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Size Optimization of Distributed Generation Resources in Microgrid Based on

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Conference Paper · June 2020

DOI: 10.1109/icSmartGrid49881.2020.9144968

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 Size Optimization of Distributed Generation
Resources in Microgrid Based on Scenario tree
Seyed Mohammad Sadegh Hosseinimoghadam1 Masoud Dashtdar3 / Seyed Mohammad Razavi4
/Hamzeh Roghanian2 3
Islamic Azad University, Bushehr Branch
4
1,2
Fars regional electric company Jundi-shapur university of technology Dezful
Bushehr, Iran Bushehr, Iran
[email protected], [email protected] dashtdar. [email protected], [email protected]

Abstract— A microgrid usually consists of a series of industry which deals with limitations of employing combined
distributed generation resources, energy storage system and systems, optimization of system utilization, reduction of
loads which can be employed in two ways: connected to the grid environmental pollutions, improvement of system’s total cost
or “island mode”. Also, using microgrids can lead to significant and generally, it addresses the optimal utilization of microgrids
advantages for both the consumer and power generating and smart grids.
companies. Microgrids can be an appropriate way for power
generation which considers the economic and environmental Microgrids are small-scale grids which are used in low-
issues of these regions. In this paper, determination of the voltage level using CHP technology to provide heat and
optimal size of a combined system, independent from the grid, is electric loads of small sites and places that don’t have access to
reviewed. The combined system under study consists of wind main power grid. In other words, microgrids are in fact an
turbines, solar arrays, fuel cells with hydrogen storager and active distribution network which consists of DG systems with
diesel generator; For uncertainty modelling of power generation different loads in distribution-voltage levels [3].
of the wind turbine and solar array, a scenario-based algorithm
is used. The goals of this research is to minimize the system cost Microgrids are used to provide energy to all consumption
and to reduce the environmental pollution during the study. Also, types such as household, industry and agriculture and their cost
system costs include initial investment costs, replacement cost, estimation is based on pricing policies in power market. Using
annual cost of repair and maintenance of system components and microgrids leads to high-quality power provision, increased
the cost of diesel generator’s fuel consumption. system reliability and reduced costs, losses and pollution in the
distribution grid. Considering the usage of new technologies
Keywords— Microgrid; Distributed generations; Scenario; such as wind turbines and solar cells in microgrids and also the
Optimization random nature of renewable sources such as wind and sunlight,
optimal and safe utilization and management of these grids
I. INTRODUCTION have become one of the main priorities for researchers in this
field [4-5].
With the advancement of human societies, the need for
energy has raised significantly. This need leads human
societies to new and high-efficiency resources. Also, II. MICROGRID
industrialization and increase in household consumption has Microgrids are series of small sources of energy generation
led to an unpredictable increase in demand for power. All of which are connected to the main grid. Microgrids are designed
this leads to an increasing amount of polluting gasses [1]. as combined heat and power (CHP) generating systems in
In recent decades and with the growing cost of fossil fuels small scales and low-voltage level (LV). Usually, microgrids
and the aim to produce clean energy, renewable energy sources are utilized in two ways: connected to the gird and “island
have gained the attention of industrialized countries. This has mode”. In both ways, microgrids will have an impact on
led to enormous progresses in utilization of these resources; but customers and the main grid. Fig. 1 shows a microgrid
renewable energy sources have a changing behavior and hence consisted of renewable and nonrenewable energy sources along
their power generation cannot be accurately predicted; and in with a battery storager, which is connected to the power grid.
order to increase the system’s reliability, diesel generators are The microgrid in this study obtains its energy from wind
widely used to meet the load demands in systems independent turbine, solar arrays, fuel cell and diesel generator. Hydrogen
from the grid [2]. But also, the risk of shortage and ending of storager consists of an electrolyser which stores the extra
fossil energy, growing cost of fossil fuels and aggravation of power generation, during the generation deficiency, as a
environmental issues due to abnormal increase of different supplier source. Diesel generator acts as a supporting source in
kinds of harmful compounds such as greenhouse gasses are times when wind turbines and solar arrays are not able to
part of the reasons that motivate countries into using renewable provide the load alone. The storage system contributes to
energy resources. provision of consumed load by power generation. Also, most
In fact, using renewable resources, in spite of its many mixed systems, considering their energy sources and lack of
advantages and disadvantages, has created a branch in power response to load peak in short spans of time, are equipped with
a diesel generator which is shown in Fig. 2, the diagram block consumption. GAMS, one of the strongest business
of the microgrid under study. As it can be seen in Fig. 2, the optimization software, has been used in this study.
combined system under study is consisted of 6 main
components and AC & DC buses. These components include A. The economic model of the system under study
wind power plant, solar array, electrolyser, hydrogen storage The economic model under study in this paper is based on
tank, fuel cell and DC/AC convertor. annual cost of the system (ACS) and minimization of power
generation cost. Annual cost of the system includes the costs of
initial investment (ACC), annual replacement costs, annual fuel
costs and annual repair and maintenance costs (AOC) [3][13].
 ACS=ACC+ARC+AFC+AOC  

