IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v252y2019ic46.html
   My bibliography  Save this article

Optimisation framework for the design and operation of open-market urban and remote community microgrids

Author

Listed:
  • Meena, Nand K.
  • Yang, Jin
  • Zacharis, Evan

Abstract

In this article, a new business model considering multiple stakeholders is proposed to develop a framework for third-party investment and future flexible retail electricity market in community microgrids. The proposed two-stage optimisation platform generates opportunities for multiple stakeholders to invest in the design of community microgrids, comprising multiple and different distributed energy resources such as renewable generation units, battery energy storage systems, and micro diesel engines, to minimize daily operational costs of the system. To proliferate the prosumers in retail energy markets as per the Office of Gas and Electricity Markets, United Kingdom, a peer-to-peer energy trading and energy management scheme is also proposed. The optimal sizing of urban and remote community microgrids are determined in stage-1, followed by their optimal operations to minimise the daily operating cost of the community system in stage-2. An improved version of the genetic algorithm is employed to optimise decision variables in both the stages. Different cases are investigated which show the tremendous potential of revenue generation for all stakeholders while effectively optimizing techno-economic operations of microgrids.

Suggested Citation

  • Meena, Nand K. & Yang, Jin & Zacharis, Evan, 2019. "Optimisation framework for the design and operation of open-market urban and remote community microgrids," Applied Energy, Elsevier, vol. 252(C), pages 1-1.
  • Handle: RePEc:eee:appene:v:252:y:2019:i:c:46
    DOI: 10.1016/j.apenergy.2019.113399
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261919310736
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.apenergy.2019.113399?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. Sameti, Mohammad & Haghighat, Fariborz, 2018. "Integration of distributed energy storage into net-zero energy district systems: Optimum design and operation," Energy, Elsevier, vol. 153(C), pages 575-591.
    2. Stadler, Michael & Cardoso, Gonçalo & Mashayekh, Salman & Forget, Thibault & DeForest, Nicholas & Agarwal, Ankit & Schönbein, Anna, 2016. "Value streams in microgrids: A literature review," Applied Energy, Elsevier, vol. 162(C), pages 980-989.
    3. Motalleb, Mahdi & Ghorbani, Reza, 2017. "Non-cooperative game-theoretic model of demand response aggregator competition for selling stored energy in storage devices," Applied Energy, Elsevier, vol. 202(C), pages 581-596.
    4. Ravindra, Kumudhini & Iyer, Parameshwar P., 2014. "Decentralized demand–supply matching using community microgrids and consumer demand response: A scenario analysis," Energy, Elsevier, vol. 76(C), pages 32-41.
    5. Gerard Reid & Gerard Wynn, 2015. "The Future of Solar Power in the United Kingdom," Energies, MDPI, vol. 8(8), pages 1-15, July.
    6. Huang, Zishuo & Yu, Hang & Peng, Zhenwei & Feng, Yifu, 2017. "Planning community energy system in the industry 4.0 era: Achievements, challenges and a potential solution," Renewable and Sustainable Energy Reviews, Elsevier, vol. 78(C), pages 710-721.
    7. Haddadian, Hossein & Noroozian, Reza, 2017. "Multi-microgrids approach for design and operation of future distribution networks based on novel technical indices," Applied Energy, Elsevier, vol. 185(P1), pages 650-663.
