Scenario-Based Stochastic Optimization for Energy and Flexibility Dispatch of a Microgrid

Energy storage is one of the most important components of microgrids with non-dispatchable generators and can offer both energy and flexibility services when the microgrid operates in grid-connected mode. This paper proposes a scenario-based stochastic optimization model that can be used to determine the energy and flexibility dispatch of a residential microgrid with solar and stationary battery systems. The objective of the model is to minimize the expected energy and peak power cost as well as the battery aging cost, while maximizing the expected revenue from flexibility. The formulated stochastic optimization problem is solved in rolling horizon with the uncertainty model being dynamically updated to consider the most recent forecast profiles for solar power and electricity demand. The benefits of the proposed approach were demonstrated by simulating the daily operation of a real building. The results showed that the estimated flexibility was successfully dispatched yielding an economic value of at least 7% of the operation cost of the building microgrid. The model can be used by flexibility providers to assess their flexibility and design a bidding strategy as well as by system operators to design incentives for flexibility providers.

Automated summary

This paper proposes a stochastic optimization model for determining the energy and flexibility dispatch of a residential microgrid. The model considers forecast profiles for solar power and electricity demand, minimizing costs and maximizing revenue. Simulation results on a real building show that the method yields an economic value of 7%.