Stochastic Optimization of Renewable-Based Microgrid Operation Incorporating Battery Operating Cost
Stochastic Optimization of Renewable-Based Microgrid Operation Incorporating Battery Operating Cost
Abstract—Integration of renewable energy resources in micro- of RE and ES. Specifically, due to the stochastic nature of the
grids has been increasing in recent decades. Due to the random- renewable resources such as solar and wind, the mismatch in
ness in renewable resources such as solar and wind, the power forecast and realized power may result in extra operating costs
generated can deviate from forecasted values. This variation may for committing costly reserve units or penalty cost for curtailing
cause increased operating costs for committing costly reserve units
demand. In addition, to better utilize the renewable energy in
or penalty costs for shedding load. In addition, it is often desired
to charge/discharge and coordinate the energy storage units in an the microgrid it is necessary to charge/discharge and coordi-
efficient and economical way. To address these problems, a novel nate multiple energy storage units in an efficient and economical
battery operation cost model is proposed which considers a battery way. To address these problems, the stochastic model of renew-
as an equivalent fuel-run generator to enable it to be incorporated able energy and load demands as well as the working character-
into a unit commitment problem. A probabilistic constrained ap- istics and operating cost of the ES devices should be incorpo-
proach is used to incorporate the uncertainties of the renewable rated into the UC and ED.
sources and load demands into the unit commitment (UC) and eco- Several approaches related to stochastic optimization of op-
nomic dispatch problems. eration for renewable-based microgrids have been conducted.
Index Terms—Energy storage, microgrids, renewable energy, In [4], the day-ahead scheduling of a microgrid is developed as
unit commitment. a two-stage stochastic problem in which the first stage identifies
the optimal dispatch for the distributed units while the second
stage considers the variability and uncertainty of photovoltaic
I. INTRODUCTION (PV) and wind energy generation. The probabilistic UC in [5]
0885-8950 © 2015 IEEE. Personal use is permitted, but republication/redistribution requires IEEE permission.
See http://www.ieee.org/publications_standards/publications/rights/index.html for more information.
Authorized licensed use limited to: SHIBAURA INSTITUTE OF TECHNOLOGY. Downloaded on February 28,2024 at 02:07:23 UTC from IEEE Xplore. Restrictions apply.
2290 IEEE TRANSACTIONS ON POWER SYSTEMS, VOL. 31, NO. 3, MAY 2016
in the economic dispatch problem. This cost model also makes of storage capacity available:
economic dispatch for multiple batteries possible in the micro-
grid system without introducing additional objective functions (4)
to maximize their efficiencies and their life spans. Specifically,
the following contributions are made: where is the total lifetime cycling capacity of a battery.
• A novel battery operation cost model is proposed ac- By convention, an electrochemical battery, such as lead acid or
counting for charge/discharge efficiencies as well as lithium-ion, is often considered to be at the end of its life when
cycling life time of the batteries. The model enables the its has degraded to 80% of its rated energy capacity [17]. As-
battery to be treated as an equivalent fossil fuel generator suming that a battery will be discharged to its rated depth of
in the UC and ED. discharge every cycle, the average capacity degradation rate is
• A probabilistic constrained approach is proposed to incor- in which is the battery rated capacity and is
porate the uncertainties of the renewable sources and load the rated life time.
demands in microgrids into the UC and ED problems. The As opposed to a lead acid or a lithium-ion battery, a vanadium
UC is solved by stochastic dynamic programming. redox battery (VRB) has negligible capacity degradation from
repeated deep discharges and recharges. The cycle life of a VRB
II. BATTERY OPERATION COST MODEL mainly depends on the life expectancy of its proton exchange
For a small-scale fossil fuel generator in a microgrid, the op- membrane and its pumps. A VRB can last over 10 000 cycles
erating cost is typically the fuel cost. The cost can be character- until its membrane degrades or the pumps fail.
ized as a function of its output power [3], [10]: Therefore, the total lifetime usable capacity of a battery can
be estimated as follows:
• Lead acid and lithium-ion battery:
(1) (5)
where (in $/gal) is the fuel price, (in gal/h) is (6)
fuel consumption and is output power of generator .
