Multi Objective Operational Optimization
Multi Objective Operational Optimization
ABSTRACT
With energy saving issues and growing environment protection awareness, interest in distributed generation has been
intensifying. Distributed Energy Systems (DESs) are being widely investigated, since they are expected to be largely used to
increase the efficiency of energy supply and to address environmental problems. In this paper, a multi-objective optimization
problem is formulated to obtain the optimal operational strategies of a DES, to reduce both the energy cost and the environmental
impact. The DES includes different energy conversion devices and thermal energy storages to satisfy time-varying user demands.
The Pareto front, including the best possible trade-offs between the economic and the environmental objectives, is obtained by
minimizing a weighted sum of the total energy costs and CO2 emissions. The operators of DESs can choose the operational
strategy from the Pareto front based on the economic and environmental priorities. The model is implemented for a DES for a
large-scale utility customer. Results show that the optimized operation of the DES reduces energy costs and CO2 emissions, as
compared with conventional energy supply systems. In addition, a sensitivity analysis is carried out to analyze the effects on
energy costs and environmental impact of variations in the configuration of the DES supply side.
Keywords: Distributed Energy System, Total energy cost and Cooling Heat and Power (CCHP) system, solar thermal plant,
CO2 emissions, Multi-objective operational optimization. reversible heat pump and thermal energy storages, which
provide electricity, heat and cooling to end-users. The
1. INTRODUCTION economic objective is formulated as the total energy cost to be
minimized, and the environmental objective is formulated as
A Distributed Energy System (DES) may consist of small- the total CO2 emissions to be minimized. The Pareto front
scale heat and power generation technologies including also involving the best possible trade-offs between the economic
renewable ones, and storage units, providing electric and and environmental objectives is attained by minimizing a
thermal energy to end-users. In recent years, DESs have been weighted sum of the total energy cost and CO2 emissions, by
recognized as an effective alternative to conventional energy using branch-and-cut. The operators of DESs can choose the
supply systems [1, 2], since they allow to increase the operational strategy from the Pareto front based on the
efficiency of energy supply as well as to address economic and environmental priorities.
environmental issues. However, most of the studies in the As an illustrative example, a large-scale utility customer (a
literature have been focused on the optimized operation of large hotel located in Italy) is considered as the end-user.
specific energy systems, such as Combined Heat and Power Results show that the optimized operation of the DES allows
(CHP) systems, from the economic point of view [3-5]. to reduce the energy costs and the environmental impact, as
The economic analysis alone is not sufficient due to compared with conventional energy supply systems. In
growing environmental concerns, like the global warming and addition, a sensitivity analysis is carried out, to analyze the
the depletion of fossil fuels. Operation problems of DESs, effect on energy costs and environmental impact of variations
including different energy systems, become more challenging in the configuration of the DES supply side.
when the environmental aspects are also taken into account,
since the economic and the environmental objectives may be 2. PROBLEM FORMULATION
contradictory [6]. In addition, the energy devices involved
convert and store different energy carriers (electricity, natural The DES under consideration consists of energy
gas, solar energy, hot and/or cold fluids) with different energy conversion devices and thermal energy storages, providing
efficiencies and environmental impacts. electricity, heat and cooling to end-users. Figure 1 shows the
In this paper, a multi-objective linear programming scheme of the DES with the possible routes of energy carriers
(MOLP) problem is formulated to obtain the optimal from various energy resources via primary and secondary
operational strategies of a DES to reduce the energy costs and energy devices, and thermal storages to meet given time-
the environmental impact, while satisfying time-varying user varying user demands. Modeling of energy devices and
demands, with given prices of energy sources. The DES thermal storages is presented in Subsection 2.1, energy
involves different energy conversion devices: Combined balances are described in Subsection 2.2.
ASME-ATI-UIT 2015 Conference on Thermal Energy Systems: Production, Storage, Utilization and the Environment
17 – 20 May, 2015, Napoli, Italy
electricity fuelled by natural gas. Thermal energy is recovered
boiler to directly provide the heat rate, H DHW
(t ) , is:
di
from exhaust gas and used to provide heating by the heat
recovery boilers and cooling by the absorption chiller. G boil
DHW
(t ) H di
DHW
(t ) / boilLHVgas , (5)
Furthermore, heating and cooling can be also directly
generated by a supplementary burning of natural gas in the where ηboil is the combustion efficiency of the boiler.
boilers and absorption chiller, respectively [7]. Decision Therefore, the total generation of the heat recovery boiler
variables for the CCHP system are the electricity generation
for the domestic hot water demand, H CCHP
DHW
(t ) , is the sum of
level in the internal combustion engine, the fraction of
exhaust gas for domestic hot water, space heating and cooling the heat rate obtained by exhaust gas, H DHW
(t ) , and the heat
ex
demands, and heating and cooling directly provided by the rate directly provided by supplementary burning of natural
supplementary burning of natural gas in the boilers and gas, H di
DHW
(t ) :
absorption chiller, respectively.
