Optimal management of an energy storage unit in a PV-based microgrid integrating uncertainty and risk

Abstract

This paper addresses an optimized management of a storage energy battery which is part of a microgrid with a connection to the main grid and is supplied by a photovoltaic (PV) power plant. The main contribution of this paper is to consider uncertainty in electricity price while managing the battery storage. The forecasted value for demand and PV unit are predicted by a seasonal autoregressive integrated moving average model (SARIMA)-capable of accurately characterizing both seasonality effects and tail fatness. The optimal operation of the battery is determined by resolving a linear optimization program in which the objective function comprises the conditional value at risk (CVaR). Using CVaR ensures that the demand is fully supplied while minimizing the risk and operational cost. The cost function is the difference between power sold and bought subject to the charging and discharging rates for the battery and defining upper and lower bounds for the level of battery charge. The simulation results confirm that the risk consideration has a significant effect on the optimized management of a storage energy battery in a photovoltaic grid-connected microgrid.