1st IEEE International Conference on Power Electronics.

Intelligent Control and Energy Systems (ICPEICES-2016)

Planning and Operational Strategy of a

Renewable Energy Microgrid
Considering Reliability

Anupam Kamboj land Saurabh Chanana2

ISchool of Renewable Energy & Efficiency, National Institute of Technology, Kurukshetra, India
2Department of Electrical Engineering, National Institute of Technology, Kurukshetra, India

Abstract-Recently, Increase in level of environment N 20, Years of lifetime

emissions and growing energy demand have became a Lc CriticaliSensitive load
serious concern and it has made clean and renewable energy PpfG Amount of electicity puchased from the
sources more appealing. The micro-grid has attracted
grid(kWh)
considerably good interest as it utilizes different energy
PstG Amount of electricity sold to the grid(kWh)
sources all together and provides high quality and reliable
electricity. In this work the planning and operational
Sui Start up cost of ith unit
strategy of a renewable energy micro-grid has been discussed Sdi Shut down cost of ith unit
in light of environmental and economic consideration. The Pres Power generated from RE sources at each hour
optimum capacity and type of various Distributed Pi Power generated from ith unit, MT FC or DE
Generation (DG) sources have been found out and their E Annual load incremental rate, E 2% assumed
=

operational strategy for optimum energy management is

a +1 when battery is discharging, -1 when
obtained. The Net Present Value (NPV) function taken in the eharging
objective function is used as an economic indicator which
Dtdy Load demand at tth hour, ddth day, yth year
justities the investment in the micro-grid. The NPV function
Dy Load demand at yth year
containing initial investment cost, Energy Management
System(EMS) strategic cost, maintenance and operation cost,
Do Present Load
reliability and credits related to reduction in the Ci,min Minimum capacity limit for ith unit
environment pollution is then maximized using the mixer Ci,max Maximum capacity limit for ith unit
integer non linear programming(MINLP) which finally Ci Capacity of ith unit
determines the optimum capacity and operational strategy of SOC State of charge of battery
various DG sources present in the micro-grid.
Keywords-Micro-grid; Planning; Operation; I. INTRODUCTION
Optimization; Emission
The energy generation from the conventional sources
NOMENCLATURE is leading to more environmental concerns. The energy
demand is rising and reserves of the natural sources are
MG Micro-grid confined which makes a faster evolution of renewable
RE Renewable Energy sources a top-priority [1]. Among the various Renewable
PV Photo voItaic Energy (RE) sourees, the wind and solar energy are
WT Wind Turbine rapidly developing technologies, because of their
DE Diesel Generator widespread availability [2]. But because of their inherent
MT Micro Turbine technical limitation of intennittency, they can't be used
FC Fuel cell alone [3]. Here is when the need of Distributed energy
BA Battery resources (DER) arises. The DERs or DGs include both
NPV Net Present Value generation sources and storage devices like batteries [4].
NCFE Net cost related to Fuel and Emissions, Micro-grids are low to medium voItage intelligent
EMS Energy Management Strategy distribution system containing various DER. It can operate
RPO Renewable Purehase Obligation either in grid connected or in Island mode. A micro-grid
OPS Optimal Power Schedule can be termed as a independent controlled body within the
CUF Capacity Utilization Factor power system, which can act as a load or as a small source
IC Initial Cost of energy [5]. Apart from having many advantages like
Iy Net Yearly revenues - expenses reducing transmission losses, less susceptible to power
n Number of DG sources consuming fuel outrage and reducing Green House Gas (GHG) emission
I 20%, interest rate [6-9], MG can also be economically and environmentally
P 15%, inflation rate viable. A weil planned commissioning and optimum

978-1-4673-8587-9/16/$31.00 ©2016 IEEE [1]

