Economical Optimization of Microgrids: A Non-Causal Model

Abstract

In this paper we present an economical optimization model for a microgrid connected to the general electricity grid by minimizing the total operating cost over a given period in the presence of uncertain future grid electricity prices. The microgrid is modeled to consist of five distinct blocks, four of which make up the microgrid and the fifth one being the connection to the general electricity grid. Each of these components has various adjustable attributes, allowing for the simulation of different kinds of consumers as well as different storage and generation technologies. Consumption and intermittent generation are exogenous variables derived from existing datasets. Under uncertain future grid electricity prices, the storage component introduces a non-causal dependency into the model, to cope with this non-causality, we present various storage use strategies and analyze the resulting cost patterns using real electricity price data and Monte Carlo simulations.

Steering the adoption of battery storage through electricity tariff design

“…In order to investigate the impact of electricity tariff design on the adoption of battery storage, a simulation model is used. The model used is a refinement of the model presented in [26]: a residential consumer is modelled, consisting at a minimum of an exogenous load profile and a connection to the electricity grid, which serves as a limitless source or sink of electrical energy. Additionally, local distributed generation and/or storage can also be present.…”

“…With the addition of time-varying energy prices, as is the case for some simulations setups discussed below, this linkage through the energy stored in the storage component, causes the system to become a non-causal one, as the optimal decision at any given moment is dependent on future events. The modelling intricacies this entails are further discussed in [26].…”