Stochastic Optimization of Microgrid Operation With Renewable Generation and Energy Storage

Abstract

The operation of electric energy storages (EES) in power systems where variable renewable energy sources (VRES) and EES must contribute to securing the supply can be considered as an arbitrage against scarcity. The value of using stored energy instantly must be balanced against its potential future value and future risk of scarcity. This paper proposes a multi-stage stochastic programming model for the operation of microgrids with VRES, EES and thermal generation that is divided into a short- and a long-term model. The short-term model utilizes information from forecasts updated every six hours, while the long-term model considers the value of stored energy beyond the forecast horizon. The model is solved using stochastic dual dynamic programming and Markov chains, and the results show that the significance of accounting for short- and long-term uncertainty increases for systems with a high degree of variable renewable generation and EES and decreasing dispatchable generation capacity.<br>