 1st IEEE International Conference on Power Electronics. Intelligent Control and Energy Systems (ICPEICES-2016)
operational strategy of a micro-grid can be very profitable
and at the same time can help in the mitigation of the GH
gases throughout its lifetime.
A wide range of methods have been utilized for the
optimization in the MG. In [10-11] Moradi et. al. and
Faisal et. al. presented the planning and optimal
operational management of the micro-grid using different
optimization techniques. Both of them realized a Net
Present Value (NPV) function to validate the economic
jurisdiction of their project throughout its Iifetime. The
former used a hybrid optimization method which
combines the quadratic programming (QP) and PSO to
determine the optimum capacity and operational strategy
of the MG. The later used the Mesh Adaptive Direct
Search (MADS) algorithm to do the same. A similar kind
of NPV approach is employed in [17] in which Moradi et.
al. considered a CHP plant to determine the optimal
capacities and operational strategy of a CHP and boiler
such that the thermal and electricity demand is satisfied
efficiently. He used a hybrid optimization technique
employing PSO and Linear Programming (LP) algorithm.
In [14], an environmental-economic dispatch algorithm is
used to reduce the fuel cost as weIl as atrnospheric
emissions such NOx and SOx. The reduction in fuel cost
and emission is achieved by including emission either as a
constraint of as a weighted function. In [15-16] Amjad et.
al. presented an operational management strategy of a
renewable energy micro-grid by using an expert muIti­
objective Adaptive Modified Particle Swarm Optimization
(AMPSO) and Fuzzy self Adaptive Particle Swarm
Optimization (FSAPSO) algorithm to find out the optimal
operational schedule considering cost and emissions. In
this paper, MINLP method is used for the optimization of
capacity and operation of the micro-grid (MG).
11. OBJECTIVES OF THE RESEARCH
The main objective of this research is to find out the
optimum capacity and strategic operation of various DG
sources in the micro-grid over its lifetime for which the
model gives a profitable return over its investment while
providing high quality and reliable electricity with
minimum emission to the environment. The NPV function
indicates the economic jurisdiction of the project
investment. A positive NPV indicated that the project is
profitable, while negative value indicates that project is in
loss. The project whose risks are reasonable and has a high
positive value are desired.
NPV= [1:p*L�=1aY*Iy] -IC
Where a is actualization rate which is given by:
1 Where Lc is the sensitive load at that particular hour
a= l+i-p
l+P
A. Problem Formulation
The objective function and the constraints that are
used for this micro-grid problem are discussed in this
section. The NPV function [10] that is needed to be
maximized is shown below:
{["N
NPV - MAX L..y=11aY
_ ("365 "24 ( 1
+p L..d=1 L..t=1 Dtdy * C tdy -
Fltdy + Vltdy) -F2y + V2y) -F3 ] } (3)
N: project lifetime, Dtdy: Load demand in jth year's dth
day's tth hour, Cltdy: the cost of electricity. The product of
load demand and the cost(Cl) represents the project revenue
over its lifetime from the sales of electricity.
1) EMS strategy
The Fl in the objective function represents the energy
management strategic function. It includes fuel costs,
Maintenance and Operation (M&O) cost, cost related to
grid exchange and the emission related to micro-grid
operation[10]. Renewable energy sources don't require
any fuel and are pollution free. Moreover, their M&O cost
is fixed and depends on its capacity so they are not
included in this function. For the optimum operation, Fl is
needed to be minimized.
Fl= Min{Cf(p) + Ce(p)} (4)
Clp) fuel cost function: This includes the expense
associated with the generation i.e. fuel cost, M&O cost,
cost of power purchase from the grid and sales of
electricity to the grid as negative term.
Cf(p) = {Lf=1(!i(P) + OMi(p) + SUi + SDi) +
Cpur * PpfG -Csold * Pstd (5)
hw)represents the fuel expenses and are computed by
equation (18)-(20) referring to [10].
OMiW) is M&O cost and is computed by equation 21
referring to[lO].
The coefficient of M&O and parameters for the fuel
consumption of Diesel Generator (DE) is taken[ll]. The
net electrical efficiency of fuel cell[12] is taken as
27.07%. While efficiency of MT[13] is taken as 37.5%.
CeW) pollution function: This function represents the
expense related to the environmental damage caused due
to fuel consumed in the MG operation. The cost related to
emission is given by equation (6)
Ce(p) = L�1Lf=1 Uei * Cei * Pi (6)
Where, Uei is coefficient of eth pollution source, Cei is
expense associated with eth pollution source for ith
generation source whose values are being used[lO].
Optimization Constraints applied to F1
Power Balance at each hour
L Pi + L Pres + a * Pbatt + PpfG -pStG = Dtdy (7)
(1) Reliability constraint for uninterrupted supply
L Pi + L Pres + Pbatt 2:: Lc (8)
(2)
to whom the uninterrupted power supply is ensured.
Other constraints are charging and discharging
constraints of battery taken from equation 7-10[11]. The
state of chare (SOC) limits are taken as 90% and 10% of
the rated battery capacity while the maximum rate of
charge/discharge each hour is assumed as 20%. The
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 1st IEEE International Conference on Power Electronics. Intelligent Control and Energy Systems (ICPEICES-2016)

Minimwn and Maximwn power generation limit of the

Utility
(GRID)

generation sources taken from equation 30 [10].

