The role of co-optimization in trading off cost and frequency regulation service for industrial microgrids

Chenghao Lyu, Weiquan Wang, Junyue Wang, Yilin Bai, Zhengxiang Song, Wei Wang and Jinhao Meng

Applied Energy, 2024, vol. 375, issue C, No S0306261924015149

Abstract: The growing adoption of renewable energy-based industrial microgrids challenges grid frequency stability. It highlights the need for microgrids to participate in Frequency Regulation (FR) service while preserving their economic benefits. Current policies, which prioritize FR participation based on revenue incentives, result in a suboptimal balance between economic and FR objectives. To address this issue, this study introduces a co-optimization approach and underscores its role in trade-off exploration. An actual case study validates the approach and reveals the conflict between these two objectives. The results of co-optimization reveal the impacts of Renewable Energy Sources (RES) and Energy Storage Systems (ESS) through Pareto front analysis. While RES can significantly reduce the power cost of EIIMs by up to 96.1%, it has a negative impact on frequency stability. This negative impact, measured through an energy-based method, results in deviations from the grid's preferred frequency regulation power by up to 154.0%. Meanwhile, the positive impact of ESS on improving the trade-off situation is demonstrated through the “Least Misery” principle. Compared to having no ESS, incorporating a 100 kW·h ESS achieves win-win outcomes, enhancing minimal dissatisfaction by 10.16%. Furthermore, a comparative analysis with the current policy approach showcases the risks of obtaining suboptimal solutions under existing policies. Some radical policy settings result in a dissatisfaction rate larger than 100%. This study elucidates the role of co-optimization by advancing comprehension of the impacts of RES and ESS while providing a method to achieve the appropriate trade-off.

Keywords: Co-optimization; Frequency regulation; Renewable energy source; Energy storage system; Pareto front (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0306261924015149
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:appene:v:375:y:2024:i:c:s0306261924015149

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/bibliographic
http://www.elsevier. ... 405891/bibliographic

DOI: 10.1016/j.apenergy.2024.124131

Access Statistics for this article

Applied Energy is currently edited by J. Yan

More articles in Applied Energy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().