Optimal Power Management for Grid-Connected Microgrid Considering Modelling of Different Electricity Cost and Battery Degradation Cost

This paper proposes a novel power flow control and optimization method for microgrid in grid-connected mode. The important factors, including the electricity cost under different electricity trading policies, battery degradation cost under different state of charge (SOC) and depth of discharge (DOD) conditions, as well as the different battery charging/discharging efficiencies have been explored. A universal normalized mathematical relation at critical operation points between all the costs has been developed and verified. Based on the dynamic programming algorithm, our proposed optimization approach can find the global optimal solution to microgrid power flow dispatch, for different electricity trading and battery storage conditions. Typical cases have been studied, modelled, simulated, and experimentally validated in this research.