IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v103y2013icp145-154.html
   My bibliography  Save this article

Economic analysis and optimal energy management models for microgrid systems: A case study in Taiwan

Author

Listed:
  • Chen, Yen-Haw
  • Lu, Su-Ying
  • Chang, Yung-Ruei
  • Lee, Ta-Tung
  • Hu, Ming-Che

Abstract

The purpose of this research is to perform economic analysis, formulate an optimization model, and determine optimal operating strategies for smart microgrid systems. Microgrid systems are electricity supply systems that integrate distributed renewable energy production for local demand. Microgrids are able to reduce transmission losses and improve utilization efficiency of electricity and heat. Further, greenhouse gas emissions are reduced by utilizing an efficient power generation microgrid system. This study presents an energy management model that is used to determine optimal operating strategies with maximum profit for a microgrid system in Taiwan. The smart microgrid system is equipped with energy storage devices, photovoltaic power, and wind power generation systems. Sensitivity analyses of investment in storage capacity and growth in electricity demand are conducted for the smart microgrid model. The results show that appropriate battery capacity should be determined on the basis of both battery efficiency and power supply.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:appene:v:103:y:2013:i:c:p:145-154
    DOI: 10.1016/j.apenergy.2012.09.023
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261912006642
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.apenergy.2012.09.023?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. Moisés Costa, Paulo & Matos, Manuel A., 2010. "Capacity credit of microgeneration and microgrids," Energy Policy, Elsevier, vol. 38(10), pages 6330-6337, October.
    3. Siddiqui, Afzal S. & Maribu, Karl, 2009. "Investment and upgrade in distributed generation under uncertainty," Energy Economics, Elsevier, vol. 31(1), pages 25-37, January.
    4. Lu, D. & Fakham, H. & Zhou, T. & François, B., 2010. "Application of Petri nets for the energy management of a photovoltaic based power station including storage units," Renewable Energy, Elsevier, vol. 35(6), pages 1117-1124.
    5. Toledo, Olga Moraes & Oliveira Filho, Delly & Diniz, Antônia Sônia Alves Cardoso, 2010. "Distributed photovoltaic generation and energy storage systems: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(1), pages 506-511, January.
    6. Hogan, William W, 1992. "Contract Networks for Electric Power Transmission," Journal of Regulatory Economics, Springer, vol. 4(3), pages 211-242, September.
    7. Abu-Sharkh, S. & Arnold, R.J. & Kohler, J. & Li, R. & Markvart, T. & Ross, J.N. & Steemers, K. & Wilson, P. & Yao, R., 2006. "Can microgrids make a major contribution to UK energy supply?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 10(2), pages 78-127, April.
    8. Ren, Hongbo & Zhou, Weisheng & Nakagami, Ken'ichi & Gao, Weijun & Wu, Qiong, 2010. "Multi-objective optimization for the operation of distributed energy systems considering economic and environmental aspects," Applied Energy, Elsevier, vol. 87(12), pages 3642-3651, December.
    9. Chaurey, A. & Kandpal, T.C., 2010. "A techno-economic comparison of rural electrification based on solar home systems and PV microgrids," Energy Policy, Elsevier, vol. 38(6), pages 3118-3129, June.
    10. Kelleher, J. & Ringwood, J.V., 2009. "A computational tool for evaluating the economics of solar and wind microgeneration of electricity," Energy, Elsevier, vol. 34(4), pages 401-409.
    11. Kamel, Rashad M. & Chaouachi, Aymen & Nagasaka, Ken, 2010. "Wind power smoothing using fuzzy logic pitch controller and energy capacitor system for improvement Micro-Grid performance in islanding mode," Energy, Elsevier, vol. 35(5), pages 2119-2129.
    12. Trujillo, C.L. & Velasco, D. & Figueres, E. & Garcerá, G. & Ortega, R., 2011. "Modeling and control of a push-pull converter for photovoltaic microinverters operating in island mode," Applied Energy, Elsevier, vol. 88(8), pages 2824-2834, August.
    13. Niknam, Taher & Khodaei, Amin & Fallahi, Farhad, 2009. "A new decomposition approach for the thermal unit commitment problem," Applied Energy, Elsevier, vol. 86(9), pages 1667-1674, September.
    14. Ren, Hongbo & Gao, Weijun, 2010. "A MILP model for integrated plan and evaluation of distributed energy systems," Applied Energy, Elsevier, vol. 87(3), pages 1001-1014, March.
    15. 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.
    16. Vachirasricirikul, Sitthidet & Ngamroo, Issarachai, 2011. "Robust controller design of heat pump and plug-in hybrid electric vehicle for frequency control in a smart microgrid based on specified-structure mixed H2/H∞ control technique," Applied Energy, Elsevier, vol. 88(11), pages 3860-3868.
