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This paper introduces a linear battery aging and degradation model to a multi-energy microgrid sizing model using mixed integer linear programming. The battery aging model and its integration into a larger microgrid sizing formulation are described. A case study is provided to explore the impact of considering battery aging on key results: optimal photovoltaic and storage capacities, optimal distributed energy resources operations strategies, and annual cost and generation metrics. The case study results suggest that considering battery degradation in optimal microgrid sizing problems significantly impacts the perceived value of storage. Depending on capacity loss and lifetime targets, considering battery degradation is shown to decrease optimal storage capacities between 6 and 92% versus scenarios that do not consider battery health. When imposing constant distributed energy resource capacities, inclusion of degradation can decrease optimal annual battery cycling by as much as a factor five and reduce total annual electricity cost savings from otherwise identical photovoltaic and storage systems by 5–12%. These results emphasize that as batteries grow in maturity and ubiquity for distributed energy applications, considering battery health and capacity loss is an essential component of any analytical tool or model to guide system planning and decision-making.

Electric retail rate design is relevant to utilities, customers, and regulators as retail rates impact the utility's revenue as well as the customers' electricity bills. In California, regulators approve rate proposals by privately owned vertical integrated utilities. Approval, however, is subject to compliance with multiple, potentially conflicting objectives such as economic or environmental objectives. Additionally, retail rates are price signals that affect how customers use electricity services. When utility customers change their usage, they also impact the ratemaking objectives to which rates have been designed. This suggests a feedback loop, which is particularly pronounced with prosumers, as they can systematically optimize their interactions with the electricity system. Prevalent ratemaking methods may not deliver retail rates that are optimal for multiple objectives when customers are prosumers. We propose a novel ratemaking method that formalizes the problem of designing retail rates as a multi-criteria optimization problem and accounts for prosumer reactions through a simulation-based optimization approach. Through a fictive case study, we found that the resulting Pareto frontiers are useful in recognizing and balancing tradeoffs among conflicting ratemaking objectives. Additionally, our results indicate that prevailing retail rates in California are not Pareto optimal.

The large-scale deployment of distributed energy resources will produce reverse power flows, voltage, and congestion problems in the distribution networks. This paper proposes a novel optimization model to support distribution system operators planning future medium voltage distribution networks characterized by high penetration of behind-the-meter distributed energy resources. The optimization model defines the optimal mix, placement, and size of on-load tap charger transformers and energy storage devices with the objectives of mitigating network technical problems and minimizing both investment and operation costs. The proposed optimization model relaxes the non-convex formulation of the optimal power flow to a constrained second-order cone programming model and exactly linearizes the non-linear model of the on-load tap changer transformer via binary expansion scheme and big-M method. These two transformations reduce the computational burden of the optimization allowing it to be applicable to real-scale distribution grids, as demonstrated by the results. The numerical results also show that the joint optimization of energy storage devices and on-load tap changer transformers produces a more affordable and flexible planning strategy than the individual optimization of the technologies.

International audience; Microgrid operations are challenging due to variability in loads and renewable energy generation. Advanced tools capable of taking uncertainty into account are essential to maximize microgrid benefits when operating microgrid owned DERs. This paper proposes a novel optimization model for day-ahead economic dispatch of flexible resources within a microgrid environment, considering uncertainty of PV and loads.This model is conceived to support the microgrid supervisory control layer, providing a security-constrained day-ahead strategy to operate three types of microgrid flexible resources: PV, electric storage and controllable loads. The work presented in this paper introduces a novelty in microgrid operations by presenting a stochastic version of the day ahead scheduling of microgrid DERs to deal with uncertainties associated with PV, load and temperature while considering microgrid network limits and end-user comfort as optimization constraints. An annual analysis quantifies the benefits of to the microgrid-owner of a stochastic formulation over a deterministic one both in terms of ensuring end-user comfort and decreasing operation costs.

