Optimal Control of Distributed Energy Resources and Demand Response under Uncertainty

Conference · Tue Jun 01 04:00:00 EDT 2010

OSTI ID:986323

Siddiqui, Afzal; Stadler, Michael; Marnay, Chris; Lai, Judy

We take the perspective of a microgrid that has installed distribution energy resources (DER) in the form of distributed generation with combined heat and power applications. Given uncertain electricity and fuel prices, the microgrid minimizes its expected annual energy bill for various capacity sizes. In almost all cases, there is an economic and environmental advantage to using DER in conjunction with demand response (DR): the expected annualized energy bill is reduced by 9percent while CO2 emissions decline by 25percent. Furthermore, the microgrid's risk is diminished as DER may be deployed depending on prevailing market conditions and local demand. In order to test a policy measure that would place a weight on CO2 emissions, we use a multi-criteria objective function that minimizes a weighted average of expected costs and emissions. We find that greater emphasis on CO2 emissions has a beneficial environmental impact only if DR is available and enough reserve generation capacity exists. Finally, greater uncertainty results in higher expected costs and risk exposure, the effects of which may be mitigated by selecting a larger capacity.

• Research Organization: Ernest Orlando Lawrence Berkeley National Laboratory, Berkeley, CA (US)
• Sponsoring Organization: Environmental Energy Technologies Division
• DOE Contract Number: AC02-05CH11231
• OSTI ID: 986323
• Report Number(s): LBNL-3828E
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION
CAPACITY
DISTRIBUTION
Distributed generation
demand response
CO2 emissions
stochastic optimization
ECONOMICS
ELECTRICITY
ENVIRONMENTAL IMPACTS
MARKET
OPTIMAL CONTROL
PRICES