Optimal Energy Management of Microgrid Systems in Taiwan

Yen-Haw Chen a, Yen-Hong Chen a, Ming-Che Hu b,*

AbstractThis research examines optimal

CPBM generation capacity of biomass power [kW] CPGT generation capacity of gas turbine power [kW] CPFC generation capacity of fuel cell power [kW] DMtELE [kW] DMtHEAT heat demand per hour at time t [J] ERBM CO2 emission rate from biomass electricity generation [kg/kWh] ERGT CO2 emission rate from gas turbine electricity generation [kg/kWh] ERFC CO2 emission rate from fuel cell electricity generation [kg/kWh] FRBM biomass needed for biomass electricity [kg/kWh] FRGT gas needed for gas turbine electricity [m3/kWh] FRFC hydrogen needed for fuel cell electricity [m3/kWh] VCPV variable cost of solar power generation [$/kWh] VCWD VCBM variable cost of wind power electricity demand per hour at time t

operation of microgrid systems. disaggregated from main

Microgrids are grid.

transmission

Microgrids are able to integrate distributed renewable energy, take advantage of waste heat, provide higher power reliability, reduce electricity transmission loss, and decrease greenhouse gas emissions. The study considers solar power, wind power, biomass power, gas turbine, fuel cell generators, power storage, heat storage device, electricity demand, and heat demand in microgrid system. In the paper, an optimization model of

the microgrid system is proposed and the optimal operating strategy of the system is presented. A

case study of optimization model is analyzed in a microgrid system by Institute of Nuclear Energy Research (INER) in Taiwan. Additionally, the

impact of power demand and battery capacity in microgrid system is measured.

Keyword: microgrid, renewable energy, emission reduction, optimization

I. t

Nomenclature time period, t =1, 2,,T hours per block [hour]

Indices Parameter BKt CPPV generation capacity of photo voltage power [kW] CPWD generation capacity of wind power [kW]

generation [$/kWh] variable cost of biomass power generation [$/kWh] VCGT variable cost of gas turbine power generation [$/kWh] VCFC variable cost of fuel cell power generation [$/kWh]

978-1-61284-220-2/11/$26.00 2011 IEEE

HRBM

combine heat production of biomass

t [kg] etFC [kg] z total cost [$] CO2 generated by fuel cell at time t

power generator [J/kW] HRGT combine heat production of gas turbine power generator [J/kW] Variable nGT n
FC

number of gas turbines in microgrids number of fuel cells in microgrids electricity generated by photo

II.

Introduction
Microgrids are stand-alone from the power main separated

[dimensionless] [dimensionless] xtPV xtWD xtBM xtGT xtFC xtBT [kW] xtBTI [kW] xtBTO xtHS [J] xtHSI [J] xtHSO heat output per hour from heat storage at time t [J] ytBM [kg] ytGT ytFC [m3] etBM [kg] etGT CO2 generated by gas turbine at time CO2 generated by biomass at time t gas used by gas turbine at time t [m3] hydrogen used by fuel cell at time t biomass used by biomass at time t heat input of heat storage at time t electricity output of battery at time t [kW] heat stored in heat storage at time t electricity input of battery at time t voltage per hour at time t [kW] electricity generated by wind power electricity generated by biomass per electricity generated by gas turbine electricity generated by fuel cell per electricity stored in battery at time t per hour at time t [kW] hour at time t [kW] per hour at time t [kW] hour at time t [kW]

subsystems

transmission grid. The power subsystems are designed for small communities and they produce electric power themselves to meet the demand. Microgrids are proposed to provide energy locally and integrate distributed power generators and local renewable energy including wind, hydro, solar power, fuel cell and bioenergy. Three microgrid systems are built and tested in Japan by the New Energy Industrial Technology Development Organization (NEDO) [1]-[3]. The microgrid systems contain combined heat and power, gas engines, batteries, thermal storage tanks. UK examines a microgrid model including wing power, solar power, combined heat and power, boiler generating units, electricity storage, and thermal storage facilities to meet hospitals, hotels, and leisure centers power demand [4]. Without long distance transmission, microgrids of community level provide more stable power supply and higher reliability than the national power grid. In main electricity However, still incurs grid, high voltage power transmission is used to reduce power transmission loss. electricity transmission loss