 ACC=Ccap*CRF(i,n)  

Ccap: The cost of initial investment for equipment. CRF:

Initial recovery coefficient which is defined as following:
 CRF(i,n)=i(1+i)n/(1+i)n-1  

n: project’s life span (year). i: real interest which is defined

based on rated interest and annual inflation rate:
 i=(iloan-f)/(1+f)  

iloan: rated interest. f: annual inflation rate.

Fig. 1. Components of a microgird.

Annual replacement cost (ARC): Some units need to be
changed during the project’s life span and occasionally,
replacement occurs due to shorter life span than the project’s
length or because of unit’s failure during utilization.
 ARC=Crep*SFF(i,nrep)  

Crep: Cost of units replacement. nrep: Life span of the units.

SFF: Depreciation funds coefficient which is defined as the
following:
 SFF(i,nrep)=i/(1+i)nrep-1  

 AFC=Tfc*CRF(i,n)  

Tfc: The total fuel consumed by the generator in the

project’s life span.
Fig. 2. The diagram block of the microgrid under.
 AFC=Tfc*CRF(i,n)  
In this section of the paper, we define the problem and
discuss the simulation algorithm, the objective function, AOC(1): The maintenance cost of the system for a one year
simulation constraints and microgrid definition. First, we period.
define the problem and scenario-mode method and in the end,
the objective function is presented based on the system costs. B. The Objective Function and Problem’s Constraints
Microgrids are used to provide energy for all consumption The goal of this paper is to minimize the cost of power
types such as household, industry and agriculture consumptions generation of the mixed system. Also, the size of units and the
and their cost estimation is based on pricing policies in the consumed fuel by diesel generator affects the system’s cost. In
power market. In this paper, we analyze the determination of this paper, the optimal size of the system components i.e. the
optimal size of a combined system independent from the grid. capacity of electrolyser, hydrogen tank, fuel cell, diesel
The combined system under study consists of wind turbines, generator and DC/AC convertor will be determined in order to
solar array, fuel cells with hydrogen storager and diesel generate power with minimum costs. Also, due to uncertainty
generator. The goals of this research is to minimize the system in generation of wind turbine and solar array, the production
cost and to reduce the environmental pollution during the capacity of these sources are determined with the scenario-
study. Also, system costs include initial investment costs, mode method and then presented to the system and any
replacement cost, annual cost of repair and maintenance of additional consumption or extra generation will be provided or
system components and the cost of diesel generator’s fuel saved by other components of the microgrid. Here, the system
costs include the initial investment cost, equipment  Cost=kfc*Pfc,max+kelec*Pelec,max+kdiesel∑k=1,..,N (Pdiesel,k)  
replacement, fuel cost, annual repair and maintenance costs
plus penalties for environmental pollution and in the end, the In the above equation, Pfc,max and Pelec,max are respectively
simulation for a one year period is presented with the following the rated capacity of fuel cell and electrolyser. Pdiesel,k is the
objective function [8-12]. power generation capability of diesel generator in k hour. kfc,
kelec and kdiesel are extracted from the economic equations of the
Scenario 1 system and are considered as constants for each of the
equipments.
Scenario 2
 kfc=ACCfc+ARCfc+AOCfc  
Scenario 3
 kelec=ACCelec+ARCelec+AOCelec  
Scenario 4

1 stage 2 stage 3 stage  kdiesel=AOCdiesel+AFCdiesel  

 AOCdiesel=1000*(1+f)n1  
Fig. 3. The scenario tree.
AFCdiesel =dieselc*20*diesele*CRF1+CO2cost*20*diesele*CRF1
     

In above equations, dieselc and diesele are respectively equal

to diesel’s fuel price and diesel generator’s energy in one year.
Here, CO2cost is the penalty paid for carbon emission for
producing 20 units of pollution in each produced unit of
energy. Also, N is dependent on the time interval between
simulation and sampling period and in this study, samples are
obtained from each hour in a one year period. Thus N equals
8760. Here, the objective function of cost in optimized
considering the following constraints:
 Pfc,k+Pdiesel,k+Puncertain,k-Pelec,k-Pload,k=0  
Fig. 4. System’s Annual Load Profile.
 (Puncertain,k +Pdiesel,k –Pload,k)-Pelec,max ≤ 0  

 (Pload,k –Puncertain,k –Pdiesel,k)- Pfc,max ≤ 0  

 Pfc – Pfc,max ≤ 0  

 Pelec,k – Pelec,max ≤ 0  

 ∑k=1,..,N (Pfc,k –Pelec,k)≤ 0  

 Pdiesel,k –Pdiesel,max ≤ 0  

Fig. 5. System’s Daily Load Profile.  AOCdiesel=1000*(1+f)n1  

In the above equation, CH2 is the capacity of hydrogen

tank.

