Techno-Economic Analysis of Renewable-Energy-Based Micro-Grids Considering Incentive Policies

Renewable-energy-based microgrids (MGs) are being advocated around the world in response to increasing energy demand, high levels of greenhouse gas (GHG) emissions, energy losses, and the depletion of conventional energy resources. However, the high investment cost of the MGs besides the low selling price of the energy to the main grid are two main challenges to realize the MGs in developing countries such as Iran. For this reason, the government should define some incentive policies to attract investor attention to MGs. This paper aims to develop a framework for the optimal planning of a renewable energy-based MG considering the incentive policies. To investigate the effect of the incentive policies on the planning formulation, three different policies are introduced in a pilot system in Iran. The minimum penetration rates of the RESs in the MG to receive the government incentive are defined as 20% and 40% in two different scenarios. The results show that the proposed incentive policies reduce the MG’s total net present cost (NPC) and the amount of carbon dioxide (CO2) emissions. The maximum NPC and CO2 reduction in comparison with the base case (with incentive policies) are 22.87% and 56.13%, respectively. The simulations are conducted using the hybrid optimization model for electric renewables (HOMER) software.João Soares has received funding from FCT, namely CEECIND/02814/2017 and UIDB/00760/2020.info:eu-repo/semantics/publishedVersio

Probabilistic Power Distribution Planning Using Multi-Objective Harmony Search Algorithm

In this paper, power distribution planning (PDP) considering distributed generators (DGs) is investigated as a dynamic multi-objective optimization problem. Moreover, Monte Carlo simulation (MCS) is applied to handle the uncertainty in electricity price and load demand. In the proposed model, investment and operation costs, losses and purchased power from the main grid are incorporated in the first objective function, while pollution emission due to DGs and the grid is considered in the second objective function. One of the important advantages of the proposed objective function is a feeder and substation expansion in addition to an optimal placement of DGs. The resulted model is a mixed-integer non-linear one, which is solved using a non-dominated sorting improved harmony search algorithm (NSIHSA). As multi-objective optimization problems do not have a unique solution, to obtain the final optimum solution, fuzzy decision making analysis tagged with planner criteria is applied. To show the effectiveness of the proposed model and its solution, it is applied to a 9-node distribution system

Modeling Local Energy Market for Energy Management of Multi-Microgrids

The diffusion of distributed energy resources (DERs) has changed the supply-demand balance of power systems. One option to modernize the management of the electricity distribution is to operate the distribution system with interconnected micro-grids (MGs). However, the MG participation in wholesale energy and ancillary service markets creates several challenges in the interactions among the energy market managing entities. To solve these problems, local energy markets (LEMs) have been proposed, where the MGs can trade energy with each other under the management of the LEM manager (LEMM) to minimize their operation cost. In this paper, a local energy market is modeled for multi-MGs (MMGs) to minimize the operation cost of MGs individually and their social welfare in cooperation with each other. In such model, the optimal scheduling of the DERs in each MG is done through the market clearing process. To investigate the effectiveness of the proposed approach, the local energy market is applied to a distribution network with three MGs

A Risk-Based Decision Framework for the Distribution Company in Mutual Interaction with the Wholesale Day-ahead Market and Microgrids

One of the emergent prospects for active distribution networks ( DN ) is to establish new roles to the distribution company ( DISCO ). The DISCO can act as an aggregator of the resources existing in the DN , also when parts of the network are structured and managed as microgrids ( MG s). The new roles of the DISCO may open the participation of the DISCO as a player trading energy in the wholesale markets, as well as in local energy markets. In this paper, the decision making aspects involving the DISCO are addressed by proposing a bilevel optimization approach in which the DISCO problem is modeled as the upper-level problem and the MG s problems and day-ahead wholesale market clearing process are modeled as the lower-level problems. To include the uncertainty of renewable energy sources, a risk-based two-stage stochastic problem is formulated, in which the DISCO 's risk aversion is modeled by using the conditional value at risk. The resulting nonlinear bilevel model is transformed into a linear single-level one by applying the Karush–Kuhn–Tucker conditions and the duality theory. The effectiveness of the model is shown in the application to the IEEE 33-bus DN connected to the IEEE RTS 24-bus power system

Modeling Operation Problem of Micro-grids Considering Economical, Technical and Environmental issues as Mixed-Integer Non-Linear Programming

Reduction of fossil resources, increasing the production of greenhouse gas emissions and demand growth lead to greater use of distributed energy resources in power system especially in distribution networks. Integrating these resources in order to supply local loads creates a new concept called micro-grid. Optimal operation of micro-grid in the specific time period is one of the most important problems of them. In this paper, the operation problem of micro-grids is modeled considering the economical, technical and environmental issues, as well as uncertainties related to loads, wind speed and solar radiation. The resulting model is a Mixed-Integer Non-Linear Programming (MINLP). To demonstrate the effectiveness of the proposed model, Bisheh village in Iran is considered as a case study. The results showed that considering load curtailment costs, the power losses of the main grid, the penalties of pollutant gasses emissions and the elimination of energy subsides will tremendous impacts on the operation of microgrids. Article History: Received March 12, 2016; Received in revised form June 20, 2016; Accepted July 2nd 2016; Available online How to Cite This Article: Salahi, S., and Bahramara, S. (2016) Modeling Operation Problem of Micro-grids Considering Economical, Technical and Environmental issues as Mixed-Integer Non-Linear Programming. Int. Journal of Renewable Energy Development, 5(2), 139-149. http://dx.doi.org/10.14710/ijred.5.2.139-149 </p

Cloud energy storage in power systems: Concept, applications, and technical challenges

Abstract Cloud energy storage (CES) in the power systems is a novel idea for the consumers to get rid of the expensive distributed energy storages (DESs) and to move to using a cloud service centre as a virtual capacity. Although the different characteristics and applications of the energy storages are reviewed in some papers, there is no review study on the CES concepts, formulations, applications, and challenges. Therefore, the main contribution of this paper is to review the applications of the CES and its technical challenges in the power systems. For this purpose, the concept and fundamentals of the CES, as well as their role in supporting the consumers and the power network, are described first. The flow of information in a CES is then discussed, and the roles of the operator, consumers, and facilities, as the main sectors of the CES are explained. The existing studies are classified and discussed regarding the different applications of the CES in the power systems and their drawbacks are highlighted. The operation and planning (feasibility) problems of the CES are investigated. Reviewing the existing studies shows that comprehensive models are required to address the energy management (EM) and feasibility analysis of the CES applications. To address this challenge, the general formulations are presented for the planning and the operation scheduling problems of the CES. In addition, addressing different CES applications in the power systems leads to some technical challenges which are described. Finally, future directions are suggested for potential researchers to continue the studies on the CES integration and application