    8. Liu, Guodong & Jiang, Tao & Ollis, Thomas B. & Zhang, Xiaohu & Tomsovic, Kevin, 2019. "Distributed energy management for community microgrids considering network operational constraints and building thermal dynamics," Applied Energy, Elsevier, vol. 239(C), pages 83-95.
    9. Alavi, Farid & Park Lee, Esther & van de Wouw, Nathan & De Schutter, Bart & Lukszo, Zofia, 2017. "Fuel cell cars in a microgrid for synergies between hydrogen and electricity networks," Applied Energy, Elsevier, vol. 192(C), pages 296-304.
    10. Hong, Ying-Yi & Chang, Wen-Chun & Chang, Yung-Ruei & Lee, Yih-Der & Ouyang, Der-Chuan, 2017. "Optimal sizing of renewable energy generations in a community microgrid using Markov model," Energy, Elsevier, vol. 135(C), pages 68-74.
    11. Nguyen, Su & Peng, Wei & Sokolowski, Peter & Alahakoon, Damminda & Yu, Xinghuo, 2018. "Optimizing rooftop photovoltaic distributed generation with battery storage for peer-to-peer energy trading," Applied Energy, Elsevier, vol. 228(C), pages 2567-2580.
    12. Kirubi, Charles & Jacobson, Arne & Kammen, Daniel M. & Mills, Andrew, 2009. "Community-Based Electric Micro-Grids Can Contribute to Rural Development: Evidence from Kenya," World Development, Elsevier, vol. 37(7), pages 1208-1221, July.
    13. Zhang, Chenghua & Wu, Jianzhong & Zhou, Yue & Cheng, Meng & Long, Chao, 2018. "Peer-to-Peer energy trading in a Microgrid," Applied Energy, Elsevier, vol. 220(C), pages 1-12.
    14. Moutis, Panayiotis & Skarvelis-Kazakos, Spyros & Brucoli, Maria, 2016. "Decision tree aided planning and energy balancing of planned community microgrids," Applied Energy, Elsevier, vol. 161(C), pages 197-205.
    15. Yan, Jie & Menghwar, Mohan & Asghar, Ehtisham & Kumar Panjwani, Manoj & Liu, Yongqian, 2019. "Real-time energy management for a smart-community microgrid with battery swapping and renewables," Applied Energy, Elsevier, vol. 238(C), pages 180-194.
    16. Sameti, Mohammad & Haghighat, Fariborz, 2019. "Optimization of 4th generation distributed district heating system: Design and planning of combined heat and power," Renewable Energy, Elsevier, vol. 130(C), pages 371-387.
    17. Mengelkamp, Esther & Gärttner, Johannes & Rock, Kerstin & Kessler, Scott & Orsini, Lawrence & Weinhardt, Christof, 2018. "Designing microgrid energy markets," Applied Energy, Elsevier, vol. 210(C), pages 870-880.
    18. Fathima, A. Hina & Palanisamy, K., 2015. "Optimization in microgrids with hybrid energy systems – A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 45(C), pages 431-446.
    19. Xu, Zhirong & Yang, Ping & Zheng, Chengli & Zhang, Yujia & Peng, Jiajun & Zeng, Zhiji, 2018. "Analysis on the organization and Development of multi-microgrids," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P2), pages 2204-2216.
    20. Zhou, Yue & Wu, Jianzhong & Long, Chao, 2018. "Evaluation of peer-to-peer energy sharing mechanisms based on a multiagent simulation framework," Applied Energy, Elsevier, vol. 222(C), pages 993-1022.
    21. Long, Chao & Wu, Jianzhong & Zhou, Yue & Jenkins, Nick, 2018. "Peer-to-peer energy sharing through a two-stage aggregated battery control in a community Microgrid," Applied Energy, Elsevier, vol. 226(C), pages 261-276.
    22. Noor, Sana & Yang, Wentao & Guo, Miao & van Dam, Koen H. & Wang, Xiaonan, 2018. "Energy Demand Side Management within micro-grid networks enhanced by blockchain," Applied Energy, Elsevier, vol. 228(C), pages 1385-1398.
    23. Wang, Xiaoxue & Wang, Chengshan & Xu, Tao & Guo, Lingxu & Li, Peng & Yu, Li & Meng, He, 2018. "Optimal voltage regulation for distribution networks with multi-microgrids," Applied Energy, Elsevier, vol. 210(C), pages 1027-1036.
