Abstract
The contributions of Distributed Energy Generation (DEG) and Distributed Energy Storage (DES) for Demand Side Management (DSM) purposes in a smart macrogrid or microgrid cannot be over-emphasised. However, standalone DEG and DES can lead to under-utilisation of energy generation by consumers and financial investments; in grid-connection mode, though, DEG and DES can offer arbitrage opportunities for consumers and utility provider(s). A grid-connected smart microgrid comprising heterogeneous (active and passive) smart consumers, electric vehicles and a large-scale centralised energy storage is considered in this paper. Efficient energy management by each smart entity is carried out by the proposed Microgrid Energy Management Distributed Optimisation Algorithm (MEM-DOA) installed distributively within the network according to consumer type. Each smart consumer optimises its energy consumption and trading for comfort (demand satisfaction) and profit. The proposed model was observed to yield better consumer satisfaction, higher financial savings, and reduced Peak-to-Average-Ratio (PAR) demand on the utility grid. Other associated benefits of the model include reduced investment on peaker plants, grid reliability and environmental benefits. The MEM-DOA also offered participating smart consumers energy and tariff incentives so that passive smart consumers do not benefit more than active smart consumers, as was the case with some previous energy management algorithms.
Highlights
Smart grid provides an enabling environment for the integration of Distributed Energy Generation (DEG) and Distributed Energy Storage (DES) for Demand Side Management (DSM) and Demand Response (DR) purposes, with mutual benefits to electricity utility providers and consumers
The proposed algorithm can be installed in the smart meters of consumers, and Energy Management Controller (EMC) of the Microgrid Energy Storage (MES) device and Plug-in Hybrid Electric Vehicles (PHEVs) and the utility grid
Another contribution of this work, which goes beyond existing literature on energy management [6,12,16], is that it guides against a situation where passive smart consumers can benefit more than active smart consumers in a smartgrid
Summary
Smart grid provides an enabling environment for the integration of Distributed Energy Generation (DEG) and Distributed Energy Storage (DES) for Demand Side Management (DSM) and Demand Response (DR) purposes, with mutual benefits to electricity utility providers and consumers. The proposed algorithm can be installed in the smart meters of consumers, and Energy Management Controller (EMC) of the MES device and Plug-in Hybrid Electric Vehicles (PHEVs) and the utility grid Another contribution of this work, which goes beyond existing literature on energy management [6,12,16], is that it guides against a situation where passive smart consumers can benefit more than active smart consumers in a smart (micro)grid. The proposed MEM-DOA enhances consumer satisfaction by factoring tolerance into dissatisfaction problems in order to ensure that every appliance scheduling is within what the consumer is willing to tolerate, unlike most algorithms in the literature This type of architecture can offer grid reliability and stability, financial benefits to all its smart entities, consumers’ social welfare, reduction in Peak-to-Average-Ratio (PAR) demand, and CO2 emissions.
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