approximately 4% of total production cost [5]. Microgrid system generates power locally to meet regional demand which is able to reduce transmission loss and provide high transmission

efficiency. of waste

Microgrids are able to improve heat gas produced emissions from electricity by

capacity is renewable energy. per kWh in Taiwan.

The buyback

energy utilization efficiency by taking advantage generation. greenhouse Additionally, microgrids make reduction

price for renewable electricity is around 10 NTD The scheduled wind power capacity is 2,000 MW in 2020 and the possible renewable energy capacity is 4,000 MW in 2020 [8]. The contribution of this paper is to establish a framework to analyze optimal operation of microgrid system in Taiwan. The framework contains an optimization model which maximizes total profit of microgrid system. A case study in Taiwan is conducted. Renewable power production and demand of the microgrid system is measured and examined based on this framework. organized as follows. literature review. This paper is Section 2 makes Accordingly, a

providing higher power utilization efficiency and avoiding unnecessary transmission loss. This paper formulates an optimization model to analyze microgrid system. This microgrid mathematical programming model is formulated as a linear programming model. In the research, the microgrid mathematical programming model is established on General Algebraic Modeling System (GAMS) platform and solved by CPLEX solver. GAMS is a modeling system designed for formulating, solving, and analyzing optimization problems. GAMS is a algebraic language which is useful to complex and large size problems [6]. CPLEX is linear programming problem solver with one of the most efficient algorithm. The model simulates the supply of renewable energy including solar and wind power generators and the power demand of a single house. platform and CPLEX solver. A case study of Institute of Nuclear Energy Researchs (INERs) microgrid system in Taiwan is tested and analyzed. reduce more Microgrid system is gas emission. expected to provide higher renewable energy and greenhouse Currently, the power market in Taiwan is dominated by a single state-owned utility company Taipoweralong with eight independent power providers (IPPs). The total installed capacity is 38,346 MW that serves an annual demand of approximately 230,000 MW [7]. Approximately, 5% of the total installed A

The optimization model is

formulated in the Section 3.

case study is conducted and the results of the microgrid model are showed in the Section 4. The discussion and conclusion are in the Section5. III. Literature Review This section reviews previous studies including establishment of microgrid system and mathematical model of microgrid system. The following studies introduce field tests of microgrid system in Japan and UK. Asano and Bando [1]-[3] present an economic analysis for microgrids field test in Japan. The New Energy Industrial Technology Development Organization (NEDO) of Japan field tests three regional power grids with generation resources in 2005. In the demonstration of microgrids, combined heat and power, gas engines, batteries, thermal storage tanks are included. In the paper, system configuration and operation

maximal profit of microgrid is sought by GAMS

strategies are determined. microgrid system.

The results show

generation technologies and the barriers that microgrids have to overcome. Compared with previous studies, the contribution of our study is to formulate an optimization model of microgrid system. Also, this paper presents a framework for finding optimal operating strategy in microgrid system (see Section 3). Additionally, the framework is tested and demonstrated by an INER microgrid in Taiwan (in Section 4). IV. Model The optimization model of the microgrid system seeks the minimal total cost. Total cost of the microgrid system is represented by z and introduced in the following. The variable costs of solar, wind, biomass, gas turbine, and fuel cell power generation are VCPV, VCWD, VCBM, VCGT, and VCFC in $/MWh. Notice that resource cost are included in variable cost, including biomass feedstock, natural gas, and hydrogen cost. Given time period can be different at each time, the model assumes BKt is number of hours at time period t. The power productions are xtPV, xtWD, xtBM, xtGT, and xtFC in MW at time t, respectively. The optimization in the model obtains optimal by operation microgrid system

