On energy management optimization for microgrids enriched with renewable energy sources

The current electric power system isfacing the challenges of environmental protection,increasing global electricity demand, high reliability requirement, cleanliness of energy, and planning restrictions. To evolve towards green and smart electric power system, centralized generating facilities are now being transformed into smaller and more distributed generations. As a consequence, the concept of microgrid emerges, where a microgrid can operate as a single controllable system and can be assumed as a cluster of loads and distributed energy resources, which may include many renewable energy sources and energy storage systems. The energy management of large numbers of distributed energy resources is needed for reliable operation of microgrid system. Therefore, energy management is the fundamental part of the microgrid operation for economical and sustainable development. In this regard, this thesis focuses on proposing energy management optimization models for optimal operation of microgrid system that include proposed practical Li-ion battery degradation cost model. These different energy management models include objective functions of operating cost of distributed generators, emission cost of conventional generation source, maximum utilization of renewable energy sources, battery degradation cost, demand response incentives, and load shedding penalization cost, with microgrid component and physical network constraints. A comprehensive conceptual seven layer model is also developed to provide standardized insights in implementing real transactive energy systems.