Distributed energy resource system optimisation using mixed integer linear programming

• Published in: Energy policy Vol. 61; pp. 249 - 266
• Main Authors: Omu, Akomeno, Choudhary, Ruchi, Boies, Adam
• Format: Journal Article
• Language: English
• Published: Kidlington Elsevier Ltd 01.10.2013; Elsevier; Elsevier Science Ltd
• Subjects: Applied sciences; Buildings; Competition; Competitive advantage; Competitiveness; Cost; Distributed control systems; Distributed energy resources; Distributed generation; Economic analysis; Economic data; Economics; Electric energy; Electric power; Electricity; Energy; Energy economics; Energy modeling; Energy policy; Energy resources; Energy sector; Energy sources; Energy subsidies; Environmental impact; Exact sciences and technology; General, economic and professional studies; heat; Heating; Integer programming; Investment; Investments; Linear programming; Location; Mathematical models; Methodology. Modelling; MILP; Mixed integer; Neighborhoods; Networks; Operating costs; Optimization techniques; Position (location); Power generation; Renewable energy; Renewable energy sources; Residential areas; residential housing; Studies; Subsidies; Tariff; tariffs; Technology; Trade; United Kingdom; United Kingdom; England; Great Britain; Europe; MILP; Energy subsidies; Distributed energy resources; Cost minimization; Cogeneration; Economic optimization; Heat production; Linear programming; Mixed integer programming; Subsidy; Case study; Optimal strategy; Decentralized system; Technicoeconomic study; Production cost; Distributed generation; Electric power production; Investment
• ISSN: 0301-4215; 1873-6777
• DOI: 10.1016/j.enpol.2013.05.009

In this study a mixed integer linear programming (MILP) model is created for the design (i.e. technology selection, unit sizing, unit location, and distribution network structure) of a distributed energy system that meets the electricity and heating demands of a cluster of commercial and residential buildings while minimising annual investment and operating cost. The model is used to analyse the economic and environmental impacts of distributed energy systems at the neighbourhood scale in comparison to conventional centralised energy generation systems. Additionally, the influence of energy subsidies, such as the UK's Renewable Heat Incentives and Feed in Tariffs, is analysed to determine if they have the desired effect of increasing the economic competitiveness of renewable energy systems. •A MILP model was created to design a distributed energy resource system for a cluster of buildings.•The optimal DER system was found to decrease annual costs by 40% and CO2 emissions by 50%.•Small wind turbines and biomass boilers were found to be the optimal technologies.•Energy subsidies are vital because they increase the affordability of low carbon technologies.