economic incentive and supply reliability of Hawkes and Leach [4] investigates system design and unit commitment in microgrids. This linear programming model minimizes total cost including fuel, maintenance cost, and annualized capital cost. In this UK microgrid model, wing power, solar photovoltaic power, combined heat and power, boiler generating units, electricity storage, and thermal storage facilities are considered to supply demand in a hospital, a hotel, and a leisure center. In the result, this study shows optimal capacity investment and operating schedule of each generating units in microgrids. The following studies test microgrid system and analyze the advantages of the system. Lasseter and Piagi [9] addressed distributed power generating facilities make economic and environmental efficiency improvement recently; distributed generation becomes good solutions to provide electricity. demands. Microgrids are subsystems combining distributed generators and associate By islanding local generation and Additionally, demand, microgrid subsystems offer better reliability in electricity supply. waste heat is able to be exploited efficiently by locating heat generating sources near local demand. Abu-Sharkh et al. [10] discussed the Microgrid systems which are more reliable and efficient than traditional centralized generating facilities become an alternative energy supply system in recent years. Microgrids produce electric power on site, bringing high energy use efficiency and great integration of renewable energy sources. This research also investigated

maximizing total profit.

In Eq. (1), the total

profit contains generation cost terms of solar power (VCPVBKtxtPV), wind power (VCWD BKt xtWD), biomass power (VCBM BKt xtBM), gas turbine power (VCGT BKt xtGT), and fuel cell power (VCFCBKtxtFC). The total cost of the microgrid system is computed in Eq. (1). Min z = t=1T[(VCPVBKtxtPV)+(VCWD (1)

BKtxtWD)+(VCBMBKtxtBM) +(VCGTBKtxtGT) +(VCFCBKtxtFC)

The constraints of the model are discussed in the following. The generation capacities of solar power, wind power, biomass power, gas turbine, and fuel cell generators are CP , CP n
GT PV WD

To investigate greenhouse gas emission of microgrid system, CO2 emission rate from biomass electricity generation is represented by ERBM in kg/kWh, CO2 emission rate from gas turbine electricity generation is represented by ERGT in kg/kWh, and CO2 emission rate from fuel cell electricity generation is represented by ERFC in kg/kWh. generators. etBM, etGT, etFC are denoted by CO2 emission of biomass, gas turbine, fuel cell Eqs. (14)-(16) compute CO2 emission of biomass, gas turbine, fuel cell generators. Binary constraints and nonnegative constraints for decision variables are listed in Eq. (17) and Eq. (18). Subject to xtPV CPPV xtWD xtGT CP
GT WD

CPBM, CPGT, and CPFC in MW, respectively. and n

FC

are number of gas turbines and

number of fuel cells the decision maker decides to invest in microgrid system, respectively. The power generation capacity constraints are imposed for solar, wind, biomass, gas turbine, and fuel cell power in Eqs. (2)-(6), respectively. xtBTIis the power input and xtHSO xtBTO is power output of battery. On the other hand, xtHSIis the heat input and is heat output of heat storage device. In Eq. (7) and Eq. (8), current energy storage is equal to previous storage plus input minus output in storage devices. electricity storage at time t+1, (8). Electricity and heat energy balance constraints are established in Eq. (9) and Eq. (10). On the demand side, the model assumes DMtELE is electricity demand per hour at time t
BM

Then

t t t
GT

(2) (3) (4) (5) (6) (7) (8) = (9) (10) (11) (12) (13) (14) (15) (16) (17)

xt+1BT,

is updated

by Eq. (7) and heat storage is described in Eq.

