IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v330y2023ipas0306261922015707.html
   My bibliography  Save this article

Optimal design and operation of a multi-energy microgrid using mixed-integer nonlinear programming: Impact of carbon cap and trade system and taxing on equipment selections

Author

Listed:
  • Akulker, Handan
  • Aydin, Erdal

Abstract

Multi-energy microgrids comprise various energy sources such as solar, wind, hydro, biomass, oil, gas, and coal. Optimal configuration and scheduling of multi-energy microgrids enhance energy efficiency and reduce carbon dioxide emissions. In this work, a novel and detailed mixed-integer nonlinear programming (MINLP) model is proposed to compare the effects of carbon emission taxing and cap and trade system on the optimal equipment selection and scheduling under the regulatory effects of the Paris Agreement. The candidate equipment to be selected by the MINLP model includes two solar panel arrays, two wind turbine farms, two integrated gasification combined cycles, two combined heat and power units, two conventional generators, one biogenerator, one battery, two bio-gasifiers, and one power-to-gas system. The impact of carbon dioxide price, taken as 50, 75, and 100 $/ton, is investigated for both emission taxing and carbon dioxide cap and trade system. Equipment selections with the multi-period seasonal data and the carbon dioxide prices of 50 $/ton and 75 $/ton in stand-alone mode are the same for both cases without selecting renewable sourced generators. For the same conditions and with a carbon dioxide price of 100 $/ton, the MINLP model selects one wind turbine farm, one biogenerator, and one bio-gasifier. Moreover, the power-to-gas system is chosen in electricity grid-connected mode under emission taxing with the carbon dioxide price of 100 $/ton. For both emission taxing and cap and trade system, the trials using the seasonal data and the yearly average data with carbon dioxide price of 75 $/ton in stand-alone mode contributes to different equipment selections. Results show that carbon dioxide price may be a crucial parameter for equipment selection and must be taken into account in the design phase for optimal design and management. Finally, the MINLP solvers SCIP, BARON, and DICOPT, are compared in terms of CPU times and equipment selections.