As opposed to a generator, a battery consumes no fuel to op- • Vanadium redox battery:
erate. This makes it a challenge to evaluate the operating cost of
a battery. However, in terms of the energy conversion process, (7)
a battery and a generator are analogous. In a generator, energy
is stored in fuel form and generated into electricity via combus- where is the depth of discharge.
tion process. Similarly, in a battery, electricity is charged and The operating cost model of the battery is built based on the
discharged via an electrochemical process. In general, charging similarity with fuel cost model of a generator, therefore there
a battery is analogous to refilling fuel for a generator; thus, the is little added complexity over standard approaches. The kWhf
input electricity (kWh) can be considered as the “fuel” for the price for a battery does not change as frequently as fuel prices.
battery. The input electricity cost is denoted as to empha- The price includes the replacement cost, the rated ca-
size this analogy. Therefore, the operating cost of a battery can pacity, and life cycle which are determined at the time of pur-
be determined in the same form as (1) by deriving price chase and do not need to be updated.
and consumption of the battery. In this paper, lead-acid,
lithium-ion, and vanadium redox batteries are considered. B. Consumption for Batteries
in which represents the cost for fuel and represents in which is the battery output power and is the power
availability cost. The availability cost includes fuel transporta- loss during discharge.
tion cost and other service costs such as cost for on-site storage The consumption of a battery during charge is defined
facility. Depending on the location of the generator, can be as the energy loss for charging the battery during a unit
much larger than due to transportation and other service time:
costs.
(9)
Similarly, the price for a battery can be determined:
in which is the battery charge power, is
(3) the power loss during charge.
Depending on battery type, and can be character-
where is the price of energy used to charge the battery ized as functions of and , respectively. In this section,
and represents the availability cost of battery capacity. In and are characterized for lead-acid, lithium-ion, and
a microgrid, if renewable energy is used to charge the battery, vanadium redox batteries.
can be zero; therefore, is the main portion of the 1) Lead Acid and Lithium-Ion Battery: The power loss in
price. In this paper, is be defined as the cost to have 1 kWh lead-acid or li-ion batteries is mainly caused by the heat loss
Authorized licensed use limited to: SHIBAURA INSTITUTE OF TECHNOLOGY. Downloaded on February 28,2024 at 02:07:23 UTC from IEEE Xplore. Restrictions apply.
NGUYEN AND CROW: STOCHASTIC OPTIMIZATION OF RENEWABLE-BASED MICROGRID OPERATION 2291
For lead-acid and li-ion batteries, the voltage drop can be de-
termined based on the empirical method proposed in [19]:
• During discharge:
From (16), (17), the consumption during charge and
(11) discharge for the VRB can be determined:
• During discharge:
• During charge:
(12)
(18)
where is the internal ohmic resistance, is a constant which
can be calculated from manufacturer's data, and is the rated • During charge:
capacity of the battery.
From (11), (12), the consumption during charge and
discharge for lead acid and lithium-ion batteries can be deter-
mined: (19)
• During discharge:
A. Problem Formulation
In this paper, the stochastic unit commitment is formulated to
(13) minimize the expected operation cost of a microgrid over a time
horizon . The objective function is therefore
• During charge:
(20)
(21)
in which
(14)
and the charging batteries; is the cost due to power R6 Once a generator is brought online, it should remain on-
mismatch; line for a minimum set time; when a generator is powered
• are respectively the binary status off, it should remain off a minimum time before it can be
during period of the generator and battery ; restarted.
due to the fact that a battery could In a small system such as a microgrid, grid power should not be
not charge and discharge at the same time. used to charge the energy storage because of the relatively low
• is the fuel price for generator ; ESS round-trip efficiency. Therefore, ESS should not charge
is the price for battery ; other ESS, nor should grid power be used for energy storage.
• is the fuel consumption of generator ; Only renewable energy should be used to charge the ESS; this
and are respectively the is reflected in constraint R2.
consumptions during discharging and charging of The above constraints are formulated as follows:
battery ;
• are respectively the dispatched
power during period to generator , discharging battery
and charging battery ; is the power mismatch during
period .
To better define the problem, the following conventions are
introduced:
• Charging power is considered as negative generation.
• Renewable sources (PV and Wind turbines generators) are
not dispatchable and considered as a negative load. The net if is discharging
load at period is defined as
if is charging
if is online
Since are random, is consid-
ered as a random variable. if is offline
• The batteries are charged only when .
