Energy Management System for an Islanded Microgrid using Stochastic Dynamic Programming under Uncertainty

Today, intelligent management techniques play an increasingly important role in achieving clean and profitable energy solutions. As energy consumption rises around the world, the complexity of effective strategies to manage our energy resources based on new technologies also grows. This research paper introduces a smart energy management scheme for an islanded microgrid containing photovoltaic panels, a geothermal generator, a biomass generator, and an energy storage system, considering the uncertainty of the PV power output. The microgrid’s proposed energy management method resolves the generator’s scheduling problem using stochastic-dynamic programming, focusing on day-ahead cost optimization. The development of this solution is done using the Matlab environment. The main objective is not only to minimize the daily cost of the microgrid but also to prolong the batteries’ life cycle. Three different cases are studied considering the functionality of the energy storage system.