Suggested Citation

  • Akulker, Handan & Aydin, Erdal, 2023. "Optimal design and operation of a multi-energy microgrid using mixed-integer nonlinear programming: Impact of carbon cap and trade system and taxing on equipment selections," Applied Energy, Elsevier, vol. 330(PA).
  • Handle: RePEc:eee:appene:v:330:y:2023:i:pa:s0306261922015707
    DOI: 10.1016/j.apenergy.2022.120313
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261922015707
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.apenergy.2022.120313?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. Getu Hailu & Alan S. Fung, 2019. "Optimum Tilt Angle and Orientation of Photovoltaic Thermal System for Application in Greater Toronto Area, Canada," Sustainability, MDPI, vol. 11(22), pages 1-21, November.
    2. Li, Zhengmao & Xu, Yan, 2018. "Optimal coordinated energy dispatch of a multi-energy microgrid in grid-connected and islanded modes," Applied Energy, Elsevier, vol. 210(C), pages 974-986.
    3. Ge, Yi & Han, Jitian & Ma, Qingzhao & Feng, Jiahui, 2022. "Optimal configuration and operation analysis of solar-assisted natural gas distributed energy system with energy storage," Energy, Elsevier, vol. 246(C).
    4. Wang, Yongli & Qi, Chengyuan & Dong, Huanran & Wang, Shuo & Wang, Xiaohai & Zeng, Ming & Zhu, Jinrong, 2020. "Optimal design of integrated energy system considering different battery operation strategy," Energy, Elsevier, vol. 212(C).
    5. Mansoor, Muhammad & Stadler, Michael & Zellinger, Michael & Lichtenegger, Klaus & Auer, Hans & Cosic, Armin, 2021. "Optimal planning of thermal energy systems in a microgrid with seasonal storage and piecewise affine cost functions," Energy, Elsevier, vol. 215(PA).
    6. Wallerand, Anna S. & Kermani, Maziar & Kantor, Ivan & Maréchal, François, 2018. "Optimal heat pump integration in industrial processes," Applied Energy, Elsevier, vol. 219(C), pages 68-92.
    7. Gorre, Jachin & Ortloff, Felix & van Leeuwen, Charlotte, 2019. "Production costs for synthetic methane in 2030 and 2050 of an optimized Power-to-Gas plant with intermediate hydrogen storage," Applied Energy, Elsevier, vol. 253(C), pages 1-1.
    8. Zhang, Zhihui & Jing, Rui & Lin, Jian & Wang, Xiaonan & van Dam, Koen H. & Wang, Meng & Meng, Chao & Xie, Shan & Zhao, Yingru, 2020. "Combining agent-based residential demand modeling with design optimization for integrated energy systems planning and operation," Applied Energy, Elsevier, vol. 263(C).
    9. Ikäheimo, Jussi & Weiss, Robert & Kiviluoma, Juha & Pursiheimo, Esa & Lindroos, Tomi J., 2022. "Impact of power-to-gas on the cost and design of the future low-carbon urban energy system," Applied Energy, Elsevier, vol. 305(C).
    10. Woong Ko & Jinho Kim, 2019. "Generation Expansion Planning Model for Integrated Energy System Considering Feasible Operation Region and Generation Efficiency of Combined Heat and Power," Energies, MDPI, vol. 12(2), pages 1-20, January.
    11. Elsido, Cristina & Bischi, Aldo & Silva, Paolo & Martelli, Emanuele, 2017. "Two-stage MINLP algorithm for the optimal synthesis and design of networks of CHP units," Energy, Elsevier, vol. 121(C), pages 403-426.
    12. Retkowski, Waldemar & Thöming, Jorg, 2014. "Thermoeconomic optimization of vertical ground-source heat pump systems through nonlinear integer programming," Applied Energy, Elsevier, vol. 114(C), pages 492-503.
    13. Feng, Zhong-kai & Niu, Wen-jing & Wang, Wen-chuan & Zhou, Jian-zhong & Cheng, Chun-tian, 2019. "A mixed integer linear programming model for unit commitment of thermal plants with peak shaving operation aspect in regional power grid lack of flexible hydropower energy," Energy, Elsevier, vol. 175(C), pages 618-629.
