi, Marko & Gan, Chin Kim & Strbac, Goran & Huang, Sikai & Infield, David, 2013. "Smart control for minimizing distribution network reinforcement cost due to electrification," Energy Policy, Elsevier, vol. 52(C), pages 76-84.
    5. Fei Teng & Danny Pudjianto & Marko Aunedi & Goran Strbac, 2018. "Assessment of Future Whole-System Value of Large-Scale Pumped Storage Plants in Europe," Energies, MDPI, vol. 11(1), pages 1-19, January.
    6. Robert McDonald & Daniel Siegel, 1986. "The Value of Waiting to Invest," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 101(4), pages 707-727.
    7. Lund, Henrik & Kempton, Willett, 2008. "Integration of renewable energy into the transport and electricity sectors through V2G," Energy Policy, Elsevier, vol. 36(9), pages 3578-3587, September.
    8. Spyros Giannelos & Stefan Borozan & Goran Strbac, 2022. "A Backwards Induction Framework for Quantifying the Option Value of Smart Charging of Electric Vehicles and the Risk of Stranded Assets under Uncertainty," Energies, MDPI, vol. 15(9), pages 1-22, May.
    9. Spyros Giannelos & Alexandre Moreira & Dimitrios Papadaskalopoulos & Stefan Borozan & Danny Pudjianto & Ioannis Konstantelos & Mingyang Sun & Goran Strbac, 2023. "A Machine Learning Approach for Generating and Evaluating Forecasts on the Environmental Impact of the Buildings Sector," Energies, MDPI, vol. 16(6), pages 1-37, March.
    10. Shabazbegian, Vahid & Ameli, Hossein & Ameli, Mohammad Taghi & Strbac, Goran & Qadrdan, Meysam, 2021. "Co-optimization of resilient gas and electricity networks; a novel possibilistic chance-constrained programming approach," Applied Energy, Elsevier, vol. 284(C).
    11. Taljegard, M. & Göransson, L. & Odenberger, M. & Johnsson, F., 2019. "Impacts of electric vehicles on the electricity generation portfolio – A Scandinavian-German case study," Applied Energy, Elsevier, vol. 235(C), pages 1637-1650.
    12. Dixit, Avinash K, 1989. "Entry and Exit Decisions under Uncertainty," Journal of Political Economy, University of Chicago Press, vol. 97(3), pages 620-638, June.
    13. Qiu, Dawei & Ye, Yujian & Papadaskalopoulos, Dimitrios & Strbac, Goran, 2021. "Scalable coordinated management of peer-to-peer energy trading: A multi-cluster deep reinforcement learning approach," Applied Energy, Elsevier, vol. 292(C).
    14. Georgiou, Solomos & Aunedi, Marko & Strbac, Goran & Markides, Christos N., 2020. "On the value of liquid-air and pumped-thermal electricity storage systems in low-carbon electricity systems," Energy, Elsevier, vol. 193(C).
    15. Manríquez, Francisco & Sauma, Enzo & Aguado, José & de la Torre, Sebastián & Contreras, Javier, 2020. "The impact of electric vehicle charging schemes in power system expansion planning," Applied Energy, Elsevier, vol. 262(C).
    16. Spyros Giannelos & Predrag Djapic & Danny Pudjianto & Goran Strbac, 2020. "Quantification of the Energy Storage Contribution to Security of Supply through the F-Factor Methodology," Energies, MDPI, vol. 13(4), pages 1-15, February.
    17. Mohammad Mehdi Davari & Hossein Ameli & Mohammad Taghi Ameli & Goran Strbac, 2022. "Impact of Local Emergency Demand Response Programs on the Operation of Electricity and Gas Systems," Energies, MDPI, vol. 15(6), pages 1-20, March.
    18. Spyros Giannelos & Anjali Jain & Stefan Borozan & Paola Falugi & Alexandre Moreira & Rohit Bhakar & Jyotirmay Mathur & Goran Strbac, 2021. "Long-Term Expansion Planning of the Transmission Network in India under Multi-Dimensional Uncertainty," Energies, MDPI, vol. 14(22), pages 1-27, November.
    19. Teng, Fei & Aunedi, Marko & Strbac, Goran, 2016. "Benefits of flexibility from smart electrified transportation and heating in the future UK electricity system," Applied Energy, Elsevier, vol. 167(C), pages 420-431.
