Abstract

Distributed energy resources (DER) is taking an increasingly important role in today's open energy market. A DER system is a complex system utilizing a wide range of energy suppliers including combined heat and power (CHP) systems and renewable, such as photovoltaic and wind turbine. It has been expected to spread to increase the efficiency of energy consumption and to address global environmental problems. However, it will also result in more complex systems to design, operate and maintain. In order to realize high economical and energy-saving potentials of the DER system, it is necessary to determine its structure rationally by selecting some kinds of equipment from many alternative ones so that they match energy demand requirements for an objective user. It is also important to determine rationally the number and capacities of each kind of equipment selected, and the system's annual operating strategies corresponding to hourly variations in energy demands. In this paper, a model for structural and operational optimization of DER system is presented. The problem is formulated as a mixed integer linear programming where the objective is to minimize the overall cost of DER system. A simplex algorithm is employed to solve the problem because it can save a lot of computation time by eliminating unnecessary cases among every possible combination. In addition, an illustrative example is presented. The solution gives the DER structure, i.e., which and how many production units should be built as well as their capacity, together with cost performance.

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