Real-Time Price-Based Optimal Energy Mix in Smart Distribution Network

Abstract

With the increasing penetration of Distributed Energy Resources (DERs) in Smart Distribution Networks (SDNs), balancing energy mix is a crucial task for distribution system operators. The aggregate consumption, generation, and power exchanged from the upstream network are essential for the energy management system. Appropriate allocation and scheduling of DERs and Energy Storage can minimize the total power drawn from the upstream network. This paper analyzes the Real-Time Price (RTP)-based approach for optimizing the scheduling of DERs and power transfer from the upstream network. The Mixed Integer Linear Programming (MILP)-based optimization approach is used to maximize the total profit made by maintaining optimal energy mix in SDNs by using the energy from DER and energy storage. When the upstream network’s tariff is higher, the energy balance is maintained by DERs and ESSs as far as possible. It is also observed that with the reduction in the energy price from DERs, power export from the SDN to the upstream network is increased.