2) Maintenance cost(F2)
Feeder 3
Annual maintenance cost of the Renewable sources is
Load
a function of their capacity[lO] and is given by:
F2 = Lj � * Cj (9)
Load
Cj is capacity and K.J is annual M&O expenses per Load
KW of fh renewable source as specified in table 3[10].

3) Initial Investment(F3)
Fig. I: A Micro-grid Containing Various DG Sources and Load
The initial investment of any DG source is the
function of its capacity and is given by: 5000
F3 Li Cli * Ci (10)
� --sp
=

4000
Ci is capacity of the ith unit inc1uding renewables. Cli �
--su
.5 3000
is the coefficient of initial investment ($/kW). '0
'" --fa
0
-l 2000 --WI
4) Credits
1000
Credits related to pollution reduction(Vl): The extent
o 2 4 6 8 10 12 14 16 18 20 22 24
to which the power will be generated from the renewable
sources while replacing the conventional generation Fig. 2: Load Forecast Trends for Different Seasons
source will lead to reduction in the pollution and at the
same time will eliminate the penalty expense incurred by The Forecast trends of available power from wind
the grid. The model for the same is given in equation 34 turbine and the PV array is also shown in Fig. 3-4 in per
referring to [10]. unit(pu) form.
0.8 -r-----
Reliability(V2): When micro-grid is not utilized and
';
the interruption of power occurs, it can lead to losses .:- 0.6 --sp
"
0 --su
particularly the loss of sensitive load. The micro-grid can ...
0.4
" --fa
provide uninterrupted power supply to our sensitive load �
0 --wi
Q,
0.2
thereby ensuring a reliable operation. The reliability cost "
Q,
for the same can be taken as a credit in our NPV function 0
which is shown in equation o 2 4 6 8 10 12 14 16 18 20 22 24

V2 = [L{=lYi * ri * LCi + Y/lg * Lc] * Cll (11)

Where, Yi is failure rate of the feeder i. ri is time taken Fig. 3: Forecasted Power Output from WT in per Unit

to fix the feeder. Yug is probability that main grid is not

available. CIl is cost associated with interruption of critical 0.8 +--------__-__----
" --sp
_

load, $100/hr (assumed). Yi and Yug are asswned to be 1% .:-

g 0.6 --su
and ri is asswned as 5 hrs.
il --fa
p.4 +-----�'_7�_-..,_�+-- --WI
5) Constraint applied to NPV Q,
So 0.2 +-----4-Af1.�01!::.-
. ---=����-
Finally, a capacity optimization constraint is applied
to the main NPV objective as shown below:
o 2 4 6 8 10 12 14 16 18 20 22 24
Cimin � Ci � Ciman i 1 : n = (12)

III. MICROGRID DESIGN Fig. 4: Forecast Power Output from PV in per Unit

The typical micro-grid shown in this paper consist of The purchase and the selling price of the electricity is
various DG sources like PV array, Wind Turbine(WT), also shown in Table 1[10]. The price of diesel is assumed
Diesel Generator(DE), Micro-Turbine(WT), Fuel Cell(FC) to be $0.65/litre and price of fuels for MT & FC is
and storage device, typically battery and the load. Besides asswned to be $c 1.433/kWh.
that micro-grid is connected to main grid for the energy TABLE I: TARIFF RATES FOR GRID AND CONSUMER
exchange, but it can also operate autonomously Fig 1. In($/kWh) Purehase Sold Consumer
It is asswned to be operating at unity power factor. Low Load 0.02 0.014 0.03
The load curves for different seasons of the year are Medium Load 0.04 0.028 0.06
shown in Fig. 2. Peak Load 0.06 0.042 0.09

