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Stochastic programming and market equilibrium analysis of microgrids energy management systems

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  • Hu, Ming-Che
  • Lu, Su-Ying
  • Chen, Yen-Haw

Abstract

Microgrids facilitate optimum utilization of distributed renewable energy, provides better local energy supply, and reduces transmission loss and greenhouse gas emission. Because the uncertainty in energy demand affects the energy demand and supply system, the aim of this research is to develop a stochastic optimization and its market equilibrium for microgrids in the electricity market. Therefore, a two-stage stochastic programming model for microgrids and the market competition model are derived in this paper. In the stochastic model, energy demand and supply uncertainties are considered. Furthermore, a case study of the stochastic model is conducted to simulate the uncertainties on the INER microgrids in Taiwanese market. The optimal investment of the generators and batteries installation and operating strategies are determined under energy demand and supply uncertainties for the INER microgrids. The results show optimal investment and operating strategies for the current INER microgrids are also determined by the proposed two-stage stochastic model in the market. In addition, trade-off between the battery capacity and microgrids performance is investigated. Battery usage and power trading between the microgrids and main grid systems are the functions of battery capacity.

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  • 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.
    • Handle: RePEc:eee:energy:v:113:y:2016:i:c:p:662-670
    DOI: 10.1016/j.energy.2016.07.061
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    20. Shanmugarajah Vinothine & Lidula N. Widanagama Arachchige & Athula D. Rajapakse & Roshani Kaluthanthrige, 2022. "Microgrid Energy Management and Methods for Managing Forecast Uncertainties," Energies, MDPI, vol. 15(22), pages 1-22, November.
    21. Ju, Liwei & Tan, Qinliang & Lin, Hongyu & Mei, Shufang & Li, Nan & Lu, Yan & Wang, Yao, 2020. "A two-stage optimal coordinated scheduling strategy for micro energy grid integrating intermittent renewable energy sources considering multi-energy flexible conversion," Energy, Elsevier, vol. 196(C).
    22. Tabar, Vahid Sohrabi & Jirdehi, Mehdi Ahmadi & Hemmati, Reza, 2017. "Energy management in microgrid based on the multi objective stochastic programming incorporating portable renewable energy resource as demand response option," Energy, Elsevier, vol. 118(C), pages 827-839.
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