Transactive Framework for Dynamic Energy Storage Allocation for Critical Load Management

TL;DR

This paper introduces a transactive framework that optimizes energy storage allocation in microgrids, balancing cost and reliability amidst renewable energy uncertainties to ensure critical load management.

Contribution

It proposes a novel cost-effective dynamic resource allocation strategy with provable guarantees, improving microgrid resilience and reducing storage costs under renewable variability.

Findings

The proposed algorithm effectively manages renewable uncertainty.

Simulation results show improved reliability and cost savings.

The framework ensures critical load demand is met with high probability.

Abstract

Increased penetration of Distributed Energy Resources (DER) and Renewable Energy Systems (RES) transforming the conventional distribution grid into a transactive framework supervised by a distribution system operator (DSO). Although the emerging transactive energy management techniques improve the grid reliability, the inherent uncertainty of RES poses a challenge in meeting the power demand of the critical infrastructure in the microgrid unless sufficient battery energy storage is maintained. However, maintaining expensive battery storage increases the operating cost of the DSO. In this article, we propose a cost-effective dynamic resource allocation strategy to optimize the battery reserve requirement while ensuring the critical demand is met with a provable guarantee. Our proposed scheme enables the DSO to optimize the RES and battery reserve allocation to eliminate the risk of over or underproduction. We present numerical simulations under three different scenarios of multiple microgrids with uncertain renewable generation. The simulation results demonstrate the efficacy of the proposed transactive stochastic control algorithm.