xtBM CPBM n CP n CP =
FC

t t t t t t = (ytBM) t t t t t t = = = = (ytGT) (ytFC) (etBM) (etGT) (etFC)

xtFC

FC

xt+1BT

xtBT+xtBTI-xtBTO

xt+1HS = xtHS+xtHSI-xtHSO DMtELE HR

BM

xtPV+xtWD+xtBM+xtGT+xtFC-xtBTI+xtBTO

and the unit is kW. DMtHEAT is heat demand per hour at time t and the unit is Joule. HR and HRGT are combined heat production ratio of biomass and gas turbine generators; the unit is J/kW. Energy demand is met by energy generation and storage sources in Eq. (9) and Eq. (10). Fuel for biomass, gas turbine, and fuel cell generators are calculated in Eqs. (11)-(13), respectively. Biomass feedstock demand for
BM

(xtBM)+HRGT (xtGT)-(xtHSI)+(xtHSO)

= DMtHEAT FR FR FR
BM GT FC

BKt(xtBM)

BKt(xtGT)

BKt(xtFC) BKt(xtGT)
FC

ER

BM GT FC

BKt(xtBM)

ER

ER

BKt(xtFC) = {0, 1}

biomass electricity is denoted by FR

in

n ,n

GT

kg/kWh, gas demand for gas turbine electricity is denoted by FRGT in m3/kWh, and hydrogen demand for fuel cell electricity is denoted by FR
FC

xtPV, xtWD, xtBM, xtGT, xtFC 0 t xtBT, xtBTI, xtBTO, xtHS, xtHSI, xtHSO 0 t ytBM, ytGT, ytFC, etBM, etGT, etFC 0

in m /kWh.

(18)

each scenario, utilization of battery is examined including average battery storage (over 24 hours), total input of battery, total output of battery, and the battery efficiency (=total output/ battery capacity). Moreover, power trading The results of power between the microgrid system and the main grid system is investigated. sell, purchase, total demand, and total profit of trading are illustrated in Tables 1-3(appendix 1). Table 1 show the demand increase decreases profit from 1,742.0 NTD (New Taiwan Dollar) to -1,376.6 NTD in no battery scenario (Scenario 1). 10 kW battery scenario (Scenario 2) demonstrates that the increase of demand lowers 1746.8 NTD of basic case to 202.1 NTD of double demand and -1,372.2 NTD of triple demand in Table 2. Also, 20 kW battery scenario (Scenario 3) shows the increase of demand decreases the profit from 1,749.0 NTD to -1,367.8 NTD in Table 3. purchase cost from main grid. Table 2 shows that 10 kW battery scenario has highest battery efficiency of 299.7% in basic demand case and lowest rate of 200.0% in triple demand case. However, in 20 kW battery scenario, the battery efficiency increases from 179.2% to 200.0% when demand increases. Table 2 shows that low demand provides higher battery efficiency (299.7% for Case 1) than higher demand cases (203.2% for Cases 2 and 200.0% for 3) here. Case 1 with low demand in hour 13-24 doesnt need to fill up whole battery at hour 12. Hence, basic demand case (Case 1) of 20 kW battery scenario has only 179.2% battery efficiency (see Table 3). The additional cost comes from the increase of demand and the

The optimization model of microgrid system is an integer programming model. The model is formulated on GAMS system and solved by CPLEX solver. Section 4. V. Case Study and Results This section presents a case study and discusses the results of the microgrid system. First, a case study of microgrid system in Taiwan is introduced. Then the microgrid system is A investigated and the results are discussed. The optimization model is then used to perform a case study in

microgrid system of renewable energy is built by Institute of Nuclear Energy Research (INER) in Taiwan and the case study is analyzed in this research. The supply side of the microgrid system includes a solar power system of 100 kW High Concentration PhotoVoltaic (HCPV), a 25 kW wind power generator, a 150 kW wind power generator, 2 kW fuel cell generators, and a 10 kWh electricity storage battery. The demand side of the system includes a house and two office building with Direct Current (DC) electricity demand.1 This section begins by simulating the impact of increasing demand in no battery scenario (Scenario 1), 10 kW battery scenario (Scenario 2), and 20 kW battery scenario (Scenario 3) in the microgrid system. Assume electric power demand increases from basic demand (Case 1) to double demand (Case 2) and triple demand (Case 3) in each scenario.
1

In

Since photovoltaic solar power generates DC power, this research considers DC demand rather than Alternating Current (AC) to reduce conversion loss between DC and AC.