Thermal energy storage (TES) and distributed generation technologies, such as combined heat and power (CHP) or photovoltaics (PV), can be used to reduce energy costs and decrease CO2 emissions from buildings by shifting energy consumption to times with less emissions and/or lower energy prices. To determine the feasibility of investing in TES in combination with other distributed energy resources (DER), mixed integer linear programming (MILP) can be used. Such a MILP model is the well-established Distributed Energy Resources Customer Adoption Model (DER-CAM); however, it currently uses only a simplified TES model to guarantee linearity and short run-times. Loss calculations are based only on the energy contained in the storage. This paper presents a new DER-CAM TES model that allows improved tracking of losses based on ambient and storage temperatures, and compares results with the previous version. A multi-layer TES model is introduced that retains linearity and avoids creating an endogenous optimization problem. The improved model increases the accuracy of the estimated storage losses and enables use of heat pumps for low temperature storage charging. Results indicate that the previous model overestimates the attractiveness of TES investments for cases without possibility to invest in heat pumps and underestimates it for some locations when heat pumps are allowed. Despite a variation in optimal technology selection between the two models, the objective function value stays quite stable, illustrating the complexity of optimal DER sizing problems in buildings and microgrids.

Optimizing Distributed Energy Resources and I Building Retrofits with the Strategic DER- CAModel Michael Stadler 1,2, , Markus Groissbock 1,2 Goncalo Cardoso 1,3 , Chris Marnay 1 Ernest Orlando Lawrence Berkeley National Laboratory, One Cyclotron Road, MS: 90-1121, Berkeley, California 94720, USA Center for Energy and innovative Technologies (CET), Doberggasse 9, 3681 Hofamt Priel, Austria Instituto Superior Tecnico - Technical University of Lisbon, Portugal The Distributed Energy Resources Customer Adoption Model (DER-CAM) has been designed at Lawrence Berkeley National Laboratory (LBNL). DER-CAM has been funded partly by the Office of Electricity Delivery and Energy Reliability, Distributed Energy Program of the U.S. Department of Energy under Contract No. DE-AC02-05CH11231 . July 2014

Nowadays, a significant number of distribution systems are facing problems to accommodate more photovoltaic (PV) capacity, namely due to the overvoltages during the daylight periods. This has an impact on the private investments in distributed energy resources (DER), since it occurs exactly when the PV prices are becoming attractive, and the opportunity to an energy transition based on solar technologies is being wasted. In particular, this limitation of the networks is a barrier for larger consumers, such as commercial and public buildings, aiming at investing in PV capacity and start operating as microgrids connected to the MV network. To address this challenge, this paper presents a coordinated approach to the microgrid investment and planning problem, where the system operator and the microgrid owner collaborate to improve the voltage control capabilities of the distribution network, increasing the PV potential. The results prove that this collaboration has the benefit of increasing the value of the microgrid investments while improving the quality of service of the system and it should be considered in the future regulatory framework.

The large scale penetration of electric vehicles (EVs) will introduce technical challenges to the distribution grid, but also carries the potential for vehicle-to-grid services. Namely, if available in large enough numbers, EVs can be used as a distributed energy resource (DER) and their presence can influence optimal DER investment and scheduling decisions in microgrids. In this work, a novel EV fleet aggregator model is introduced in a stochastic formulation of DER-CAM [1], an optimization tool used to address DER investment and scheduling problems. This is used to assess the impact of EV interconnections on optimal DER solutions considering uncertainty in EV driving schedules. Optimization results indicate that EVs can have a significant impact on DER investments, particularly if considering short payback periods. Furthermore, results suggest that uncertainty in driving schedules carries little significance to total energy costs, which is corroborated by results obtained using the stochastic formulation of the problem.

