Optimal planning of microgrid power and operating reserve capacity

Mike Quashie, Chris Marnay, François Bouffard and Géza Joós

Applied Energy, 2018, vol. 210, issue C, 1229-1236

Abstract: This paper proposes a bi–level formulation for a coupled microgrid power and reserve capacity planning problem, cast within the jurisdiction of a distribution system operator(DSO). The upper level problem of the proposed bi–level model represents a microgrid planner whose goal is to minimize its planning and operational cost, while the lower level problem represents a DSO whose primary duty is to ensure reliable power supply. The microgrid planner, pursues its interest by co–optimizing the design configuration and power output of individual distributed energy resources (DERs), while the DSO maximizes the capacity of flexible reserve resources. The proposed model is recast as a mathematical program with equilibrium constraints (MPEC) wherein the decision variables of the two problems are independently controlled. Application of the proposed approach to the energy infrastructure of a Canadian utility network is discussed. Results obtained through its application are compared to an alternative multi–objective planning model and the improved benefits are assigned to the corresponding stakeholders.

Keywords: Bilevel optimization; Distributed energy resources; Economic analysis; Energy management; Microgrid planning (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (42)

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DOI: 10.1016/j.apenergy.2017.08.015

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