Hybrid renewable energy investment in microgrid

Hao Wang, Jianwei Huang

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11 Citations (Scopus)

Abstract

Both solar energy and wind energy are promising renewable sources to meet the world's problem of energy shortage in the near future. In this paper, we identify the complementary relation between solar power and wind power at certain locations of Hong Kong, and aim at studying the hybrid renewable energy investment in the microgrid. We jointly consider the investment and operation problem, and present a two-period stochastic programming model from the microgrid operator's perspective. In the first period, the operator makes optimal investment decisions on solar and wind power capacities. In the second period, the operator coordinates the power supply and demand in the microgrid to minimize the social operational cost. We design a decentralized algorithm for computing the optimal pricing and power consumption in the second period, and based on this solve the optimal investment problem in the first period. With realistic meteorological data obtained from Hong Kong observatory, we numerically demonstrate that the demand response saves 18% of the capital investment, and hybrid renewable energy investment reduces the generation capacity by up to 6.3% compared to a single renewable energy investment.

Original languageEnglish
Title of host publication2014 IEEE International Conference on Smart Grid Communications (SmartGridComm)
EditorsVincent Wong, John McDonald, Lars Nordstrom
Place of PublicationPiscataway NJ USA
PublisherIEEE, Institute of Electrical and Electronics Engineers
Pages602-607
Number of pages6
ISBN (Electronic)9781479949342
DOIs
Publication statusPublished - 2014
Externally publishedYes
EventInternational Conference on Smart Grid Communications 2014 - Hilton Molino Stucky, Venice, Italy
Duration: 3 Nov 20146 Nov 2014

Conference

ConferenceInternational Conference on Smart Grid Communications 2014
Abbreviated titleSmartGridComm 2014
CountryItaly
CityVenice
Period3/11/146/11/14

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