    20. Zeng, Bo & Feng, Jiahuan & Zhang, Jianhua & Liu, Zongqi, 2017. "An optimal integrated planning method for supporting growing penetration of electric vehicles in distribution systems," Energy, Elsevier, vol. 126(C), pages 273-284.
    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. Masoumeh Sharifpour & Mohammad Taghi Ameli & Hossein Ameli & Goran Strbac, 2023. "A Resilience-Oriented Approach for Microgrid Energy Management with Hydrogen Integration during Extreme Events," Energies, MDPI, vol. 16(24), pages 1-18, December.
    2. Spyros Giannelos, 2025. "Reinforcement Learning in Energy Finance: A Comprehensive Review," Energies, MDPI, vol. 18(11), pages 1-41, May.
    3. Spyros Giannelos & Tai Zhang & Danny Pudjianto & Ioannis Konstantelos & Goran Strbac, 2024. "Investments in Electricity Distribution Grids: Strategic versus Incremental Planning," Energies, MDPI, vol. 17(11), pages 1-13, June.
    4. Tadeusz Białoń & Roman Niestrój & Wojciech Skarka & Wojciech Korski, 2023. "HPPC Test Methodology Using LFP Battery Cell Identification Tests as an Example," Energies, MDPI, vol. 16(17), pages 1-21, August.
    5. Dinçer, Hasan & Krishankumar, Raghunathan & Yüksel, Serhat & Ecer, Fatih, 2025. "Evaluating smart grid investment drivers and creating effective policies via a fuzzy multi-criteria approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 208(C).
    6. Giannelos, Spyros & Pudjianto, Danny & Strbac, Goran, 2025. "Smart home economic operation under uncertainty: comparing monte carlo and stochastic optimization using gaussian and KDE-based data," Operations Research Perspectives, Elsevier, vol. 15(C).
    7. John O’Donnell & Wencong Su, 2023. "A Stochastic Load Forecasting Approach to Prevent Transformer Failures and Power Quality Issues Amid the Evolving Electrical Demands Facing Utilities," Energies, MDPI, vol. 16(21), pages 1-23, October.
    8. Adriana Grigorescu & Victor Raul Lopez Ruiz & Cristina Lincaru & Elena Condrea, 2023. "Specialization Patterns for the Development of Renewable Energy Generation Technologies across Countries," Energies, MDPI, vol. 16(20), pages 1-26, October.
    9. Tai Zhang & Goran Strbac, 2025. "Novel Artificial Intelligence Applications in Energy: A Systematic Review," Energies, MDPI, vol. 18(14), pages 1-51, July.
    10. Ali Reza Kheirkhah & Carlos Frederico Meschini Almeida & Nelson Kagan & Jonatas Boas Leite, 2023. "Optimal Probabilistic Allocation of Photovoltaic Distributed Generation: Proposing a Scenario-Based Stochastic Programming Model," Energies, MDPI, vol. 16(21), pages 1-18, October.
    11. Spyros Giannelos & Xi Zhang & Tai Zhang & Goran Strbac, 2024. "Multi-Objective Optimization for Pareto Frontier Sensitivity Analysis in Power Systems," Sustainability, MDPI, vol. 16(14), pages 1-17, July.
    12. Mohammad Hemmati & Navid Bayati & Thomas Ebel, 2024. "Integrated Optimal Energy Management of Multi-Microgrid Network Considering Energy Performance Index: Global Chance-Constrained Programming Framework," Energies, MDPI, vol. 17(17), pages 1-22, September.
    13. Lang Zhao & Zhidong Wang & Hao Sheng & Yizheng Li & Xueying Wang & Yao Wang & Haifeng Yu, 2024. "Optimal Configuration Model for Large Capacity Synchronous Condenser Considering Transient Voltage Stability in Multiple UHV DC Receiving End Grids," Energies, MDPI, vol. 17(21), pages 1-21, October.
    14. Lin Wang & Yugang He & Renhong Wu, 2024. "Digitization Meets Energy Transition: Shaping the Future of Environmental Sustainability," Energies, MDPI, vol. 17(4), pages 1-25, February.
    15. Tai Zhang & Goran Strbac, 2025. "Artificial Intelligence Applications for Energy Storage: A Comprehensive Review," Energies, MDPI, vol. 18(17), pages 1-44, September.

