Cloud Energy Storage Investment by Collaboration of Microgrids for Profit and Reliability Enhancement Considering a TSO-DSO Yearly Reward

Abstract

A shared pool of grid-scale storage resources called Cloud Energy Storage (CES) can bring substantial benefits to the economical and reliable operation of MGs. However, the investment cost of CES may not be affordable for a single microgrid (MG). As a solution, we propose an approach in which neighboring microgrids in a distribution network collaborate and form a multi-microgrid (multi-MG) to install a shared CES to increase their profit and improve their reliability. Different investment scenarios are evaluated by considering the yearly reward from TSO and DSO. For each of the investment scenarios, TSO and DSO give a yearly reward based on the contribution of CES in peak-shaving and distribution network operation yearly cost reduction. Afterward, a decision table is provided in which, for all investment scenarios, profit, reliability index based on expected energy not supplied (ENS), and TSO-DSO yearly reward are determined. Finally, the microgrids select one of the investment scenarios using a multi-attribute decision-making approach. Simulation results of a case study validate the effectiveness of the proposed collaborative decision-making framework in increasing the economic value of CES investment, reliability enhancement in multi-MG, and peak-shaving.

Keywords

• Microgrids
• energy storage
• decision making
• cloud energy storage (CES) investment
• distribution system
• reliability