An Optimal Operation of Prosumer Microgrid Considering Demand Response Strategies and Battery Life

Abstract

Existing energy supply systems are facing many problems such as increasing energy prices, depletion of fossil fuels and greenhouse gas (GHG) emissions. These problems seriously affect all the stakeholders of power systems such as customers/prosumers, utility and microgrid operators. Such issues can be resolved by renewable energy integration and various energy management strategies like demand response (DR), demand-side management (DSM), etc. Among various consumers, campus microgrids are one of the major energy consumers facing high energy costs. This paper proposes a novel energy management system (EMS) for an institutional campus having onsite PV and ESS in grid exchange environment using a nonlinear mathematical model which also considers degradation cost of ESS and DR. The proposed EMS not only reduces the energy consumption cost by extending storage life but also ensures grid stability by curtailing and shifting the loads through incentive-based and price-based DR schemes. ESS is used as a stationary energy reserve which ensures stable operation of microgrid and also supports the grid network in case of contingencies. The proposed model is solved using a quadratic programming technique in MATLAB.  Results show that the proposed EMS reduces the operational cost of the prosumer by increasing its self-consumption, reduces its peak load demand from the grid network and will be enticing the campus owners and energy managers to invest in distributed generation (DG) and large-scale ESS installations.