Optimal design and operation of distributed energy resources systems for residential neighbourhoods

Abstract

Different designs of distributed energy resources (DER) systems could lead to different performance in reducing cost, environmental impact or use of primary energy in residential networks. Hence, optimal design and management are important tasks to promote diffusion against the centralised grid. However, current operational models for such systems do not adequately analyse their complexity. This paper presents the results of a mixed-integer linear programming (MILP) model of distributed energy systems in the residential sector which builds up on previous work in this field. A superstructure optimisation model for design and operation of DER systems is obtained, providing a more holistic overview of such systems by including the following novel elements: a) Design and utilisation of a network with integrated heating/cooling pipelines and microgrid connections between neighbourhoods; b) Exploration of use of feed-in tariffs (FITs), renewable heat incentives (RHIs) and the ability to buy/sell from/to the national grid. It is shown that the (DER network mitigates around 30–40% of the CO2 emissions per household, compared with “traditional generation”. Money from FITs, RHIs and sales to the grid, as well as reduced grid purchases, make DER networks far more economical, and even profitable, compared to the traditional energy consumption.