A Multi-Period and Multi-Objective Optimization Model of a Microgrid System Investment Model

Abstract

Microgrids are small-scale, low voltage power supply networks designed to supply electrical loads for a small community. This study extends existing mixed-integer linear programming microgrid investment models by considering multi-period and multi-objective investment setups. The optimization of the microgrid model provides investors a mix of distribution energy sources that maximizes the net present value (NPV) with consideration of the allowable budget and emission constraint under multiple periods. Through the NPV, the return of investment of the investor would be determined for the period that the model was run. Upon the analysis of the model, it was seen that the model chooses to prioritize the use of diesel generators until the emission constraint is maxed out. After which, it moves to the utilization of wind power then photovoltaic power. The use of electricity from the grid only happens when the demand for electricity is greater than the generating capacity of the system. Through the computational experiments performed, it was validated that the model can generate the purchasing pattern given the different parameters. This provides investors the set of equipment that they need to invest on each period based on their limited resources.