Journal of Energy Management and Technology

Journal of Energy Management and Technology

Exploring the Potentials of Demand Side Flexibilities on the Investment Decisions of Renewable-Powered Microgrids

Document Type : Original Article

Authors
Azarbaijan Shahid Madani University
Abstract
In distribution networks with substantial penetrations of variable generation (VG), demand-side management (DSM) schemes might be seen as an ideal replacement for delivering spatiotemporal energy arbitrage. From a system viewpoint, it would be advantageous to include DSM in the microgrid (µG) planning issue, but it may lead to profit scarcity for µG operators or end-users. To that purpose, the equilibrium issue in this work examines interactions between DSM and µG planning within a competitive electricity market. Reliability requirements place restrictions on the issue in order to ensure that there is an adequate supply of µGs in the islanding mode. The scenarios are reduced to make the model more obedient while taking into account the uncertainty brought on by VG. Finally, the suggested issue is resolved on a test bed with a VG portfolio and various techno-economic characteristics of potential DSM and µG cutting-edge technologies using the diagonalization approach. The case study demonstrates that the availability of DSM schemes has a substantial impact on the optimum µG investment choices. As a result, implementing DSM not only allows for a large delay in investments but also improves the system's flexibility and dependability in times of crisis. Overall, the DSM programs have the potential to positively impact on investment decisions in µG planning by reducing capital expenditure, optimizing resource utilization, improving grid reliability, providing cost savings, and facilitating the integration of renewable energy sources.
Keywords

