Microgrid generation planning considering renewable energy target

Low carbon economy calls for an increasing penetration of renewable energy in power systems. In this paper, we develop a theoretical framework to study the optimal planning for a microgrid system, considering the renewable energy target. We model the renewable energy target as a planning and operational constraint. Then we develop a two-stage stochastic programming problem to minimize the overall cost of the microgrid. In Stage-1, the microgrid planner determines the optimal investment in renewable energy generations, e.g., from solar energy and wind energy. In Stage-2, the microgrid operator coordinates the energy supply and demand to minimize the daily operational cost. With realistic data, we numerically show the optimal investment in the capacities of solar energy and wind energy with respect to the renewable energy target. We also show the optimal power supply from renewable generation and the main grid.