Economic analysis and optimal energy management models for microgrid systems: A case study in Taiwan

► An optimization model of energy supply in microgrid system is formulated. ► Optimal energy management strategies are determined. ► Sensitivity analyses of storage capacity and energy demand is performed. The purpose of this research is to perform economic analysis, formulate an optimization model,...

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Published inApplied energy Vol. 103; pp. 145 - 154
Main Authors Chen, Yen-Haw, Lu, Su-Ying, Chang, Yung-Ruei, Lee, Ta-Tung, Hu, Ming-Che
Format Journal Article
LanguageEnglish
Published Kidlington Elsevier Ltd 01.03.2013
Elsevier
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Abstract ► An optimization model of energy supply in microgrid system is formulated. ► Optimal energy management strategies are determined. ► Sensitivity analyses of storage capacity and energy demand is performed. The purpose of this research is to perform economic analysis, formulate an optimization model, and determine optimal operating strategies for smart microgrid systems. Microgrid systems are electricity supply systems that integrate distributed renewable energy production for local demand. Microgrids are able to reduce transmission losses and improve utilization efficiency of electricity and heat. Further, greenhouse gas emissions are reduced by utilizing an efficient power generation microgrid system. This study presents an energy management model that is used to determine optimal operating strategies with maximum profit for a microgrid system in Taiwan. The smart microgrid system is equipped with energy storage devices, photovoltaic power, and wind power generation systems. Sensitivity analyses of investment in storage capacity and growth in electricity demand are conducted for the smart microgrid model. The results show that appropriate battery capacity should be determined on the basis of both battery efficiency and power supply.
AbstractList The purpose of this research is to perform economic analysis, formulate an optimization model, and determine optimal operating strategies for smart microgrid systems. Microgrid systems are electricity supply systems that integrate distributed renewable energy production for local demand. Microgrids are able to reduce transmission losses and improve utilization efficiency of electricity and heat. Further, greenhouse gas emissions are reduced by utilizing an efficient power generation microgrid system. This study presents an energy management model that is used to determine optimal operating strategies with maximum profit for a microgrid system in Taiwan. The smart microgrid system is equipped with energy storage devices, photovoltaic power, and wind power generation systems. Sensitivity analyses of investment in storage capacity and growth in electricity demand are conducted for the smart microgrid model. The results show that appropriate battery capacity should be determined on the basis of both battery efficiency and power supply.
► An optimization model of energy supply in microgrid system is formulated. ► Optimal energy management strategies are determined. ► Sensitivity analyses of storage capacity and energy demand is performed. The purpose of this research is to perform economic analysis, formulate an optimization model, and determine optimal operating strategies for smart microgrid systems. Microgrid systems are electricity supply systems that integrate distributed renewable energy production for local demand. Microgrids are able to reduce transmission losses and improve utilization efficiency of electricity and heat. Further, greenhouse gas emissions are reduced by utilizing an efficient power generation microgrid system. This study presents an energy management model that is used to determine optimal operating strategies with maximum profit for a microgrid system in Taiwan. The smart microgrid system is equipped with energy storage devices, photovoltaic power, and wind power generation systems. Sensitivity analyses of investment in storage capacity and growth in electricity demand are conducted for the smart microgrid model. The results show that appropriate battery capacity should be determined on the basis of both battery efficiency and power supply.
Author Hu, Ming-Che
Lu, Su-Ying
Chang, Yung-Ruei
Chen, Yen-Haw
Lee, Ta-Tung
Author_xml – sequence: 1
  givenname: Yen-Haw
  surname: Chen
  fullname: Chen, Yen-Haw
  organization: Taiwan Institute of Economic Research, Research Division 1, 7F, No. 16-8 Dehuei Street, Jhongshan District, Taipei 104, Taiwan
– sequence: 2
  givenname: Su-Ying
  surname: Lu
  fullname: Lu, Su-Ying
  organization: Taiwan Institute of Economic Research, Research Division 1, 7F, No. 16-8 Dehuei Street, Jhongshan District, Taipei 104, Taiwan
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  givenname: Yung-Ruei
  surname: Chang
  fullname: Chang, Yung-Ruei
  organization: Institute of Nuclear Energy Research, Atomic Energy Council, Taiwan, No. 1000, Wenhua Rd., Jiaan Village, Longtan Township, Taoyuan County 32546, Taiwan
– sequence: 4
  givenname: Ta-Tung
  surname: Lee
  fullname: Lee, Ta-Tung
  organization: Department of Bioenvironmental Systems Engineering, National Taiwan University, No. 1, Sec. 4, Roosevelt Road, Taipei 10617, Taiwan
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  givenname: Ming-Che
  surname: Hu
  fullname: Hu, Ming-Che
  email: mchu@ntu.edu.tw
  organization: Department of Bioenvironmental Systems Engineering, National Taiwan University, No. 1, Sec. 4, Roosevelt Road, Taipei 10617, Taiwan
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Keywords Microgrid
Optimization
Sensitivity analysis
Multicriteria analysis
Small scale
Economic optimization
Smart grid
Case study
Optimal strategy
Wind energy
Electricity
Supply demand balance
Storage capacity
Solar energy
Technicoeconomic study
Production capacity
Photovoltaic generator
Energy management
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  start-page: 211
  year: 1992
  ident: 10.1016/j.apenergy.2012.09.023_b0215
  article-title: Contract networks for electric power transmission
  publication-title: J Regul Econ
  doi: 10.1007/BF00133621
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Snippet ► An optimization model of energy supply in microgrid system is formulated. ► Optimal energy management strategies are determined. ► Sensitivity analyses of...
The purpose of this research is to perform economic analysis, formulate an optimization model, and determine optimal operating strategies for smart microgrid...
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SubjectTerms Applied sciences
batteries
case studies
economic analysis
Economic data
efficiency
Electric energy
electricity
Energy
Energy economics
Exact sciences and technology
General, economic and professional studies
greenhouse gas emissions
heat
Microgrid
Natural energy
Optimization
power generation
renewable energy
Sensitivity analysis
strategies
systems
Taiwan
wind power
Title Economic analysis and optimal energy management models for microgrid systems: A case study in Taiwan
URI https://dx.doi.org/10.1016/j.apenergy.2012.09.023
https://www.proquest.com/docview/1500795149
https://www.proquest.com/docview/2000018354
Volume 103
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