C. Scenario-based Algorithm for Uncertainty of Power

Generation of Wind Turbine and Solar Array
Environmental phenomena have a random nature. In this
article, the aim of reviewing the scenrio-based algorithm is to
reduce the system’s sensitivity to uncertainty of power
generation in solar arrays and wind turbines which we can
“uncertain power generation” Puncertain = Pwind + Ppv
 𝜆 ={𝜆t ,t ϵT}  
Fig. 6. The amount of sunlight radiation (kWh/m2/day). If the random process is variable, 𝜆 is expressed as:
 TABLE I. CHARACTERISTICS OF MICROGRID’S COMPONENTS

Parameters Wind Turbine Solar Cell Fuel Cell Electrolyser Convertor Diesel Generator

Rated Power (KW) 25 5 20 20 500 200/600/1000

Initial Investment ($) 100000 50000 20000 20000 2000 0
Repair Cost ($) 100 20 15 15 15 1000
Replacement Cost ($) 0 6000 1400 1400 0 0
Efficiency (%) - - 50 74 95 90
Life (years) 20 20 5 5 5 20
Fuel Consumption (lit/hour) 0 0 0 0 0 120/180/300
Harmful Gasses (kg/kWh) 0 0 0 0 0 0.699

TABLE III. OPTIMAL RESULTS OF THE MICROGRID BASED ON THE PROPOSED SCENARIO

Number of Wind Number of Solar Number of fuel Number of System’s Total Cost
Scenarios
Turbine Arrays Cells Electrolysers (1000$)
The proposed
3 58 8 2 3232.778
scenario

 𝜆 ={𝜆(ω),ω=1,2,..,NΩ}   

the probability of each process 
occurring
should be calculated
and sum of these probabilities equals 1.

TABLE II. WIND’S SPEED

 ∑ω=1,..,NΩ π(ω) = 1  

We accumulate a certain set of values of random processes

Month Jun Feb Mar Apr May Jun
in a tree called the scenario tree. The scenario tree includes a
series of nodes and branches; nodes express the possible
Speed(m/s) 3.9 3.9 3.9 4.2 4.2 5.2 conditions. In the scenario tree, the first node is called the main
mode and is dependent on the planning’s onset. Also, nodes
Month Jul Aug Sep Oct Nov Dec that are connected to the main node are the second stage of
decision-making and the last nodes in the last stage of planning
Speed(m/s) 4.2 4.2 4.4 5 4.4 3.9 are known as the output node. Each course between the main
node and the output node constitutes a scenario. Fig. 3 shows
an example of the scenario tree.
IAverage 85%
Scenario 1.51%
III. CHARACTERISTICS OF THE MICROGRID’S COMPONENTS
VAverage 60% Table. I summarizes the technical and economical features
Scenario 2.9%
of the equipments used in the mixed system under study
including initial investments costs, replacement costs, costs of
0.9IAverage 15% repair and maintenance of microgrid’s components, generation
capacity and the diesel generator’s fuel cost. The site under
IAverage 85% study is a region in Canada; Fig. 4 shows the annual load
Scenario 3.17%
0.8VAverage 20% profile and Fig. 5 shows the monthly load. Here, the power
generation capacity of wind turbine and solar array and features
of renewable units are reviewed. The wind speed and the
Scenario 4.3% amount of sunshine radiation are shown in Table. II and Fig. 6,
0.9IAverage 15% respectively.
IAverage 85%
Scenario 5.17% IV. SIMULATION RESULTS
As previously stated, the power generation from wind and
1.2VAverage 20% solar sources are irregular and solutions should be found to
Scenario 6.3% reduce this dependency. The scenario method reviews the
0.9IAverage 15% possible conditions and the possibility of change in region’s
weather and models the changes of output power along with
chances of an event occurring. Based on the hypothesis, we
Fig. 7. The amount of sunlight radiation (kWh/m2/day). consider 3 possibilities for wind’s speed and two for sunshine
which are summarized in Fig. 7. In Tables. III and IV, the
In which ω is the scenario’s indicator and NΩ is the number results of the size determination of the microgrid are shown
of possible scenarios. Also, in order to better express scenarios, considering the uncertainty in generation of renewable wind
and solar units along with the total cost of power generation
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