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 1st IEEE International Conference on Power Electronics. Intelligent Control and Energy Systems (ICPEICES-2016)

Also the load is taken to be in incremental manner, 6 1545 0 1486 0 0 0 0 3031

7 1635 0 1486 0 0 0 0 3120
increasing annually which is given by equation.
8 1895 0 1486 0 0 0 0 3381
Dy (1 + E)Y * Do
= (13) 9 2638 0 1486 0 0 0 0 4124
10 3752 0 1486 0 0 0 0 5238
IV. CASE STUDY 11 3863 0 1486 0 0 0 0 5349
12 3901 0 1486 0 0 0 0 5387
After formulating various equations and constraints, 13 3195 0 1486 0 0 0 0 4681
the problem statement is divided into various cases. 14 3120 0 1486 0 0 0 0 4606
1. In fIrst case, the MG is operating within its 15 2935 0 1486 0 0 0 0 4421
16 2675 0 1486 0 0 0 0 4161
normal constraints. Reliability constraint is 17 3232 0 1486 0 0 0 0 4718
applicable. Besides that, there is no limit on the 18 0 0 5000 1352 0 0 0 6352
purehase of power from the grid while the sale is 19 0 0 5000 1687 0 0 0 6687
subjected to availability. 20 0 0 5000 2021 0 0 0 7021
21 0 0 5000 1352 0 0 0 6352
2. In second case, 10% Renewable Purehase 22 4384 0 1486 0 0 0 0 5869
Obligation (RPO) is applied. So now the MG is 23 3269 0 1486 0 0 0 0 4755
bound to have 10% of renewable capacity out of 24 1486 0 1486 0 0 0 0 2972
total. The DG sources are bound to operate with a b
I 612 0 1020 0 0 0 0 1632
Capacity Utilization Factor (CUF) of more than
2 510 0 1020 0 0 0 0 1530
40%. The purehase of power should be less than 3 536 0 1020 0 0 0 0 1556
sensitive load at that hour and sale is limit to 20% 4 561 0 1020 0 0 0 0 1581
of MG generation. Reliability constraint is still 5 663 0 1020 0 0 0 0 1683
applicable as uninterrupted supply to the 6 714 0 1020 0 0 0 0 1734
7 740 0 1020 0 0 0 0 1760
sensitive load is ensured. 8 918 0 1020 0 0 0 0 1938
3. In third case, Renewable energy is utilized to its 9 1479 0 1020 0 0 0 0 2499
maximum capacity. CUF of 40 % and Reliability 10 2040 0 1020 0 0 0 0 3060
constraints are still applicable. The purehase limit 11 2244 0 1020 0 0 0 0 3264
12 2295 0 1020 0 0 0 0 3315
should be less than sensitive load at that hour and
13 1836 0 1020 0 0 0 0 2856
sale is limit to 30% of MG generation. 14 1785 0 1020 0 0 0 0 2805
15 1734 0 1020 0 0 0 0 2754
V. RESUL TS AND DISCUSSION 16 2193 0 1020 0 0 0 0 3213
17 2907 0 1020 0 0 0 0 3927
The proposed MINLP algorithm is then implemented 18 3111 0 1020 0 0 0 0 4131
to maximize NPV objective function which will detennine 19 2754 0 1020 0 0 0 0 3774
the optimum capacity and the operational strategy of 20 2295 0 1020 0 0 0 0 3315
21 1530 0 1020 0 0 0 0 2550
various DG sources in the MG. The maximum limit for
22 1734 0 1020 0 0 0 0 2754
the capacity for different cases is shown in Table 2. 23 1377 0 1020 0 0 0 0 2397
TABLE 2: MAx CAPACITY LIMIT (KW) FOR VARIOUS CASES 24 663 0 1020 0 0 0 0 1683