    17. Giannoulis, E.D. & Haralambopoulos, D.A., 2011. "Distributed Generation in an isolated grid: Methodology of case study for Lesvos - Greece," Applied Energy, Elsevier, vol. 88(7), pages 2530-2540, July.
    18. Zamora, Ramon & Srivastava, Anurag K., 2010. "Controls for microgrids with storage: Review, challenges, and research needs," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(7), pages 2009-2018, September.
    19. Siddiqui, Afzal S. & Marnay, Chris, 2008. "Distributed generation investment by a microgrid under uncertainty," Energy, Elsevier, vol. 33(12), pages 1729-1737.
    20. 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.
    21. Tsikalakis, A.G. & Hatziargyriou, N.D., 2007. "Environmental benefits of distributed generation with and without emissions trading," Energy Policy, Elsevier, vol. 35(6), pages 3395-3409, June.
    22. Costa, Paulo Moisés & Matos, Manuel A. & Peças Lopes, J.A., 2008. "Regulation of microgeneration and microgrids," Energy Policy, Elsevier, vol. 36(10), pages 3893-3904, October.
    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. Hu, Ming-Che & Lu, Su-Ying & Chen, Yen-Haw, 2016. "Stochastic programming and market equilibrium analysis of microgrids energy management systems," Energy, Elsevier, vol. 113(C), pages 662-670.
    2. Naraharisetti, Pavan Kumar & Karimi, I.A. & Anand, Abhay & Lee, Dong-Yup, 2011. "A linear diversity constraint – Application to scheduling in microgrids," Energy, Elsevier, vol. 36(7), pages 4235-4243.
    3. 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.
    4. Khodr, H.M. & El Halabi, N. & García-Gracia, M., 2012. "Intelligent renewable microgrid scheduling controlled by a virtual power producer: A laboratory experience," Renewable Energy, Elsevier, vol. 48(C), pages 269-275.
    5. João Abel Peças Lopes & André Guimarães Madureira & Carlos Coelho Leal Monteiro Moreira, 2013. "A view of microgrids," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 2(1), pages 86-103, January.
    6. 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.
    7. Yu, Nan & Kang, Jin-Su & Chang, Chung-Chuan & Lee, Tai-Yong & Lee, Dong-Yup, 2016. "Robust economic optimization and environmental policy analysis for microgrid planning: An application to Taichung Industrial Park, Taiwan," Energy, Elsevier, vol. 113(C), pages 671-682.
    8. 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.
    9. Keon Baek & Woong Ko & Jinho Kim, 2019. "Optimal Scheduling of Distributed Energy Resources in Residential Building under the Demand Response Commitment Contract," Energies, MDPI, vol. 12(14), pages 1-19, July.
    10. Di Somma, M. & Graditi, G. & Heydarian-Forushani, E. & Shafie-khah, M. & Siano, P., 2018. "Stochastic optimal scheduling of distributed energy resources with renewables considering economic and environmental aspects," Renewable Energy, Elsevier, vol. 116(PA), pages 272-287.
    11. 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.
    12. 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.
    13. 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.
    14. Bracco, Stefano & Delfino, Federico & Pampararo, Fabio & Robba, Michela & Rossi, Mansueto, 2014. "A mathematical model for the optimal operation of the University of Genoa Smart Polygeneration Microgrid: Evaluation of technical, economic and environmental performance indicators," Energy, Elsevier, vol. 64(C), pages 912-922.
    15. 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.
    16. Di Somma, M. & Yan, B. & Bianco, N. & Graditi, G. & Luh, P.B. & Mongibello, L. & Naso, V., 2017. "Multi-objective design optimization of distributed energy systems through cost and exergy assessments," Applied Energy, Elsevier, vol. 204(C), pages 1299-1316.
    17. Fotouhi Ghazvini, M.A. & Morais, Hugo & Vale, Zita, 2012. "Coordination between mid-term maintenance outage decisions and short-term security-constrained scheduling in smart distribution systems," Applied Energy, Elsevier, vol. 96(C), pages 281-291.
    18. Obara, Shin’ya & Watanabe, Seizi & Rengarajan, Balaji, 2011. "Operation method study based on the energy balance of an independent microgrid using solar-powered water electrolyzer and an electric heat pump," Energy, Elsevier, vol. 36(8), pages 5200-5213.
    19. Akbari, Kaveh & Jolai, Fariborz & Ghaderi, Seyed Farid, 2016. "Optimal design of distributed energy system in a neighborhood under uncertainty," Energy, Elsevier, vol. 116(P1), pages 567-582.
    20. Zheng, Yingying & Jenkins, Bryan M. & Kornbluth, Kurt & Træholt, Chresten, 2018. "Optimization under uncertainty of a biomass-integrated renewable energy microgrid with energy storage," Renewable Energy, Elsevier, vol. 123(C), pages 204-217.

    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:103:y:2013:i:c:p:145-154. 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.