Constraints considered for the CCHP system are presented H CCHP
DHW
(t ) H ex
DHW
(t ) H di
DHW
(t ) . (6)
below. The volumetric flow rate of natural gas, G ICE (t ) ,
Modeling of heating for the space heating demand and of
required by the engine to provide electricity, E (t ) , is
CCHP cooling for the space cooling demand by the CCHP system is
given by: similar to that described above.
G ICE (t ) ECCHP (t ) / e LHVgas ,
The sum of the engine exhaust gas fractions used for
(2) domestic hot water, ξDHW(t), space heating, ξSH(t), in the heat
recovery boilers, and space cooling, ξSC(t), in the absorption
where ηe is the engine gas-to-electric efficiency and LHVgas is chiller, has to be one:
DHW (t ) SH (t ) SC (t ) 1 .
the lower heat value of natural gas.
The heat rate available from the exhaust gas recovered (7)
from the engine, Q ICE ,ex (t ) , is:
The overall volumetric flow rate of natural gas consumed 2.2.2. Domestic hot water energy balance. The heat rate
by the CCHP system, G CCHP (t ) , is: demanded for domestic hot water, H dem DHW
(t ) , must be
where the collector area is assumed to be known, since the 3.1. Economic and Environmental Objectives
optimal design of the energy devices is not the aim of this
work. The economic objective is to minimize the total energy
2.1.3. Modeling of the reversible heat pump. A reversible cost, Cost, that is the cost of the gas consumed by the CCHP
heat pump is used to meet space heating and cooling demands system, G CCHP (t ) , and the cost of buying electricity from the
in the heating and cooling modes, respectively. In the heating
mode, the electricity consumption of the heat pump, E HP (t ) , power grid, E buy (t ) :
P t ,
to supply the heat rate, H (t ) , is given by:
Cost grid (t ) Ebuy (t ) PgasGCCHP (t )
HP
E HP (t ) H HP (t ) / COPHP ,
(14)
(10) t
where COPHP is the coefficient of performance of the heat where Pgrid(t) is the time-of-day unit price of electricity from
pump in the heating mode. Modeling of cooling mode is the grid and Pgas is the constant unit price of natural gas.
similar to that described above. The environmental objective is to minimize the
2.1.4. Modeling of the thermal energy storages. The environmental impact, Env, in terms of CO2 emissions from
energy stored in the domestic hot water tank at time t, Hsto(t), the power grid and the consumed fuels. The CO2 emissions
can be expressed as: due to the use of electricity from the power grid are evaluated
E t .
space heating and cooling is similar to the above. system, G CCHP (t ) , [8]:
In order to satisfy the given time-varying user demands, 3.2. Multi-Objective Optimization Method
electricity and thermal energy balances are formulated by
matching supply and demand. With the economic objective function (Eq.14) and the
2.2.1. Electricity balance. The electricity rate demand, environmental one (Eq.15), the problem has two objective
E dem (t ) , and the electricity rate required by the heat pump, functions to be minimized. To solve this multi-objective
E (t ) , must be covered by the sum of the electricity rate problem, a single objective function is formulated as a
HP
weighted sum of the total energy cost, Cost, and the
delivered by the CCHP system, E CCHP (t ) , and the electricity environmental impact, Env, to be minimized:
Figure 2. Flow chart of the multi-objective optimization Figure 4. Energy rate demands of a hypothetical hotel in Italy.
model.
Figure 5. Time-of-day electricity unit price for industrial use Figure 6. Pareto fronts with and without discount on the
according to the Italian BTA6 tariff. excise fee of natural gas.
boiler is evaluated as the ratio of difference between the inlet In the second case (with discount on the excise fee of
and the outlet temperature of the engine exhaust gas in the natural gas), the Pareto front is obtained in the same way,
heat recovery boiler to the difference between the inlet where the points marked with a' and b' are obtained by
exhaust gas temperature and the ambient temperature. minimizing the daily energy cost and the daily CO2 emissions,
respectively.
