IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v17y2025i6p2744-d1616023.html
   My bibliography  Save this article

Nested Optimization Algorithms for Accurately Sizing a Clean Energy Smart Grid System, Considering Uncertainties and Demand Response

Author

Listed:
  • Ali M. Eltamaly

    (Sustainable Energy Technologies Center, King Saud University, Riyadh 11421, Saudi Arabia)

  • Zeyad A. Almutairi

    (Sustainable Energy Technologies Center, King Saud University, Riyadh 11421, Saudi Arabia
    Mechanical Engineering Department, King Saud University, Riyadh 11421, Saudi Arabia)

Abstract

Driven by environmental concerns and dwindling fossil fuels, a global shift towards renewable energy for electricity generation is underway, with ambitions for complete reliance by 2050. However, the intermittent nature of renewable power creates a supply–demand mismatch. This challenge can be addressed through smart grid concepts that utilize demand-side management, energy storage systems, and weather/load forecasting. This study introduces a sizing technique for a clean energy smart grid (CESG) system that integrates these strategies. To optimize the design and sizing of the CESG, two nested approaches are proposed. The inner approach, “Optimal Operation,” is performed hourly to determine the most efficient operation for current conditions. The outer approach, “Optimal Sizing,” is conducted annually to identify the ideal size of grid components for maximum reliability and lowest cost. The detailed model incorporating component degradation predicted the operating conditions, showing that real-world conditions would make the internal loop computationally expensive. A lotus effect optimization algorithm (LEA) that demonstrated superior performance in many applications is utilized in this study to increase the convergence speed. Although there is a considerable reduction in the convergence time when using a nested LEA (NLEA), the convergence time is still long. To address this issue, this study proposes replacing the internal LEA loop with an artificial neural network, trained using data from the NLEA. This significantly reduces computation time while maintaining accuracy. Overall, the use of DR reduced the cost by about 28% compared with avoiding the use of DR. Moreover, the use of NLEA reduced the convergence time of the sizing problem by 43% compared with the best optimization algorithm used for comparison. The replacement of the inner LEA optimization loop reduced the convergence time of sizing the CESG to 1.08%, compared with the NLEA performance.

