Optimal Microgrid Energy Storage Strategies in the Presence of Renewables

This paper presents a preliminary stochastic optimization model to prescribe energy storage strategies within a smart electric power microgrid. A microgrid is a small-scale version of a centralized elect ric power grid that generates, distributes and regulates electricity flow to local residen tial consumers using distributed renewable sources, as well as the main grid. Because renewable sources (e.g., wind and solar power) are intermittent, consumers can utilize energy storage systems to adjust their usage and storage patterns in response to demand and pricing information that is revealed over time. We present a stochastic programming (SP) formulation to prescribe optimal and dynamic energy procurement and storage strategies that minimize the consumer’s electricity costs over a finite planning horizon. The usefulness of the model is illustrated by way of a numerical example involving three distinct scenarios.