Interval Optimization Based Coordination of Demand Response and Battery Energy Storage System Considering SOC Management in a Microgrid

Abstract

Microgrids can effectively integrate distributed generation (DG) to supply power to local loads. However, uncertainties from renewable DG and loads may lead to increased operating costs or operating constraint violations. To solve these issues, this paper proposes a two-stage coordination approach of price-based demand response (PBDR) and battery energy storage systems (BESSs) to minimize the total operating cost and enhance operational reliability. In the first stage, day-ahead PBDR is scheduled, aiming to shift loads to improve renewable energy utilization efficiency. Considering limited prediction horizon of uncertainties when dispatching BESSs, hourly state of charge (SoC) limits are also optimized over the whole-day horizon with consideration of BESS degradation cost in the day-ahead stage. Then in the second stage, the BESSs are dispatched hourly within the optimized SoC limits to track uncertainty realization and compensate the first-stage PBDR decisions. Furthermore, a two-stage interval optimization (TSIO) method is proposed to formulate the problem. Accordingly, a solution algorithm is developed to coordinately solve the two operation stages under the uncertainties. The proposed coordination approach is verified with uncertainty realization scenarios. The results indicate the high energy utilization efficiency and strong operational reliability of the proposed coordination approach.