• The power mismatch during period is the differ- where is the state of charge of battery in period and
ence between total generation and the net load defined as can be updated:
follows:
— If if discharging
if charging.
the grid to supply its load, while choosing a larger will in- where is the CDF of Standard Normal distribution .
crease the probability that the system will export excess renew- Therefore constraint R1 can be realized as
able power to the grid. The selection of and provide a level
of freedom to decide whether or not and how much to import/ex-
port power from/to the grid, depending on desired energy man- if
agement policies.
if
B. Uncertainties in Forecasting Error of Load Demands and The system will generate (or charge) more or less power by
Renewable Sources choosing different values of and . The expected operation
To realize the cost function (21) and constraint R1, the cu- cost in (21) can be expressed:
mulative distribution function (CDF) and mean value of
need to be specified. In practice, the predicted values of load,
PV, and wind generation at time period can be obtained be- (33)
forehand based on forecast. Therefore, the realization of actual
load, PV, wind generation and net load can be expressed as [5], in which
[8], [9]
(28)
(29) (34)
(30)
(31) (35)
where is the price of the electricity which is ex-
where are the forecasting errors which
ported (imported) to the grid.
depend on the forecasting method and forecasting horizon. To
model the uncertainties of load and renewable source forecast, C. Stochastic Dynamic Programming
are considered to be random vari-
ables. Although the wind power forecast error can be more This UC problem can be categorized as a sequential deci-
precisely described with a Weibull, Cauchy [20] or mixed sion-making problem for which dynamic programming (DP)
Normal-Laplace distribution [21], it can be approximated with is well known. Dynamic programming is a method to find the
a zero mean Normal distribution [22]. Furthermore, the net shortest route to the destination by breaking it down to a se-
load error , which is the sum of all errors, can be quence of steps over time; at each step DP finds the possible op-
approximated with a zero mean Normal distribution [22] due to timum sequences (routes) based on the possible optimum sub-
the fact that the load demands and PV generation forecast errors sequences in the previous steps and finally find the optimum
are very close to a Normal distribution [5], [8], [9], [22]. The sequence at last step. The main advantage of DP is it can main-
standard deviation of can be calculated as follows: tain solution feasibility by its ability to find the optimum subse-
quence while searching for the optimum sequence. The primary
drawback to DP is it can be computationally burdensome. For
example, in an -unit system, there are combinations
(32) at each period and for periods the total number of combina-
tions is [3]. For a large scale system the computation
As a result, the following expected values and probabilities can required to traverse this space can be overwhelming. However,
be calculated: in microgrid applications, the small number of units and large
number of constraints significantly decrease the search space,
therefore DP can be an appropriate choice of algorithm [13],
[23].
Due to the uncertainties associated with the stochastic
problem, the cost at each stage is generally a random variable
[24]. Therefore, in the stochastic DP technique, the problem is
formulated to minimize the expected cost. For applying DP, the
states space at stage is defined as follows:
(36)
(37)
where is the set of feasible states in stage ; is the number
of states of ; is the binary status of unit which can be
a generator, a discharging battery or a charging battery. is a
Authorized licensed use limited to: SHIBAURA INSTITUTE OF TECHNOLOGY. Downloaded on February 28,2024 at 02:07:23 UTC from IEEE Xplore. Restrictions apply.
2294 IEEE TRANSACTIONS ON POWER SYSTEMS, VOL. 31, NO. 3, MAY 2016
if
TABLE III
otherwise. BATTERIES DATA
(38)
where is the minimum cost to arrive to state ;
is the operating cost for state and is the
transition cost from state to state .
The operating cost can be found by performing an
economic dispatch (ED) to minimize the cost function (33) with
constraints R1, R4, and R5. In this paper, a steepest descent
algorithm is used to solve the ED.
TABLE IV
NET LOAD FORECAST ERROR STANDARD DEVIATION
to find the optimal day-ahead scheduling for a typical micro- [20] B. Hodge and M. Milligan, “Wind power forecasting error distributions
grid with a diesel generator, PV arrays, wind turbines, VRB, over multiple timescales,” in Proc. 2011 IEEE Power and Energy Soc.
General Meeting, 2011, pp. 1–8.
and AGM batteries. Results show the proposed approach can [21] J. Wu, B. Zhang, H. Li, Z. Li, Y. Chen, and X. Miao, “Statistical dis-
maintain the system optimal operation with a high probability tribution for wind power forecast error and its application to determine
without investigating a vast number of scenarios. Future work optimal size of energy storage system,” Int. J. Elect. Power Energy
in this area will include the consideration of electricity prices Syst., vol. 55, pp. 100–107, 2014.