Optimal microgrid design is a challenging problem, especially for multi-energy microgrids with electricity, heating, and cooling loads as well as sources, and multiple energy carriers. To address this problem, this paper presents an optimization model formulated as a mixed-integer linear program, which determines the optimal technology portfolio, the optimal technology placement, and the associated optimal dispatch, in a microgrid with multiple energy types. The developed model uses a multi-node modeling approach (as opposed to an aggregate single-node approach) that includes electrical power flow and heat flow equations, and hence, offers the ability to perform optimal siting considering physical and operational constraints of electrical and heating/cooling networks. The new model is founded on the existing optimization model DER-CAM, a state-of-the-art decision support tool for microgrid planning and design. The results of a case study that compares single-node vs. multi-node optimal design for an example microgrid show the importance of multi-node modeling. It has been shown that single-node approaches are not only incapable of optimal DER placement, but may also result in sub-optimal DER portfolio, as well as underestimation of investment costs.

E RNEST O RLANDO L AWRENCE B ERKELEY N ATIONAL L ABORATORY Electric Storage in Californiaʼs Commercial Buildings Michael Stadler 1,2,a , Maximillian Kloess 1,3,b , Markus Groissbock 1,2,c , Goncalo Cardoso 4,d , Ratnesh Sharma 5,e , Mohammad C. Bozchalui 5,f , and Chris Marnay 1,g Ernest Orlando Lawrence Berkeley National Laboratory, One Cyclotron Road, MS: 90-1121, Berkeley, California 94720, USA Center for Energy and Innovative Technologies, Austria Vienna University of Technology, Austria Instituto Superior Tecnico - Technical University of Lisbon, Portugal NEC Laboratories America Inc., USA a corresponding author, mstadler@lbl.gov and mstadler@cet.or.at, Tel.: +1.510.486.4929 kloess@eeg.tuwien.ac.at c mgroissboeck@cet.or.at d goncalo.cardoso@ist.utl.pt e ratnesh@sv.nec-labs.com f mohammad@sv.nec-labs.com g chrismarnay@lbl.gov b Environmental Energy Technologies Division To be published in Applied Energy Journal by Elsevier 20 December 2012 http://emp.lbl.gov/reports The work described in this paper was funded by the Office of Electricity Delivery and Energy Reliability, Distributed Energy Program of the U.S. Department of Energy under Contract No. DE-AC02-05CH11231 and by NEC Laboratories America Inc. We also want to thank Professor Dr. Tomas Gomez and Ilan Momber for their very valuable contributions to previous versions of DER-CAM.

Distributed energy resources gain an increased importance in commercial and industrial building design. Combined heat and power (CHP) units are considered as one of the key technologies for cost and emission reduction in buildings. In order to make optimal decisions on investment and operation for these technologies, detailed system models are needed. These models are often formulated as linear programming problems to keep computational costs and complexity in a reasonable range. However, CHP systems involve variations of the efficiency for large nameplate capacity ranges and in case of part load operation, which can be even of non-linear nature. Since considering these characteristics would turn the models into non-linear problems, in most cases only constant efficiencies are assumed. This paper proposes possible solutions to address this issue. For a mixed integer linear programming problem two approaches are formulated using binary and Special-Ordered-Set (SOS) variables. Both suggestions have been implemented into the optimization model DER–CAM to simulate investment decisions of CHP micro-turbines and CHP fuel cells with variable efficiencies. The approaches have further been applied successfully in a case study with four different commercial buildings. Comparison of the results between the standard version and the new approaches indicate that total annual system costs remain almost unchanged. System performance is subject to change and storage technologies become more important. Part load operation has mainly been found important for fuel cell units. The micro-turbine is found almost exclusively in full load, thus rendering the application of the new approaches for this technology unnecessary for the considered unit sizes and building types. The approach using binary variables was the most promising method to model variable efficiencies in terms of computational costs and results. It should especially be considered for specific fuel cell technologies. Further investigation on the impacts of this approach on the prediction of fuel cell and micro-turbine performance is suggested.