Suggested Citation

  • Ali M. Eltamaly & Zeyad A. Almutairi, 2025. "Nested Optimization Algorithms for Accurately Sizing a Clean Energy Smart Grid System, Considering Uncertainties and Demand Response," Sustainability, MDPI, vol. 17(6), pages 1-37, March.
  • Handle: RePEc:gam:jsusta:v:17:y:2025:i:6:p:2744-:d:1616023
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/17/6/2744/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/17/6/2744/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Talent, Orlando & Du, Haiping, 2018. "Optimal sizing and energy scheduling of photovoltaic-battery systems under different tariff structures," Renewable Energy, Elsevier, vol. 129(PA), pages 513-526.
    2. Mohamed, Mohamed A. & Jin, Tao & Su, Wencong, 2020. "Multi-agent energy management of smart islands using primal-dual method of multipliers," Energy, Elsevier, vol. 208(C).
    3. Zamani, Ali Ghahgharaee & Zakariazadeh, Alireza & Jadid, Shahram, 2016. "Day-ahead resource scheduling of a renewable energy based virtual power plant," Applied Energy, Elsevier, vol. 169(C), pages 324-340.
    4. Stephen Poletti & Julian Wright, 2020. "Real‐Time Pricing and Imperfect Competition in Electricity Markets," Journal of Industrial Economics, Wiley Blackwell, vol. 68(1), pages 93-135, March.
    5. Sanajaoba, Sarangthem & Fernandez, Eugene, 2016. "Maiden application of Cuckoo Search algorithm for optimal sizing of a remote hybrid renewable energy System," Renewable Energy, Elsevier, vol. 96(PA), pages 1-10.
    6. Yu, Mengmeng & Hong, Seung Ho, 2016. "Supply–demand balancing for power management in smart grid: A Stackelberg game approach," Applied Energy, Elsevier, vol. 164(C), pages 702-710.
    7. Rodrigo Martins & Holger C. Hesse & Johanna Jungbauer & Thomas Vorbuchner & Petr Musilek, 2018. "Optimal Component Sizing for Peak Shaving in Battery Energy Storage System for Industrial Applications," Energies, MDPI, vol. 11(8), pages 1-22, August.
    8. Krishna Mohan Reddy Pothireddy & Sandeep Vuddanti & Surender Reddy Salkuti, 2021. "Impact of Demand Response on Optimal Sizing of Distributed Generation and Customer Tariff," Energies, MDPI, vol. 15(1), pages 1-31, December.
    9. Mansouri, S.A. & Ahmarinejad, A. & Nematbakhsh, E. & Javadi, M.S. & Esmaeel Nezhad, A. & Catalão, J.P.S., 2022. "A sustainable framework for multi-microgrids energy management in automated distribution network by considering smart homes and high penetration of renewable energy resources," Energy, Elsevier, vol. 245(C).
    10. Zeyad A. Almutairi & Ali M. Eltamaly, 2024. "Synergistic Effects of Energy Storage Systems and Demand-Side Management in Optimizing Zero-Carbon Smart Grid Systems," Energies, MDPI, vol. 17(22), pages 1-32, November.
    11. Majed A. Alotaibi & Ali M. Eltamaly, 2021. "A Smart Strategy for Sizing of Hybrid Renewable Energy System to Supply Remote Loads in Saudi Arabia," Energies, MDPI, vol. 14(21), pages 1-24, October.
    12. Zou, Bin & Peng, Jinqing & Li, Sihui & Li, Yi & Yan, Jinyue & Yang, Hongxing, 2022. "Comparative study of the dynamic programming-based and rule-based operation strategies for grid-connected PV-battery systems of office buildings," Applied Energy, Elsevier, vol. 305(C).
    13. Torkan, Ramin & Ilinca, Adrian & Ghorbanzadeh, Milad, 2022. "A genetic algorithm optimization approach for smart energy management of microgrids," Renewable Energy, Elsevier, vol. 197(C), pages 852-863.
    14. Pommeret, Aude & Schubert, Katheline, 2022. "Optimal energy transition with variable and intermittent renewable electricity generation," Journal of Economic Dynamics and Control, Elsevier, vol. 134(C).
    15. Ali M. Eltamaly, 2023. "Smart Decentralized Electric Vehicle Aggregators for Optimal Dispatch Technologies," Energies, MDPI, vol. 16(24), pages 1-27, December.
    16. Emmanouil, Stergios & Nikolopoulos, Efthymios I. & François, Baptiste & Brown, Casey & Anagnostou, Emmanouil N., 2021. "Evaluating existing water supply reservoirs as small-scale pumped hydroelectric storage options – A case study in Connecticut," Energy, Elsevier, vol. 226(C).
    17. Ateyah Alzahrani & Ioan Petri & Yacine Rezgui & Ali Ghoroghi, 2020. "Developing Smart Energy Communities around Fishery Ports: Toward Zero-Carbon Fishery Ports," Energies, MDPI, vol. 13(11), pages 1-22, June.
    18. Berrueta, Alberto & Heck, Michael & Jantsch, Martin & Ursúa, Alfredo & Sanchis, Pablo, 2018. "Combined dynamic programming and region-elimination technique algorithm for optimal sizing and management of lithium-ion batteries for photovoltaic plants," Applied Energy, Elsevier, vol. 228(C), pages 1-11.
    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. Zeyad A. Almutairi & Ali M. Eltamaly, 2024. "Synergistic Effects of Energy Storage Systems and Demand-Side Management in Optimizing Zero-Carbon Smart Grid Systems," Energies, MDPI, vol. 17(22), pages 1-32, November.
