Optimal sizing of the energy storage system through cost minimization in a microgrid using demand response techniques

Abstract

Employment of Energy Storage Systems (ESS) in microgrids has become important as it enhances the overall performance of microgrids. With the improvement in the technologies associated with power system optimization, developing an exact model to identify the optimal size of ESS, which brings the maximum benefits to the microgrid with the least cost has become a major research area. In this research, the optimization of ESS in a selected microgrid is carried out under the implementation of a Demand Response (DR) program. The main aim of this research is to determine the optimal size of ESS that minimizes the investment cost and maintenance cost of ESS, together with the operating cost within microgrid. Due to the uncertain nature of the load and PV generation, a stochastic model was employed to predict those parameters accurately. Dynamic Programming (DP) is used to model the optimization problem in GAMS optimization software. Two cases were studied to evaluate the effectiveness of the proposed methodology, and the results highlight that the implementation of Demand Response Program leads to a curtailment in the size of Energy Storage System and a reasonable reduction in the total cost in the microgrid.