[22] R. Doherty and M. O'Malley, “A new approach to quantify reserve de-
in selecting and to maximize the microgrid's profit. mand in systems with significant installed wind capacity,” IEEE Trans.
Power Syst., vol. 20, no. 2, pp. 587–595, May 2005.
REFERENCES [23] L. M. Costa and G. Kariniotakis, “A stochastic dynamic programming
[1] , N. Hatziargyriou, Ed., Microgrids: Architectures and Control. New model for optimal use of local energy resources in a market environ-
York, NY, USA: Wiley, 2014. ment,” in Proc. 2007 IEEE Lausanne Power Tech, 2007, pp. 449–454.
[2] H. Liang and W. Zhuang, “Stochastic modeling and optimization in a [24] D. P. Bertsekas, Dynamic Programming: Deterministic and Stochastic
microgrid: A survey,” Energies, vol. 7, no. 4, pp. 2027–2050, 2014. Models, D. P. Bertsekas, Ed. Englewood Cliffs, NJ, USA: Prentice-
[3] A. J. Wood and B. F. Wollenberg, Power Generation, Operation, Con- Hall, 1987.
trol. New York, NY, USA: Wiley, 1996, vol. 2. [25] G. Kear, A. A. Shah, and F. C. Walsh, “Development of the all-vana-
[4] W. Su, J. Wang, and J. Roh, “Stochastic energy scheduling in mi- dium redox flow battery for energy storage: A review of technological,
crogrids with intermittent renewable energy resources,” IEEE Trans. financial and policy aspects,” Int. J. Energy Res., vol. 36, no. 11, pp.
Smart Grid, vol. 5, no. 4, pp. 1876–1883, Jul. 2014. 1105–1120, 2012.
[5] X. Peng and P. Jirutitijaroen, “A probabilistic unit commitment [26] MQ Power [Online]. Available: http://www.powertechengines.com/
problem with photovoltaic generation system,” in Proc. TENCON MQP-DataSheets/MQP050IZ_Rev_0.pdf
2009—2009 IEEE Region 10 Conf., Jan. 2009, pp. 1–6. [27] Prudent Energy [Online]. Available: http://www.pdenergy.com/pdfs/
[6] M. Lubin, C. G. Petra, M. Anitescu, and V. Zavala, “Scalable sto- Prudent_Energy_Product_Brochure_2011.pdf
chastic optimization of complex energy systems,” in Proc. 2011 Int. [28] Sunxtender [Online]. Available: http://www.sunxtender.com/solarbat-
Conf. IEEE High Performance Computing, Networking, Storage and tery.php?id=11
Analysis (SC), 2011, pp. 1–10. [29] D. Hung, N. Mithulananthan, and K. Lee, “Determining PV penetration
[7] G. Martinez, N. Gatsis, and G. B. Giannakis, “Stochastic program- for distribution systems with time-varying load models,” IEEE Trans.
ming for energy planning in microgrids with renewables,” in Proc. Power Syst., to be published.
2013 IEEE 5th Int. Workshop Computational Advances in Multi-Sensor [30] A. A. Moghaddam, A. Seifi, and T. Niknam, “Multi-operation man-
Adaptive Processing (CAMSAP), 2013, pp. 472–475. agement of a typical micro-grids using particle swarm optimization: A
[8] S. Mohammadi, S. Soleymani, and B. Mozafari, “Scenario-based comparative study,” Renew. Sustain. Energy Rev., vol. 16, no. 2, pp.
stochastic operation management of microgrid including wind, pho- 1268–1281, 2012.
tovoltaic, micro-turbine, fuel cell and energy storage devices,” Int. J. [31] N. Lu, R. Diao, R. Hafen, N. Samaan, and Y. Makarov, “A comparison
Elect. Power Energy Syst., vol. 54, no. 0, pp. 525–535, 2014. of forecast error generators for modeling wind and load uncertainty,”
[9] T. Niknam, R. Azizipanah-Abarghooee, and M. R. Narimani, “An effi- in Proc. 2013 IEEE Power and Energy Soc. General Meeting (PES),
cient scenario-based stochastic programming framework for multi-ob- 2013, pp. 1–5.