    14. Han, Dongho & Lee, Jay H., 2021. "Two-stage stochastic programming formulation for optimal design and operation of multi-microgrid system using data-based modeling of renewable energy sources," Applied Energy, Elsevier, vol. 291(C).
    15. 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).
    16. Perera, A.T.D. & Wickremasinghe, D.M.I.J. & Mahindarathna, D.V.S. & Attalage, R.A. & Perera, K.K.C.K. & Bartholameuz, E.M., 2012. "Sensitivity of internal combustion generator capacity in standalone hybrid energy systems," Energy, Elsevier, vol. 39(1), pages 403-411.
    17. Neri, Manfredi & Guelpa, Elisa & Verda, Vittorio, 2022. "Design and connection optimization of a district cooling network: Mixed integer programming and heuristic approach," Applied Energy, Elsevier, vol. 306(PA).
    18. Davis, William & Martín, Mariano, 2014. "Optimal year-round operation for methane production from CO2 and water using wind energy," Energy, Elsevier, vol. 69(C), pages 497-505.
    19. Chen, J.J. & Qi, B.X. & Rong, Z.K. & Peng, K. & Zhao, Y.L. & Zhang, X.H., 2021. "Multi-energy coordinated microgrid scheduling with integrated demand response for flexibility improvement," Energy, Elsevier, vol. 217(C).
    20. Kai Zhou & Mustafa R. Kılınç & Xi Chen & Nikolaos V. Sahinidis, 2018. "An efficient strategy for the activation of MIP relaxations in a multicore global MINLP solver," Journal of Global Optimization, Springer, vol. 70(3), pages 497-516, March.
    21. Bartolucci, L. & Cordiner, S. & Mulone, V. & Pasquale, S. & Sbarra, A., 2022. "Design and management strategies for low emission building-scale Multi Energy Systems," Energy, Elsevier, vol. 239(PB).
    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. Kumaran Kadirgama & Omar I. Awad & M. N. Mohammed & Hai Tao & Ali A. H. Karah Bash, 2023. "Sustainable Green Energy Management: Optimizing Scheduling of Multi-Energy Systems Considered Energy Cost and Emission Using Attractive Repulsive Shuffled Frog-Leaping," Sustainability, MDPI, vol. 15(14), pages 1-19, July.
    2. Masrur, Hasan & Khaloie, Hooman & Al-Awami, Ali T. & Ferik, Sami El & Senjyu, Tomonobu, 2024. "Cost-aware modeling and operation of interconnected multi-energy microgrids considering environmental and resilience impact," Applied Energy, Elsevier, vol. 356(C).
    3. Yi Zhang & Tian Lan & Wei Hu, 2023. "A Two-Stage Robust Optimization Microgrid Model Considering Carbon Trading and Demand Response," Sustainability, MDPI, vol. 15(19), pages 1-22, October.
    4. Wang, Yongli & Guo, Lu & Wang, Yanan & Zhang, Yunfei & Zhang, Siwen & Liu, Zeqiang & Xing, Juntai & Liu, Ximei, 2024. "Bi-level programming optimization method of rural integrated energy system based on coupling coordination degree of energy equipment," Energy, Elsevier, vol. 298(C).
    5. Massimiliano Caramia & Giuseppe Stecca, 2024. "Unregulated Cap-and-Trade Model for Sustainable Supply Chain Management," Mathematics, MDPI, vol. 12(3), pages 1-14, February.
    6. Shen, Haotian & Zhang, Hualiang & Xu, Yujie & Chen, Haisheng & Zhang, Zhilai & Li, Wenkai & Su, Xu & Xu, Yalin & Zhu, Yilin, 2024. "Two stage robust economic dispatching of microgrid considering uncertainty of wind, solar and electricity load along with carbon emission predicted by neural network model," Energy, Elsevier, vol. 300(C).
    7. Long, Yong & Liu, Xia, 2024. "Optimal green investment strategy for grid-connected microgrid considering the impact of renewable energy source endowment and incentive policy," Energy, Elsevier, vol. 295(C).

