Influence of different time horizon-based battery energy management strategies on residential microgrid profitability

Abstract The growing share of renewable sources in future residential microgrids generates variability as well as price volatility on European electricity markets. Therefore, to handle this issue and enhance the system profitability, advanced energy management strategies should be developed. To that end, this paper proposes to assess the relevance of an energy management strategy based on 48-hour horizon compared to a 24-hour horizon one in order to perform energy arbitrage. This study considers a residential microgrid based on photovoltaic generation and storage connected to the main grid. Proposed 48-hour energy management strategy provides additional management possibilities such as the ability to delay trades (charge today, discharge tomorrow) and a larger range of hours to use the storage. Particle Swarm Optimizer is used to solve the optimization part. Besides, a sensitivity analysis is investigated to assess the economic impact of forced storage of solar surplus power in order to increase self-consumption rate and storage size. Obtained results demonstrates better profitability by using proposed strategy. Profitability was improved by more than 11% compared to classical algorithms for the tested scenarios. The findings of this study illustrate that the use of 48-hour horizon-based energy management strategy can be more profitable and lead residential microgrids to decrease their operation cost and increase power balance for all grid stakeholders through feed-in price leverage.