4.2. Results In both cases, a significant reduction, 8%, in the CO2
emissions is gained from solution points a and a' (ω = 1) to
The results are presented in the following. the solution points c and c' (ω = 0.9) with a negligible 0.25%
4.2.1. Pareto front. Figure 6 shows the Pareto fronts obtained increase in the energy cost. The differences between the two
without and with the discount on the excise fee of natural gas Pareto fronts become more significant when the weight for
applicable to high-efficiency cogeneration systems (Primary the economic objective increases (left side). In the energy cost
Energy Saving (PES) > 0) [16]. In the first case, the natural minimization, at the point a', the daily energy cost is 1,223
gas tariff for industrial use described in Subsection 4.1.2 is €/d and it is reduced by about 3% as compared with the
adopted, considering the excise fee for industrial use for all energy cost at the point a. The total CO2 emissions are the
the natural gas consumed by the CCHP system [17]. In the same as those at the point a. When the weight for the
second case, the discount on the excise fee for natural gas is environmental objective increases, the sensitivity of the DES
involved, since the CCHP system has a PES > 0. According operation to the energy prices reduces, therefore the
with [17], this discount is applied to a 0.25 Nm3 volumetric difference between the Pareto fronts reduces (right side). At
flow rate of natural gas consumed by the CCHP system for the point b', the daily energy cost is 1,589 €/d and the daily
each kWh of electricity provided. The additional consumption CO2 emissions are the same as those at the point b, since,
of natural gas, which occurs when the CCHP system has an when the environmental objective is minimized, the operation
electrical efficiency less than 42%, is subjected to the of the DES is not sensitive to the energy prices. In the
industrial excise fee. Also the natural gas consumed by the environmental impact minimization, the daily energy cost at
boilers to directly provide heating for the domestic hot water the point b' is almost equal to that at the point b, because of
and space heating demands is subjected to the industrial the very small difference between the discounted excise and
excise fee [17]. the full excise prices for industrial use.
In the first case (without discount on the excise fee of 4.2.2. Optimal operational strategies at various trade-off
natural gas), the point marked with a is obtained by points. Each point on the Pareto front corresponds to a
minimizing the daily energy cost, and the daily energy cost is different operational strategy of the DES. The operators of the
1,260 €/d, whereas the daily CO2 emissions are 4,160 kg/d. DES can choose a compromise between the two objectives
The point marked with b is obtained by minimizing the from the Pareto front based on their cost and environmental
environmental impact (the daily CO2 emissions), and the daily priorities. In order to understand how the operational
energy cost is 1,594 €/d, whereas the daily CO2 emissions are strategies of the DES affect the energy cost and the CO 2
3,448 kg/d. The points between the extreme points are found emissions under different weight values, the results at various
by equally subdividing the weight interval into 100 spaces. trade-off points are shown in Figure 7. These trade-off points
belong to the Pareto front obtained when the discount on the
Table 1. Efficiency of energy devices and thermal storages. excise fee is involved (red Pareto front in Figure 6). Figure
7A points out that, as ω increases from 0 to 1, the share of the
Efficiency electricity load (the sum of electricity demand and electricity
Primary energy devices
Electrical Thermal rate required by the heat pump) satisfied by the CCHP
Internal combustion engine 0.35 0.50 significantly increases (5% to 59%), highlighting that the
Solar thermal plant 0.40 CCHP system allows to reduce the total energy cost. The
Secondary energy devices Efficiency opposite occurs to the share of electricity load covered by the
Heat pump COPHP = 3.0 grid power. The maximum value is obtained when the
Heat recovery boiler ηHRboil = 0.75 ηboil = 0.85 environmental impact is minimized, since the space heating
Thermal energy storage Efficiency demand is fully satisfied by the heat pump, as shown in Figure
DHW and SH storages 0.90 7c. As ω increases from 0 to 1, the share of the space heating
increases, and the integration with the boiler driven by natural
gas is not needed. When the weight of the economic objective
is close to 1 (ω = 0.8 and ω = 0.9), the natural gas boiler is
used to satisfy a small share (3 - 5%) of the domestic hot
water demand. Although in the economic optimization the use
of the CCHP system attains the maximum value, exhaust gas
are not enough to satisfy the domestic hot water and space
heating demands. Therefore, the use of natural gas boilers
significantly increases consistently with the reduction in the
use of the heat pump. The remarkable difference in the
operation of the DES from ω = 1 to ω = 0.9 corresponds to
the big jump from a' to c' shown in Figure 6.
ACKNOWLEDGMENTS
REFERENCES