    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. Ikäheimo, Jussi & Weiss, Robert & Kiviluoma, Juha & Pursiheimo, Esa & Lindroos, Tomi J., 2022. "Impact of power-to-gas on the cost and design of the future low-carbon urban energy system," Applied Energy, Elsevier, vol. 305(C).
    2. Mansour-Saatloo, Amin & Pezhmani, Yasin & Mirzaei, Mohammad Amin & Mohammadi-Ivatloo, Behnam & Zare, Kazem & Marzband, Mousa & Anvari-Moghaddam, Amjad, 2021. "Robust decentralized optimization of Multi-Microgrids integrated with Power-to-X technologies," Applied Energy, Elsevier, vol. 304(C).
    3. Saletti, Costanza & Morini, Mirko & Gambarotta, Agostino, 2022. "Smart management of integrated energy systems through co-optimization with long and short horizons," Energy, Elsevier, vol. 250(C).
    4. Li, Ke & Yang, Fan & Wang, Lupan & Yan, Yi & Wang, Haiyang & Zhang, Chenghui, 2022. "A scenario-based two-stage stochastic optimization approach for multi-energy microgrids," Applied Energy, Elsevier, vol. 322(C).
    5. Shahbazbegian, Vahid & Shafie-khah, Miadreza & Laaksonen, Hannu & Strbac, Goran & Ameli, Hossein, 2023. "Resilience-oriented operation of microgrids in the presence of power-to-hydrogen systems," Applied Energy, Elsevier, vol. 348(C).
    6. Ju, Liwei & Liu, Li & Han, Yingzhu & Yang, Shenbo & Li, Gen & Lu, Xiaolong & Liu, Yi & Qiao, Huiting, 2023. "Robust Multi-objective optimal dispatching model for a novel island micro energy grid incorporating biomass waste energy conversion system, desalination and power-to-hydrogen devices," Applied Energy, Elsevier, vol. 343(C).
    7. Mehar Ullah & Daniel Gutierrez-Rojas & Eero Inkeri & Tero Tynjälä & Pedro H. J. Nardelli, 2022. "Operation of Power-to-X-Related Processes Based on Advanced Data-Driven Methods: A Comprehensive Review," Energies, MDPI, vol. 15(21), pages 1-17, October.
    8. Fambri, Gabriele & Diaz-Londono, Cesar & Mazza, Andrea & Badami, Marco & Sihvonen, Teemu & Weiss, Robert, 2022. "Techno-economic analysis of Power-to-Gas plants in a gas and electricity distribution network system with high renewable energy penetration," Applied Energy, Elsevier, vol. 312(C).
    9. Wang, Jiangjiang & Huo, Shuojie & Yan, Rujing & Cui, Zhiheng, 2022. "Leveraging heat accumulation of district heating network to improve performances of integrated energy system under source-load uncertainties," Energy, Elsevier, vol. 252(C).
    10. Wissocq, Thibaut & Ghazouani, Sami & Le Bourdiec, Solène, 2019. "A methodology for designing thermodynamic energy conversion systems in industrial mass/heat integration problems based on MILP models," Energy, Elsevier, vol. 185(C), pages 121-135.
    11. Serrano-Arévalo, Tania Itzel & López-Flores, Francisco Javier & Raya-Tapia, Alma Yunuen & Ramírez-Márquez, César & Ponce-Ortega, José María, 2023. "Optimal expansion for a clean power sector transition in Mexico based on predicted electricity demand using deep learning scheme," Applied Energy, Elsevier, vol. 348(C).
    12. Kim, Sunwoo & Choi, Yechan & Park, Joungho & Adams, Derrick & Heo, Seongmin & Lee, Jay H., 2024. "Multi-period, multi-timescale stochastic optimization model for simultaneous capacity investment and energy management decisions for hybrid Micro-Grids with green hydrogen production under uncertainty," Renewable and Sustainable Energy Reviews, Elsevier, vol. 190(PA).
    13. Emrani-Rahaghi, Pouria & Hashemi-Dezaki, Hamed & Ketabi, Abbas, 2023. "Efficient voltage control of low voltage distribution networks using integrated optimized energy management of networked residential multi-energy microgrids," Applied Energy, Elsevier, vol. 349(C).
    14. Xinxin Liu & Nan Li & Feng Liu & Hailin Mu & Longxi Li & Xiaoyu Liu, 2021. "Optimal Design on Fossil-to-Renewable Energy Transition of Regional Integrated Energy Systems under CO 2 Emission Abatement Control: A Case Study in Dalian, China," Energies, MDPI, vol. 14(10), pages 1-25, May.
    15. Wang, Dongxiao & Qiu, Jing & Reedman, Luke & Meng, Ke & Lai, Loi Lei, 2018. "Two-stage energy management for networked microgrids with high renewable penetration," Applied Energy, Elsevier, vol. 226(C), pages 39-48.
    16. Kwag, Kyuhyeong & Shin, Hansol & Oh, Hyobin & Yun, Sangmin & Kim, Tae Hyun & Hwang, Pyeong-Ik & Kim, Wook, 2023. "Bilevel programming approach for the quantitative analysis of renewable portfolio standards considering the electricity market," Energy, Elsevier, vol. 263(PD).
    17. Guelpa, Elisa & Bischi, Aldo & Verda, Vittorio & Chertkov, Michael & Lund, Henrik, 2019. "Towards future infrastructures for sustainable multi-energy systems: A review," Energy, Elsevier, vol. 184(C), pages 2-21.
    18. Katla, Daria & Bartela, Łukasz & Skorek-Osikowska, Anna, 2020. "Evaluation of electricity generation subsystem of power-to-gas-to-power unit using gas expander and heat recovery steam generator," Energy, Elsevier, vol. 212(C).
    19. Shunyong Yin & Jianjun Xia & Yi Jiang, 2020. "Characteristics Analysis of the Heat-to-Power Ratio from the Supply and Demand Sides of Cities in Northern China," Energies, MDPI, vol. 13(1), pages 1-14, January.
    20. Opgrand, Jeff & Preckel, Paul V. & Sparrow, F.T. & Thomas, Gregory & Loucks, Daniel P., 2020. "Restoring the natural flow regime of a large hydroelectric complex: Costs and considerations," Energy, Elsevier, vol. 190(C).

    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:330:y:2023:i:pa:s0306261922015707. 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.