    24. Veldhuis, Anton Johannes & Leach, Matthew & Yang, Aidong, 2018. "The impact of increased decentralised generation on the reliability of an existing electricity network," Applied Energy, Elsevier, vol. 215(C), pages 479-502.
    25. Esmaili, Masoud & Firozjaee, Esmail Chaktan & Shayanfar, Heidar Ali, 2014. "Optimal placement of distributed generations considering voltage stability and power losses with observing voltage-related constraints," Applied Energy, Elsevier, vol. 113(C), pages 1252-1260.
    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. Azimian, Mahdi & Amir, Vahid & Javadi, Saeid, 2020. "Economic and Environmental Policy Analysis for Emission-Neutral Multi-Carrier Microgrid Deployment," Applied Energy, Elsevier, vol. 277(C).
    2. Mokhtar Aly & Emad A. Mohamed & Abdullah M. Noman & Emad M. Ahmed & Fayez F. M. El-Sousy & Masayuki Watanabe, 2023. "Optimized Non-Integer Load Frequency Control Scheme for Interconnected Microgrids in Remote Areas with High Renewable Energy and Electric Vehicle Penetrations," Mathematics, MDPI, vol. 11(9), pages 1-31, April.
    3. Karami, Mahdi & Madlener, Reinhard, 2022. "Business models for peer-to-peer energy trading in Germany based on households’ beliefs and preferences," Applied Energy, Elsevier, vol. 306(PB).
    4. Mengelkamp, Esther & Schlund, David & Weinhardt, Christof, 2019. "Development and real-world application of a taxonomy for business models in local energy markets," Applied Energy, Elsevier, vol. 256(C).
    5. Sulman Shahzad & Elżbieta Jasińska, 2024. "Renewable Revolution: A Review of Strategic Flexibility in Future Power Systems," Sustainability, MDPI, vol. 16(13), pages 1-24, June.
    6. Azim, M. Imran & Tushar, Wayes & Saha, Tapan K. & Yuen, Chau & Smith, David, 2022. "Peer-to-peer kilowatt and negawatt trading: A review of challenges and recent advances in distribution networks," Renewable and Sustainable Energy Reviews, Elsevier, vol. 169(C).
    7. Schwidtal, J.M. & Piccini, P. & Troncia, M. & Chitchyan, R. & Montakhabi, M. & Francis, C. & Gorbatcheva, A. & Capper, T. & Mustafa, M.A. & Andoni, M. & Robu, V. & Bahloul, M. & Scott, I.J. & Mbavarir, 2023. "Emerging business models in local energy markets: A systematic review of peer-to-peer, community self-consumption, and transactive energy models," Renewable and Sustainable Energy Reviews, Elsevier, vol. 179(C).
    8. Simon Wright & Mark Frost & Alfred Wong & Kevin A. Parton, 2022. "Australian Renewable-Energy Microgrids: A Humble Past, a Turbulent Present, a Propitious Future," Sustainability, MDPI, vol. 14(5), pages 1-19, February.
    9. Rodrigues, Stefane Dias & Garcia, Vinicius Jacques, 2023. "Transactive energy in microgrid communities: A systematic review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 171(C).
    10. Singh, Pushpendra & Meena, Nand K. & Yang, Jin & Vega-Fuentes, Eduardo & Bishnoi, Shree Krishna, 2020. "Multi-criteria decision making monarch butterfly optimization for optimal distributed energy resources mix in distribution networks," Applied Energy, Elsevier, vol. 278(C).
    11. Capper, Timothy & Gorbatcheva, Anna & Mustafa, Mustafa A. & Bahloul, Mohamed & Schwidtal, Jan Marc & Chitchyan, Ruzanna & Andoni, Merlinda & Robu, Valentin & Montakhabi, Mehdi & Scott, Ian J. & Franci, 2022. "Peer-to-peer, community self-consumption, and transactive energy: A systematic literature review of local energy market models," Renewable and Sustainable Energy Reviews, Elsevier, vol. 162(C).
    12. Shama Naz Islam, 2024. "A Review of Peer-to-Peer Energy Trading Markets: Enabling Models and Technologies," Energies, MDPI, vol. 17(7), pages 1-18, April.

