Dynamic energy portfolio optimization model for electricity system and heating system

In this paper we develop an optimization model for investigating the community electricity system behavior and policy implications of the usage of different energy facilities under the goal of reducing cost. There are four energy sources in this model: combined heat and power (CHP), wind turbine, electrical grid and electricity storage. When considering the dynamic demand requirements and energy price, we found that, to minimize the total cost, the storage discharges at high price time and charge during low price time. Also, the storage can discharge when there is not enough wind and the demand is at peak. However, the sum of charge is larger than that of discharge because of the electricity loss of storage device.