A multi-objective optimization approach for assessment of technical, commercial and environmental performance of microgrids

This paper proposes a multi-objective optimization model to evaluate potential economic, technical and environmental benefits of Microgrid operation. Internalization of external costs such as induced by energy losses (network related) and CO2 emissions (environmentally related) is performed to address the interests of different agents within a single optimization framework. After presenting four reference operation strategies, a multi-layered scheduling algorithm based on genetic algorithm and linear/quadratic programming is introduced in detail. The algorithm is applied to a UK urban test grid with four different levels of penetration of distributed energy resources. The simulation results lead to the recommendation of a combined dispatch strategy that can simultaneously satisfy all constraints and provide a proper compromise for conflicting objectives of different stakeholders involved in energy supply chain. In particular, a Pareto front representation of the optimization results is also given to further illustrate the multi-objective nature of the problem. Copyright (C) 2010 John Wiley & Sons, Ltd.