    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. Capper, Timothy & Gorbatcheva, Anna & Mustafa, Mustafa A. & Bahloul, Mohamed & Schwidtal, Jan Marc & Chitchyan, Ruzanna & Andoni, Merlinda & Robu, Valentin & Montakhabi, Mehdi & Scott, Ian J. & Franci, 2022. "Peer-to-peer, community self-consumption, and transactive energy: A systematic literature review of local energy market models," Renewable and Sustainable Energy Reviews, Elsevier, vol. 162(C).
    2. Schwidtal, J.M. & Piccini, P. & Troncia, M. & Chitchyan, R. & Montakhabi, M. & Francis, C. & Gorbatcheva, A. & Capper, T. & Mustafa, M.A. & Andoni, M. & Robu, V. & Bahloul, M. & Scott, I.J. & Mbavarir, 2023. "Emerging business models in local energy markets: A systematic review of peer-to-peer, community self-consumption, and transactive energy models," Renewable and Sustainable Energy Reviews, Elsevier, vol. 179(C).
    3. Rodrigues, Daniel L. & Ye, Xianming & Xia, Xiaohua & Zhu, Bing, 2020. "Battery energy storage sizing optimisation for different ownership structures in a peer-to-peer energy sharing community," Applied Energy, Elsevier, vol. 262(C).
    4. Lüth, Alexandra & Zepter, Jan Martin & Crespo del Granado, Pedro & Egging, Ruud, 2018. "Local electricity market designs for peer-to-peer trading: The role of battery flexibility," Applied Energy, Elsevier, vol. 229(C), pages 1233-1243.
    5. Azim, M. Imran & Tushar, Wayes & Saha, Tapan K. & Yuen, Chau & Smith, David, 2022. "Peer-to-peer kilowatt and negawatt trading: A review of challenges and recent advances in distribution networks," Renewable and Sustainable Energy Reviews, Elsevier, vol. 169(C).
    6. Zheng, Boshen & Wei, Wei & Chen, Yue & Wu, Qiuwei & Mei, Shengwei, 2022. "A peer-to-peer energy trading market embedded with residential shared energy storage units," Applied Energy, Elsevier, vol. 308(C).
    7. Lyu, Cheng & Jia, Youwei & Xu, Zhao, 2021. "Fully decentralized peer-to-peer energy sharing framework for smart buildings with local battery system and aggregated electric vehicles," Applied Energy, Elsevier, vol. 299(C).
    8. Miguel Carpintero-Rentería & David Santos-Martín & Josep M. Guerrero, 2019. "Microgrids Literature Review through a Layers Structure," Energies, MDPI, vol. 12(22), pages 1-22, November.
    9. Wang, Zibo & Yu, Xiaodan & Mu, Yunfei & Jia, Hongjie, 2020. "A distributed Peer-to-Peer energy transaction method for diversified prosumers in Urban Community Microgrid System," Applied Energy, Elsevier, vol. 260(C).
    10. Hu, Qian & Zhu, Ziqing & Bu, Siqi & Wing Chan, Ka & Li, Fangxing, 2021. "A multi-market nanogrid P2P energy and ancillary service trading paradigm: Mechanisms and implementations," Applied Energy, Elsevier, vol. 293(C).
    11. Tushar, Wayes & Saha, Tapan Kumar & Yuen, Chau & Azim, M. Imran & Morstyn, Thomas & Poor, H. Vincent & Niyato, Dustin & Bean, Richard, 2020. "A coalition formation game framework for peer-to-peer energy trading," Applied Energy, Elsevier, vol. 261(C).
    12. Soto, Esteban A. & Bosman, Lisa B. & Wollega, Ebisa & Leon-Salas, Walter D., 2021. "Peer-to-peer energy trading: A review of the literature," Applied Energy, Elsevier, vol. 283(C).
    13. Esmat, Ayman & de Vos, Martijn & Ghiassi-Farrokhfal, Yashar & Palensky, Peter & Epema, Dick, 2021. "A novel decentralized platform for peer-to-peer energy trading market with blockchain technology," Applied Energy, Elsevier, vol. 282(PA).
    14. Ge, Shaoyun & Li, Jifeng & He, Xingtang & Liu, Hong, 2021. "Joint energy market design for local integrated energy system service procurement considering demand flexibility," Applied Energy, Elsevier, vol. 297(C).
    15. Siripha Junlakarn & Phimsupha Kokchang & Kulyos Audomvongseree, 2022. "Drivers and Challenges of Peer-to-Peer Energy Trading Development in Thailand," Energies, MDPI, vol. 15(3), pages 1-25, February.
    16. El-Baz, Wessam & Tzscheutschler, Peter & Wagner, Ulrich, 2019. "Integration of energy markets in microgrids: A double-sided auction with device-oriented bidding strategies," Applied Energy, Elsevier, vol. 241(C), pages 625-639.
    17. Xu, Shuang & Zhao, Yong & Li, Yuanzheng & Zhou, Yue, 2021. "An iterative uniform-price auction mechanism for peer-to-peer energy trading in a community microgrid," Applied Energy, Elsevier, vol. 298(C).
    18. Zhou, Yue & Wu, Jianzhong & Song, Guanyu & Long, Chao, 2020. "Framework design and optimal bidding strategy for ancillary service provision from a peer-to-peer energy trading community," Applied Energy, Elsevier, vol. 278(C).
    19. Meritxell Domènech Monfort & César De Jesús & Natapon Wanapinit & Niklas Hartmann, 2022. "A Review of Peer-to-Peer Energy Trading with Standard Terminology Proposal and a Techno-Economic Characterisation Matrix," Energies, MDPI, vol. 15(23), pages 1-29, November.
    20. Arnob Das & Susmita Datta Peu & Md. Abdul Mannan Akanda & Abu Reza Md. Towfiqul Islam, 2023. "Peer-to-Peer Energy Trading Pricing Mechanisms: Towards a Comprehensive Analysis of Energy and Network Service Pricing (NSP) Mechanisms to Get Sustainable Enviro-Economical Energy Sector," Energies, MDPI, vol. 16(5), pages 1-27, February.

    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:252:y:2019:i:c:46. 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.