    2. Akhlaque Ahmad Khan & Ahmad Faiz Minai & Rupendra Kumar Pachauri & Hasmat Malik, 2022. "Optimal Sizing, Control, and Management Strategies for Hybrid Renewable Energy Systems: A Comprehensive Review," Energies, MDPI, vol. 15(17), pages 1-29, August.
    3. Ma, Tao & Zhang, Yijie & Gu, Wenbo & Xiao, Gang & Yang, Hongxing & Wang, Shuxiao, 2022. "Strategy comparison and techno-economic evaluation of a grid-connected photovoltaic-battery system," Renewable Energy, Elsevier, vol. 197(C), pages 1049-1060.
    4. Tang, Rui & Yildiz, Baran & Leong, Philip H.W. & Vassallo, Anthony & Dore, Jonathon, 2019. "Residential battery sizing model using net meter energy data clustering," Applied Energy, Elsevier, vol. 251(C), pages 1-1.
    5. Zhang, Yijie & Ma, Tao & Yang, Hongxing, 2022. "Grid-connected photovoltaic battery systems: A comprehensive review and perspectives," Applied Energy, Elsevier, vol. 328(C).
    6. Keck, Felix & Lenzen, Manfred, 2021. "Drivers and benefits of shared demand-side battery storage – an Australian case study," Energy Policy, Elsevier, vol. 149(C).
    7. Yiqi Dong & Zuoji Dong, 2023. "Bibliometric Analysis of Game Theory on Energy and Natural Resource," Sustainability, MDPI, vol. 15(2), pages 1-19, January.
    8. Sajjad Ali & Imran Khan & Sadaqat Jan & Ghulam Hafeez, 2021. "An Optimization Based Power Usage Scheduling Strategy Using Photovoltaic-Battery System for Demand-Side Management in Smart Grid," Energies, MDPI, vol. 14(8), pages 1-29, April.
    9. Nassima Radouane, 2022. "A Comprehensive Review of Composite Phase Change Materials (cPCMs) for Thermal Management Applications, Including Manufacturing Processes, Performance, and Applications," Energies, MDPI, vol. 15(21), pages 1-28, November.
    10. Wang, Zhenni & Tan, Qiaofeng & Wen, Xin & Su, Huaying & Fang, Guohua & Wang, Hao, 2025. "Capacity optimization of retrofitting cascade hydropower plants with pumping stations for renewable energy integration: A case study," Applied Energy, Elsevier, vol. 377(PC).
    11. Sampath Kumar Venkatachary & Jagdish Prasad & Ravi Samikannu & Annamalai Alagappan & Leo John Baptist & Raymon Antony Raj, 2020. "Macro Economics of Virtual Power Plant for Rural Areas of Botswana," International Journal of Energy Economics and Policy, Econjournals, vol. 10(5), pages 196-207.
    12. Kai Ma & Shubing Hu & Jie Yang & Chunxia Dou & Josep M. Guerrero, 2017. "Energy Trading and Pricing in Microgrids with Uncertain Energy Supply: A Three-Stage Hierarchical Game Approach," Energies, MDPI, vol. 10(5), pages 1-16, May.
    13. Ahmadi, Seyed Ehsan & Sadeghi, Delnia & Marzband, Mousa & Abusorrah, Abdullah & Sedraoui, Khaled, 2022. "Decentralized bi-level stochastic optimization approach for multi-agent multi-energy networked micro-grids with multi-energy storage technologies," Energy, Elsevier, vol. 245(C).
    14. Wang, Tonghe & Hua, Haochen & Shi, Tianying & Wang, Rui & Sun, Yizhong & Naidoo, Pathmanathan, 2024. "A bi-level dispatch optimization of multi-microgrid considering green electricity consumption willingness under renewable portfolio standard policy," Applied Energy, Elsevier, vol. 356(C).
    15. Rodriguez, Mauricio & Arcos-Aviles, Diego & Guinjoan, Francesc, 2024. "Simple fuzzy logic-based energy management for power exchange in isolated multi-microgrid systems: A case study in a remote community in the Amazon region of Ecuador," Applied Energy, Elsevier, vol. 357(C).
    16. Reza Nadimi & Masahito Takahashi & Koji Tokimatsu & Mika Goto, 2024. "The Reliability and Profitability of Virtual Power Plant with Short-Term Power Market Trading and Non-Spinning Reserve Diesel Generator," Energies, MDPI, vol. 17(9), pages 1-19, April.
    17. Muhammad Umair Safder & Mohammad J. Sanjari & Ameer Hamza & Rasoul Garmabdari & Md. Alamgir Hossain & Junwei Lu, 2023. "Enhancing Microgrid Stability and Energy Management: Techniques, Challenges, and Future Directions," Energies, MDPI, vol. 16(18), pages 1-28, September.
    18. Gao, Datong & Zhao, Bin & Kwan, Trevor Hocksun & Hao, Yong & Pei, Gang, 2022. "The spatial and temporal mismatch phenomenon in solar space heating applications: status and solutions," Applied Energy, Elsevier, vol. 321(C).
    19. Khiareddine, Abla & Ben Salah, Chokri & Rekioua, Djamila & Mimouni, Mohamed Faouzi, 2018. "Sizing methodology for hybrid photovoltaic /wind/ hydrogen/battery integrated to energy management strategy for pumping system," Energy, Elsevier, vol. 153(C), pages 743-762.
    20. Yazhou Zhao & Xiangxi Qin & Xiangyu Shi, 2022. "A Comprehensive Evaluation Model on Optimal Operational Schedules for Battery Energy Storage System by Maximizing Self-Consumption Strategy and Genetic Algorithm," Sustainability, MDPI, vol. 14(14), pages 1-34, July.

    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:jsusta:v:17:y:2025:i:6:p:2744-:d:1616023. 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 (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.