A Hierarchical Optimization-Based Model for Microgrids with Energy Storage Considering Operation Cost and Net Load Mean Square Error

When a high proportion of renewable energy is connected to the grid, the net load fluctuation can be suppressed by configuring energy storage. However, the current cost of energy storage is high. This paper proposes a bi-level optimization model that takes into account the dynamic allocation of shared energy storage (SES) capacity in response to electric load demand. The upper-layer objective function adopts EO optimization algorithm, which is to maximize the income of the shared energy storage operator (SESO). The lower-layer multi-objective function is to minimize the sum of the operating cost and the net load mean square error of multiple microgrids, which can be classified as the mixed integer linear programming problem. Then, the solution flow of the algorithm is given. Finally, under the constraints of the hierarchical optimization-based model, solving the problem by the CPLEX solver on the MATLAB platform. The results demonstrate that the proposed method can allocate optimal capacity and reduce operating costs for microgrids. Simultaneously, this method increases the revenue of SESO and promotes the consumption of renewable energy.