Case DE MT FC PV WT BA It is observed that as there is no RPO constraint,

1 5000 5000 5000 0 0 0 renewable energy capacities are not utilized. DE is not
2 5000 5000 5000 2000 2000 2000
used because of high fuel and environment related
3 10000 10000 10000 10000 10000 2000
expenses. MT being of higher efficiency as compared to
The capacities obtained after optimization are shown FC is utilized more. There is an unrestricted purehase of
in Table 4. The NPV and Net Cost related to Fuel and power from the grid which can be retlected in the resuIts.
Emission (NCFE)(see appendix I) are shown Fig 5-6.
TABLE 4: OPTIMUM CAPAClTlES (KW) FOR DIFFERENT
DGs OBTAINED FOR VARIOUS CASES
A. First Case
Case DE MT FC PV WT BA
The Optimal Power Schedule (OPS) for max NPV 1 0 5000 2429.74 0 0 0
operation is obtained for the fIrst case which is shown in 2 0 5000 459.891 828.988 0 2000
3 0 4961.59 0 5674.52 982.951 2000
Table 3.
TABLE 3: OPTIMUM POWER SCHEDULE (KWH) FOR CASE 1 A) A DAY IN 1350
SPRING YEAR 20,B) A DA Y IN WINTERS YEAR 1 1330
DG GRID DE MT FC PV WT BA LOAD 1310
Capacity -
0 5000 2429.7 0 0 0 -
1290 .NPY
a
1270
I 1449 0 1486 0 0 0 0 2935
1250
2 1226 0 1486 0 0 0 0 2712
3 1300 0 1486 0 0 0 0 2786 o
Cases
4 1375 0 1486 0 0 0 0 2860
5 1486 0 1486 0 0 0 0 2972 Fig. 5: Net Present Value für Different Cases

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 1st IEEE International Conference on Power Electronics Intelligent Control and Energy Systems (ICPEICES-2016)

12 1346 0 2695 460 307 0 -400 4408

16 Npt .. od rpl<>tp<l <0 ...... I .. n<l .. �;«;.
13 1346 0 1366 460 332 0 400 3903
c
14 14 1346 0 2098 460 332 0 -400 3836
� •
'e 15 1346 0 1130 460 332 0 400 3667
'" 12 16 1346 0 2224 460 307 0 -400 3937
.:: .NCFE 17 1346 0 3547 460 249 0 -386 5215
"-l 10
"" • 18 0 0 4591 460 182 0 386 5619
U
z
8 19 0 0 4811 460 83 0 400 5754
6 20 1346 0 3644 460 0 0 -133 5316
21 1346 0 2936 460 0 0 -267 4475
0 I 2 3
Cases 22 1346 0 1159 460 0 0 400 3365
23 1346 0 1959 460 0 0 -400 3365
Fig. 6: Net Cost Related to Fuel and Emission for Different Cases 24 1077 0 486 460 0 0 400 2423

