A Robust Model for Portfolio Management of Microgrid Operator in the Balancing Market
The stochastic nature of renewable energy resources and consumption has the potential to threaten the balance between generation and consumption as well as to cause instability in power systems. The microgrid operators (MGOs) are financially responsible for compensating for the imbalance of power wi...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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MDPI AG
2023-02-01
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| Series: | Energies |
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| Online Access: | https://www.mdpi.com/1996-1073/16/4/1700 |
| _version_ | 1827757710394785792 |
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| author | Meysam Khojasteh Pedro Faria Fernando Lezama Zita Vale |
| author_facet | Meysam Khojasteh Pedro Faria Fernando Lezama Zita Vale |
| author_sort | Meysam Khojasteh |
| collection | DOAJ |
| description | The stochastic nature of renewable energy resources and consumption has the potential to threaten the balance between generation and consumption as well as to cause instability in power systems. The microgrid operators (MGOs) are financially responsible for compensating for the imbalance of power within their portfolio. The imbalance of power can be supplied by rescheduling flexible resources or participating in the balancing market. This paper presents a robust optimization (RO)-based model to maintain the balance of a portfolio according to uncertainties in renewable power generation and consumption. Furthermore, load reduction (LR) and battery energy storage (BES) are considered flexible resources of the MGO on the consumption side. The model is formulated based on the minimax decision rule that determines the minimum cost of balancing based on the worst-case realizations of uncertain parameters. Through the strong duality theory and big-M theory, the proposed minimax model is transformed into a single-level linear maximization problem. The proposed model is tested on a six-node microgrid test system. The main contributions of the proposed model are presenting a robust model for portfolio management of MGO and using BES and LR to improve the flexibility of microgrid. Simulation results demonstrate that using LR and BES could decrease the balancing cost. However, the optimal portfolio management to compensate for the imbalance of power is highly dependent on the risk preferences of MGO. |
| first_indexed | 2024-03-11T08:54:07Z |
| format | Article |
| id | doaj.art-ab536f9087a34a6c859442c53a85d3b2 |
| institution | Directory Open Access Journal |
| issn | 1996-1073 |
| language | English |
| last_indexed | 2024-03-11T08:54:07Z |
| publishDate | 2023-02-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Energies |
| spelling | doaj.art-ab536f9087a34a6c859442c53a85d3b22023-11-16T20:16:33ZengMDPI AGEnergies1996-10732023-02-01164170010.3390/en16041700A Robust Model for Portfolio Management of Microgrid Operator in the Balancing MarketMeysam Khojasteh0Pedro Faria1Fernando Lezama2Zita Vale3GECAD—Research Group on Intelligent Engineering and Computing for Advanced Innovation and Development, LASI—Intelligent Systems Associate Laboratory, Polytechnic of Porto, 4200-072 Porto, PortugalGECAD—Research Group on Intelligent Engineering and Computing for Advanced Innovation and Development, LASI—Intelligent Systems Associate Laboratory, Polytechnic of Porto, 4200-072 Porto, PortugalGECAD—Research Group on Intelligent Engineering and Computing for Advanced Innovation and Development, LASI—Intelligent Systems Associate Laboratory, Polytechnic of Porto, 4200-072 Porto, PortugalGECAD—Research Group on Intelligent Engineering and Computing for Advanced Innovation and Development, LASI—Intelligent Systems Associate Laboratory, Polytechnic of Porto, 4200-072 Porto, PortugalThe stochastic nature of renewable energy resources and consumption has the potential to threaten the balance between generation and consumption as well as to cause instability in power systems. The microgrid operators (MGOs) are financially responsible for compensating for the imbalance of power within their portfolio. The imbalance of power can be supplied by rescheduling flexible resources or participating in the balancing market. This paper presents a robust optimization (RO)-based model to maintain the balance of a portfolio according to uncertainties in renewable power generation and consumption. Furthermore, load reduction (LR) and battery energy storage (BES) are considered flexible resources of the MGO on the consumption side. The model is formulated based on the minimax decision rule that determines the minimum cost of balancing based on the worst-case realizations of uncertain parameters. Through the strong duality theory and big-M theory, the proposed minimax model is transformed into a single-level linear maximization problem. The proposed model is tested on a six-node microgrid test system. The main contributions of the proposed model are presenting a robust model for portfolio management of MGO and using BES and LR to improve the flexibility of microgrid. Simulation results demonstrate that using LR and BES could decrease the balancing cost. However, the optimal portfolio management to compensate for the imbalance of power is highly dependent on the risk preferences of MGO.https://www.mdpi.com/1996-1073/16/4/1700battery energy storageload reductionmicrogrid operatorrobust optimizationuncertainty |
| spellingShingle | Meysam Khojasteh Pedro Faria Fernando Lezama Zita Vale A Robust Model for Portfolio Management of Microgrid Operator in the Balancing Market Energies battery energy storage load reduction microgrid operator robust optimization uncertainty |
| title | A Robust Model for Portfolio Management of Microgrid Operator in the Balancing Market |
| title_full | A Robust Model for Portfolio Management of Microgrid Operator in the Balancing Market |
| title_fullStr | A Robust Model for Portfolio Management of Microgrid Operator in the Balancing Market |
| title_full_unstemmed | A Robust Model for Portfolio Management of Microgrid Operator in the Balancing Market |
| title_short | A Robust Model for Portfolio Management of Microgrid Operator in the Balancing Market |
| title_sort | robust model for portfolio management of microgrid operator in the balancing market |
| topic | battery energy storage load reduction microgrid operator robust optimization uncertainty |
| url | https://www.mdpi.com/1996-1073/16/4/1700 |
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