    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. Giannelos, Spyros & Pudjianto, Danny & Strbac, Goran, 2025. "Smart home economic operation under uncertainty: comparing monte carlo and stochastic optimization using gaussian and KDE-based data," Operations Research Perspectives, Elsevier, vol. 15(C).
    2. Tsekrekos, Andrianos E., 2010. "The effect of mean reversion on entry and exit decisions under uncertainty," Journal of Economic Dynamics and Control, Elsevier, vol. 34(4), pages 725-742, April.
    3. Belke, Ansgar & Göcke, Matthias, 2019. "Interest rate hysteresis in macroeconomic investment under uncertainty," Ruhr Economic Papers 801, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    4. Almaghrabi, Khadija S., 2023. "Local product market competition and investment home bias," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 88(C).
    5. Alain Bensoussan & Benoît Chevalier-Roignant, 2019. "Sequential Capacity Expansion Options," Operations Research, INFORMS, vol. 67(1), pages 33-57, January.
    6. Dammann, Felix & Ferrari, Giorgio, 2021. "On an Irreversible Investment Problem with Two-Factor Uncertainty," Center for Mathematical Economics Working Papers 646, Center for Mathematical Economics, Bielefeld University.
    7. Jean-Paul Décamps & Thomas Mariotti & Stéphane Villeneuve, 2006. "Irreversible investment in alternative projects," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 28(2), pages 425-448, June.
    8. Rena Sivitanidou, 1999. "Does the Theory of Irreversible Investments Help Explain Movements in Office-Commerical Construction?," Working Paper 8659, USC Lusk Center for Real Estate.
    9. Nicholas Bloom & John Van Reenen, 2002. "Patents, Real Options and Firm Performance," Economic Journal, Royal Economic Society, vol. 112(478), pages 97-116, March.
    10. Sarkar, Sudipto, 2003. "The effect of mean reversion on investment under uncertainty," Journal of Economic Dynamics and Control, Elsevier, vol. 28(2), pages 377-396, November.
    11. Huberts, Nick F.D. & Rossi Silveira, Rafael, 2023. "How economic depreciation shapes the relationship of uncertainty with investments’ size & timing," International Journal of Production Economics, Elsevier, vol. 260(C).
    12. Bar-Ilan, Avner & Strange, William C., 1999. "The Timing and Intensity of Investment," Journal of Macroeconomics, Elsevier, vol. 21(1), pages 57-77, January.
    13. Choi, Jongmoo Jay & Ju, Ming & Trigeorgis, Lenos & Zhang, Xiaotian Tina, 2021. "Outsourcing flexibility under financial constraints," Journal of Corporate Finance, Elsevier, vol. 67(C).
    14. Tai Zhang & Goran Strbac, 2025. "Artificial Intelligence Applications for Energy Storage: A Comprehensive Review," Energies, MDPI, vol. 18(17), pages 1-44, September.
    15. Hanno Dihle, 2015. "Real Options in a Ramsey style Growth Model," Discussion Paper Series 32, Department of International Economic Policy, University of Freiburg, revised Dec 2015.
    16. Bulan, Laarni & Mayer, Christopher & Somerville, C. Tsuriel, 2009. "Irreversible investment, real options, and competition: Evidence from real estate development," Journal of Urban Economics, Elsevier, vol. 65(3), pages 237-251, May.
    17. Mason, Robin & Weeds, Helen, "undated". "Networks, Options and Preemption," Economic Research Papers 269346, University of Warwick - Department of Economics.
    18. Masci, Martín Ezequiel, 2012. "Irreversibilidad e incertidumbre de las decisiones financieras en i&d [Irreversibility and uncertainty of the financial investments on r&d]," MPRA Paper 40970, University Library of Munich, Germany.
    19. Kou, Ying & Luo, Meifeng, 2018. "Market driven ship investment decision using the real option approach," Transportation Research Part A: Policy and Practice, Elsevier, vol. 118(C), pages 714-729.
    20. Shackleton, Mark B. & Tsekrekos, Andrianos E. & Wojakowski, Rafal, 2004. "Strategic entry and market leadership in a two-player real options game," Journal of Banking & Finance, Elsevier, vol. 28(1), pages 179-201, January.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    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:gam:jeners:v:16:y:2023:i:13:p:5088-:d:1184502. 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: MDPI Indexing Manager The email address of this maintainer does not seem to be valid anymore. Please ask MDPI Indexing Manager to update the entry or send us the correct address (email available below). General contact details of provider: https://www.mdpi.com .

    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.