Subjects


1. R. H. Lasseter, “Smart distribution: Coupled microgrids,” Proceedings of the IEEE, vol. 99, no. 6, pp. 1074-1082, 2011.
2. D. Olivares, A. Mehrizi-Sani, A. H. Etemadi, C. A. Cañizares, R. Iravani, M. Kazerani, A. H. Hajimiragha,
“Trends in microgrid control,” IEEE Transactions on Smart Grid, vol. 5, no. 4, pp. 1905-1919, 2014.
3. J. Salehi, A. Namvar, et al, “Effect of power-to-gas technology in energy hub optimal operation and gas network
congestion reduction,” Energy, vol. 240, pp. 122835, 2022.
4. F. Samadi Gazijahani, J. Salehi, M. Shafie-Khah, J. PS Catalão, “Spatiotemporal splitting of distribution networks
into self-healing resilient microgrids using an adjustable interval optimization,” IEEE Transactions on Industrial Infor-
matics, vol. 17, no. 8, pp. 5218-5229, 2020.
5. H. Shayeghi, M. Alilou. “Technical-economic management of smart home energy system in the presence of stochastic
and seasonal behavior of PV and EV.” Journal of Energy Management and Technology vol. 6, no. 4, pp. 270-281, 2022.
6. S. Mazaheri Khamaneh, S. Tohidi, M. Reza Feyzi, V. Sohrabi Tabar. “Risk-aware multi-objective planning of a renewable
hybrid microgrid incorporating energy storage systems and responsive loads.” Journal of Energy Management and Tech-
nology, vol. 7, no. 3, pp. 125-133, 2023.
7. F. Jabari, M. Nazari-heris, M. Abapour. “Implementation and Investigation of Demand-Side Management Polices in
Iran’s Industrial and Commercial Sectors.” Journal of Energy Management and Technology vol. 7, no. 1, pp. 34-42, 2023.
8. H. Fathima, K. Palanisamy, “Optimization in microgrids with hybrid energy systems–A review,” Renewable and Sustainable Energy Reviews, vol. 45, pp. 431-446, 2015.
9. S. A. Arefifar, Y. A-R. I. Mohamed, T. H. M. EL-Fouly, “Optimum microgrid design for enhancing reliability and supply-
security,” IEEE Transactions on Smart Grid, vol. 4, no 3, pp. 1567-1575, Sep. 2013.
10. F. Samadi Gazijahani, J. Salehi, and M. Shafie-khah, “Benefiting from Energy-Hub Flexibilities to Reinforce Distribution
System Resilience: A Pre-and Post-Disaster Management Model,” IEEE Systems Journal, vol. 16, no 2, pp. 3381-3390,
2022.
11. Z. Wang, et al, “Networked microgrids for self-healing power systems,” IEEE Transactions on Smart Grid, vol. 2,
no 1, pp. 1-10, Apr. 2015.
12. Z. Wang, J. Wang, “Self-Healing resilient distribution systems based on sectionalization into microgrids,” IEEE Trans-
actions on Power Systems, vol. 3, no 1, pp. 1-10, Oct. 2015.
13. FS. Gazijahani, et al. “Joint energy and reserve scheduling of renewable powered microgrids accommodating price
responsive demand by scenario: a risk-based augmented epsilon-constraint approach.” Journal of Cleaner Production,
vol. 262, pp. 121365, 2020.
14. L. Che, X. Zhang, M. Shahidehpour, A. Alabdul-wahab, A. Abusorrah, “Optimal interconnection planning of com-
munity microgrids with renewable energy sources,” IEEE Transactions on Smart Grid, vol. 1, no. 5, pp. 1-10, 2015.
15. A. Khodaei, S. Bahramirad, M. Shahidehpour,“ Micro-grid planning under uncertainty,” IEEE Transactions on Smart
Grid, vol. 30, no. 5, pp. 2417- 2425, Sep. 2015.
16. L. Che, X. Zhang, M. Shahidehpour, A. Alabdulwahab, Y. A Turki, “Optimal planning of Loop-Based micro-grid Topol-
ogy,” IEEE Trans. on Smart Grid, vol. 2, no. 4, pp. 1-11, Jul. 2016.
17. K. Nekooei, MM. Farsangi, NH. Pour, K. Lee, “An Improved multiobjective harmony search for optimal placement of
DGs in distribution systems,” IEEE Transactions on Smart Grid, vol. 4, no. 1, pp. 557–567, 2013.
18. F. Samadi Gazijahani, J. Salehi, “Robust design of microgrids with reconfigurable topology under severe uncer-
tainty,” IEEE Transactions on Sustainable Energy, vol. 9, no. 2, pp. 559-569, Apr. 2018.
19. A. Khodaei M. Shahidehpour, “Microgrid-based cooptimization of Generation and transmission planning in
power systems,” IEEE Transactions on Power Systems, vol. 28, no. 2, pp. 1582–1590, May 2013.
20. V. Amir, M. Azimian, “Dynamic multi-carrier microgrid deployment under uncertainty,” Applied Energy, vol. 260,
pp. 114293, 2020.
21. J. Wei, Y. Zhang, J. Wang, X. Cao, M. Armoghan Khan, “Multi-period planning of multi-energy microgrid with
multi-type uncertainties using chance constrained information gap decision method,” Applied Energy, vol. 260, pp.
114188, 2020.
22. J. Gao, et al, “A cost-effective two-stage optimization model for microgrid planning and scheduling with compressed air energy storage and preventive maintenance,” International Journal of Electrical Power & Energy Systems, vol. 125, pp.
106547, 2021.
23. H. Lotfi, A. Khodaei, “AC versus DC microgrid planning,” IEEE Transactions on Smart Grid, vol. 8, no. 1, pp. 296-304,
2017.
24. F. Samadi Gazijahani, J. Salehi, and M. Shafie-khah, “A Parallel Fast-Track Service Restoration Strategy Relying on
Sectionalized Interdependent Power-Gas Distribution Systems,” IEEE Transactions on Industrial Informatics, vol. 19, no.
3, pp. 1811-1821, 2022.
25. J. Salehi, F. Samadi Gazijahani, and A. Safari, “Stochastic Simultaneous Planning of Interruptible Loads, Renewable
Generations and Capacitors in Distribution Network,” Journal of Operation and Automation in Power Engineering, vol. 10,
no. 2, pp. 113-121, 2022.
26. M. Quashie, et al, “Optimal planning of microgrid power and operating reserve capacity,” Applied Energy, vol. 210,
pp. 1229-1236, 2018.
27. Y. Xiang, J. Liu, Y. Liu, “Robust energy management of microgrid with uncertain renewable generation and load,”
IEEE Transactions on Smart Grid, vol. 7, no. 2, pp. 1034-1043, 2015.
28. S. Pineda, A. Conejo, “Scenario reduction for risk-averse electricity trading,” IET Generation, Transmission and Distri-
bution, vol. 4, no. 6, pp. 694-705, 2010.
29. M. Baran, F. Wu, “Network reconfiguration in distribution systems for loss reduction and load balancing,” IEEE Power
Engineering Review, vol. 9, no. 4 , pp. 101-102, 1989.
30. The General Algebraic Modeling System (GAMS) Software, [Online]. Available: http://www.gams.com.
31. https://www.gams.com/latest/docs/S_BARON.html.
32. S. Najafi Ravadanegh, M-R. Jannati-Oskuee, and Gevork B. Gharehpetian. “Resiliency-oriented dynamic expansion
planning of MG-based distribution networks.” Journal of Energy Management and Technology vol. 6, no. 1, pp. 44-53,
2022.
Volume 8, Issue 3
Summer 2024
Pages 168-177

  • Receive Date 23 May 2023
  • Revise Date 04 December 2023
  • Accept Date 22 December 2023