jective optimal micro-grid operation,” Appl. Energy, vol. 99, no. 0, pp. [32] F. Kreikebaum, R. Moghe, A. Prasai, and D. Divan, “Evaluating the
455–470, 2012. application of energy storage and day-ahead solar forecasting to firm
[10] M. Mazidi, A. Zakariazadeh, S. Jadid, and P. Siano, “Integrated sched- the output of a photovoltaic plant,” in Proc. 2011 IEEE Energy Con-
uling of renewable generation and demand response programs in a mi- version Congr. Expo. (ECCE), 2011, pp. 3556–3561.
crogrid,” Energy Convers. Manage., vol. 86, no. 0, pp. 1118–1127, [33] A. Zakariazadeh and S. Jadid, “Energy and reserve scheduling of mi-
2014. crogrid using multi-objective optimization,” in Proc. 22nd Int. Conf.
[11] H. Bilil, G. Aniba, and M. Maaroufi, “Probabilistic economic emission Exhib. Electricity Distribution (CIRED 2013), 2013, pp. 1–4.
dispatch optimization of multi-sources power system,” Energy Pro-
cedia, vol. 50, no. 0, pp. 789–796, 2014.
[12] A. A. ElDesouky, “Security and stochastic economic dispatch of power Tu A. Nguyen received the B.S. degree in Power Sys-
system including wind and solar resources with environmental consid- tems from Hanoi University of Science and Tech-
eration,” Int. J. Renew. Energy Res. (IJRER), vol. 3, no. 4, 2013. nology, Hanoi, Vietnam, in 2007 and the Ph.D. de-
[13] T. Nguyen, X. Qiu, J. Guggenberger, II, M. Crow, and A. Elmore, gree from Missouri University of Science and Tech-
“Performance characterization for photovoltaic-vanadium redox bat- nology, Rolla, MO, USA, in 2015.
tery microgrid systems,” IEEE Trans. Sustain. Energy, vol. 5, no. 4, He worked as a Power Transformer Test Engineer
pp. 1379–1388, Oct. 2014. in ABB's High Voltage Test Department in Vietnam
[14] Y. Tan, Y. Cao, C. Li, Y. Li, L. Yu, Z. Zhang, and S. Tang, “Microgrid from 2008 to 2009. His research interests include
stochastic economic load dispatch based on two-point estimate method microgrid system modeling/analysis and power
and improved particle swarm optimization,” Int. Trans. Elect. Energy electronics applications in microgrid systems.
Syst., 2014.
[15] J. M. Lujano-Rojas, G. J. Osorio, and J. P. Catalao, “A probabilistic
approach to solve economic dispatch problem in systems with inter-
mittent power sources,” in Proc. 2014 IEEE PES T&D Conf. Expo.,
2014, pp. 1–5. M. L. Crow (S'83–M'90–SM'94–F'10) received the
[16] Y. Zhang, N. Gatsis, and G. B. Giannakis, “Risk-constrained energy B.S.E. degree from the University of Michigan, Ann
management with multiple wind farms,” in Proc. 2013 IEEE PES In- Arbor, MI, USA, and the Ph.D. degree from the Uni-
novative Smart Grid Technologies (ISGT), 2013, pp. 1–6. versity of Illinois, Urbana/Champaign, IL, USA.
[17] T. Markel, K. Smith, and A. Pesaran, “Improving petroleum displace- She is the F. Finley Distinguished Professor of
ment potential of phevs using enhanced charging scenarios,” in EVS-24 Electrical Engineering at the Missouri University
NREL/CP-540-45730, 2009. of Science & Technology, Rolla, MO, USA. Her
[18] H. A. Kiehne, Battery Technology Handbook. Boca Raton, FL, USA: research interests include computational methods for
CRC Press, 2003, vol. 60. dynamic security assessment and the application of
[19] O. Tremblay and L.-A. Dessaint, “Experimental validation of a battery power electronics in bulk power systems.
dynamic model for ev applications,” World Elect. Vehicle J., vol. 3, no. Prof. Crow is a Registered Professional Engineer
1, pp. 1–10, 2009. in the State of Missouri.
Authorized licensed use limited to: SHIBAURA INSTITUTE OF TECHNOLOGY. Downloaded on February 28,2024 at 02:07:23 UTC from IEEE Xplore. Restrictions apply.