B. Second Case C. Third Case

A 10% RPO is implemented. Sale of power to the The Renewable sources are being utilized to their
grid is restricted to 20% of total MG generation. The OPS maximum limit. The OPS corresponding to Max
for different days are shown in Table 5. Renewable Case is shown in Table 6.
It is observed in this case that DE is not deployed In this case, despite being a max capacity limit of
again because of same reason. Even after implementing 10000, the WT is only deployed upto 982.9 kW as
10% RPO limit, PV despite having a high initial compared to 5674.5 for PV. This is again due to low per
investment cost is only put to use and not WT. This is unit output power for the WT as compared to PV. An
because in PV the per unit output power is more as increase in limit for the sale upto 30% of generation can
compared to WT Fig. 3-4. The grid transfer is restricted as be seen in the OPS resuIts in the form of negative values
grid constraints are implemented. There is a slight in the grid column.
decreased in NPV due to introduction ofRE sources. TABLE 6: OPTIMUM POWER SCHEDULE (KWH) FOR CASE 3,A) A DA Y IN
SUMMER YEAR 1,B) A DAY IN SPRINGS YEAR 20
TABLE 5: OPTIMUM POWER SCHEDULE (KWH) FOR CASE 2,A) A DAY IN
SUMMER YEAR 1,B) A DA Y IN FALLS YEAR 15 DG GRID DE MT FC PV WT BA LOAD
Capacity - 0 4961.5 0 5674.5 982.9 2000 -
DG GRID DE MT FC PV WT BA LOAD
a
Capacity - 0 5000 459.8 828.9 0 2000 -
I 1020 0 754 0 98 372 2244
a
2 1020 0 983 0 88 0 2091
I 1020 0 1424 0 0 0 -200 2244
3 1020 0 1043 0 79 0 2142
2 1020 0 871 0 0 0 200 2091
4 1020 0 1104 0 69 0 2193
3 1020 0 1122 0 0 0 0 2142
5 1020 0 1565 0 59 -400 2244
4 1020 0 1173 0 0 0 0 2193
6 1020 0 290 0 511 49 400 2270
5 1020 0 1612 0 0 0 -388 2244
7 1020 0 101 0 1135 39 0 2295
6 1020 0 1575 0 75 0 -400 2270
8 1020 0 0 0 1816 29 -315 2550
7 1020 0 1509 0 166 0 -400 2295
9 460 0 0 0 2270 15 315 3060
8 1020 0 1665 0 265 0 -400 2550
10 420 0 0 0 3405 0 0 3825
9 1020 0 1308 0 332 0 400 3060
11 0 0 0 0 3972 0 -45 3927
10 1020 0 2320 0 497 0 -12 3825
12 -204 0 0 0 4086 0 45 3927
11 1020 0 1927 0 580 0 400 3927
13 -672 0 0 0 4540 0 -400 3468
12 1020 0 1910 0 597 0 400 3927
14 -723 0 0 0 4540 0 -400 3417
13 1020 0 1385 0 663 0 400 3468
15 -1295 0 0 0 4540 20 0 3264
14 1020 0 2134 0 663 0 -400 3417
16 -1068 0 0 0 4540 39 -400 3111
15 1020 0 1981 0 663 0 -400 3264
17 -481 0 0 0 4086 59 -400 3264
16 1020 0 1828 0 663 0 -400 3111
18 27 0 0 0 3688 59 0 3774
17 1020 0 2047 0 597 0 -400 3264
19 -1967 0 3562 0 2951 44 0 4590
18 1020 0 2215 0 539 0 0 3774
20 -1794 0 4962 0 1248 29 400 4845
19 0 0 3759 0 431 0 400 4590
21 -844 0 4962 0 567 15 400 5100
20 0 0 4446 0 182 0 216 4845
22 -777 0 4962 0 0 5 400 4590
21 0 0 4833 0 83 0 184 5100
23 -1331 0 4962 0 0 49 400 4080
22 0 0 4190 0 0 0 400 4590
24 1020 0 1177 0 0 98 0 2295
23 0 0 3680 0 0 0 400 4080
b
24 1020 0 1275 0 0 0 0 2295
I 1449 0 1689 0 0 197 -400 2935
b
2 1226 0 1114 0 0 172 200 2712
I 1009 0 919 460 0 0 -33 2355
3 1300 0 1339 0 0 147 0 2786
2 808 0 686 460 0 0 200 2153
4 1375 0 1763 0 0 123 -400 2860
3 875 0 1286 460 0 0 -400 2221
5 1486 0 1783 0 0 103 -400 2972
4 942 0 486 460 0 0 400 2288
6 0 0 2378 0 170 84 400 3031
5 1043 0 886 460 0 0 0 2389
7 0 0 2381 0 681 59 0 3120
6 1097 0 1286 460 0 0 -400 2443
8 0 0 1796 0 1135 49 400 3381
7 1178 0 71 460 414 0 400 2524
9 0 0 3080 0 1419 25 -400 4124
8 1346 0 1162 460 124 0 -400 2692
10 0 0 2738 0 2100 0 400 5238
9 1346 0 1044 460 182 0 400 3432
11 0 0 3366 0 2383 0 -400 5349
10 1346 0 2745 460 257 0 -400 4408
Table 6 (Contd.) ...
11 1346 0 1912 460 290 0 400 4408

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 1st IEEE International Conference on Power Electronics, Intelligent Control and Energy Systems (ICPEICES-2016)

... Table 6 (Contd. REFERENCES

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positive in all the cases justify that the overall investments
on the MG are profitable.
VI. CONCLUSION
The above research manifests that the alternate energy
sources are feasible solution to the ever growing energy
demand and the rise in pollution levels of the world. With
the use of Micro-grid and distributed generation sourees,
the intermittency barrier of the renewable sources can also
be cut short. A weil planned and optimally operated
micro-grid can turn out to a beneficial investment and can
provide high quality and reliable electricity to the
consumer while curbing the pollution at the same time.
ApPENDIX!
The Net cost related to Fuel and Emissions (NCFE) is
the Net present value of the EMS strategie function Fl.
The formula for the NCFE is given below:
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