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Decentralized Operations of Industrial Complex Microgrids Considering Corporate Power Purchase Agreements for Renewable Energy 100% Initiatives in South Korea

Author

Listed:
  • Jinyeong Lee

    (Electricity Policy Research Center, Korea Electrotechnology Research Institute (KERI), Uiwang 16029, Republic of Korea)

  • Kyungcheol Shin

    (School of Electrical Engineering, Anam Campus, Korea University, 145 Anam-ro, Seongbuk-gu, Seoul 02841, Republic of Korea)

  • Young-Min Wi

    (Department of Electrical Engineering, Sangmyung University, Seoul 03016, Republic of Korea)

Abstract

With the rise of environmental policies and advanced technologies, power systems are transitioning from centralized to decentralized systems, incorporating more distributed energy resources (DERs). This shift has increased interest in the operational functions of microgrids (MGs). The “Renewable Energy 100%” (RE100) campaign is pushing companies to adopt renewable energy. In South Korea, industrial complex microgrids (ICMGs) aim to achieve RE100 through corporate power purchase agreements (PPAs) with renewable energy providers. ICMGs need to operate in both grid-connected and islanded modes, facing challenges in power transactions due to different operating agents. This study proposes a decentralized optimal power flow (OPF) method using the separable augmented Lagrangian relaxation (SALR) algorithm to solve these power transaction problems without disclosing internal information. The proposed method decomposes the centralized OPF problem into subproblems for each ICMG and solves them in a distributed manner, sharing only transaction prices and amounts. Numerical results from the case study validate the effectiveness of the proposed method.

Suggested Citation

  • Jinyeong Lee & Kyungcheol Shin & Young-Min Wi, 2024. "Decentralized Operations of Industrial Complex Microgrids Considering Corporate Power Purchase Agreements for Renewable Energy 100% Initiatives in South Korea," Sustainability, MDPI, vol. 16(13), pages 1-23, June.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:13:p:5440-:d:1422929
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    References listed on IDEAS

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