VI.

Conclusions

This paper formulates an optimization for microgrid system. minimal cost. The model is able to find optimal power operation in microgrid with This research examines the impact of power demand and power storage device in microgrid system. The results demonstrate low demand shrinks the profit. In term of the usage of battery, low demand provides more extra power to charge battery which yields high battery efficiency. In contrast, the case with lower demand might need less power than high demand cases and then the battery efficiency could be lower in this situation. In conclusion, high profit is achieved for high demand scenario and low profit is gained for low demand scenario. The appropriate battery size should be determined by both battery efficiency and power supply situation. By fixing demand, small battery capacity results low profit but high battery efficiency. Alternatively, high profit of energy sale is VII. Appendix

obtained with low battery efficiency for large battery capacity case. Hence, it concludes that batteries of appropriate size are better than batteries with undersize or oversize. Microgrid is a power supply subsystem. Microgrid system is capable of integrating renewable energy and local supply demand. Microgrid provides higher energy utilization efficiency by lower transmission loss and exploiting waste heat. Additionally, microgrid reduces greenhouse gas emission because of high power generation efficiency. The paper analyzes the optimal operation of microgrid. Further studies include energy policy simulation in microgrid system, economic and environmental impact of microgrid system, renewable power generation under uncertainty in microgrid, and multiobjective analysis for microgrid system.

Table 1 Results of no battery scenario (Scenario 1) in the microgrid

Battery Average Case storage (kWh) Total input (kWh) Total output (kWh) Efficiency (=output/capacity) (%) Total sell (kWh)

Power trading Total purchase (kWh) Total demand (kWh) 493.6 Total profit (NTD) 1742.0

Basic 0.0 0.0 0.0 643.6 58.6 demand (Case 1) Double 0.0 demand 0.0 0.0 439.2 347.8 (Case 2) Triple 0.0 0.0 0.0 371.3 773.4 demand (Case 3) The generation of solar power and wind power are 210 and 869 kWh, respectively.

987.1

197.7

1480.7

-1376.6

Table 2 Results of 10kW battery (Scenario 2) scenario in the microgrid

Battery Average Case storage (kWh) Total input (kWh) 30.0 20.3 20.0 Total output (kWh) 30.0 20.3 20.0 Efficiency (=output/capacity) (%) 299.7% 203.2% 200.0% Total sell (kWh) 621.4 419.2 351.3

Power trading Total purchase (kWh) 36.4 327.8 753.4 Total demand (kWh) 493.6 987.1 1480.7 Total profit (NTD) 1746.8 202.1 -1372.2

Ba sic demand 2.0 (Case 1) Double demand 5.0 (Case 2) Triple demand 3.8 (Case 3) The gene ration of solar

power and wind power are 210 and 869 kWh, respectively.

Table 3 Results of 20kW battery (Scenario 3) scenario in the microgrid

Battery Average Case storage (kWh) Total input (kWh) 35.8 40.3 40.0 Total output (kWh) 35.8 40.3 40.0 Efficiency (=output/capacity) (%) 179.2% 201.6% 200.0% Total sell (kWh) 611.4 399.2 331.3

Power trading Total purchase (kWh) 26.4 307.8 733.4 Total demand (kWh) 493.6 987.1 1480.7 Total profit (NTD) 1749.0 206.5 -1367.8

Ba sic demand 4.8 (Case 1) Double demand 9.2 (Case 2) Triple demand 2.0 (Case 3) The gene ration of solar

power and wind power are 210 and 869 kWh, respectively.

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a conceptual

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presented at PESC04, Aachen, Germany,