This brief focuses on stochastic energy optimization for distributed energy resources in smart grids. Along with a review of drivers and recent developments towards distributed energy resources, this brief presents research challenges of integrating millions of distributed energy resources into the grid. The brief then proposes a novel three-level hierarchical architecture for effectively integrating distributed energy resources into smart grids. Under the proposed hierarchical architecture, distributed energy resource management algorithms at the three levels (i.e., smart home, smart neighborhood, and smart microgrid) are developed in this brief based on stochastic optimization that can handle the involved uncertainties in the system. Preface 6 Contents 8 Acronyms 10 1 Hierarchical Architecture for Distributed Energy Resource Management 11 1.1 Introduction to DERs 11 1.2 Research Challenges for Integrating DERs 12 1.3 A Novel Hierarchical Architecture for DER Management 13 1.4 Related Work 14 References 15 2 Optimal Energy Management for Smart Homes 19 2.1 System Model 19 2.1.1 Renewable Energy Generation 19 2.1.2 Energy Storage 20 2.1.3 Electricity Market 21 2.1.4 Control Objective 21 2.2 Inelastic Energy Demand 22 2.2.1 Relaxed Problem 23 2.2.2 Our Proposed Algorithm 25 2.2.3 Algorithmic Properties 26 2.3 Elastic Energy Demand 27 2.3.1 Relaxed Problem 29 2.3.2 Delay-Aware Virtual Queue 30 2.3.3 Our Proposed Algorithm 30 2.3.4 Algorithmic Properties 31 2.4 Performance Evaluation 33 2.4.1 Simulation Setup 33 2.4.2 Results and Analysis 34 Appendix 36 Proof of Theorem 2.1 36 Proof of Lemma 3.1 39 Proof of Theorem 2.2 40 References 44 3 Decentralized Coordination of Energy Consumption for Smart Neighborhoods 45 3.1 System Model 45 3.1.1 Load Serving Entity 45 3.1.2 Energy Loads 46 3.1.3 Energy Storage 47 3.1.4 Renewable Distributed Generation 48 3.2 Problem Formulation 49 3.3 Online Distributed Algorithm 50 3.3.1 Relaxed Problem 50 3.3.2 Delay-Aware Virtual Queue 51 3.3.3 The Lyapunov Approach 52 3.3.4 Distributed Algorithm 55 3.4 Performance Analysis 57 3.5 Performance Evaluation 60 3.5.1 Simulation Setup 60 3.5.2 Results and Analysis 61 Appendix 64 The Worst-case Delay for Buffered Elastic Loads 64 References 65 4 Risk-Constrained Optimal Energy Management for SmartMicrogrids 66 4.1 System Model 66 4.1.1 Combined Heat and Power 67 4.1.2 Deferrable Load 69 4.1.3 Electrical and Thermal Storage 69 4.1.4 Heat Supply and Balance 70 4.1.4.1 Linearized Power Flow Equations 71 4.1.4.2 Network Constraints 72 4.1.5 Electricity Market 72 4.2 Problem Formulation 73 4.2.1 Conditional Value at Risk 73 4.2.2 Objective Function 74 4.3 Solution Approach 75 4.4 Case Study 76 4.4.1 Numerical Settings 76 4.4.2 Simulation Results 77 4.4.2.1 Stochastic Approach Versus Deterministic Approach 77 4.4.2.2 Expected Operating Cost and CVaR 78 4.4.2.3 Voltage Regulation Tests 78 4.4.2.4 Sensitivity Analysis 79 References 81 5 Conclusion 83 5.1 Concluding Remarks 83 5.2 Future Work 84 Front Matter....Pages i-ix Hierarchical Architecture for Distributed Energy Resource Management....Pages 1-8 Optimal Energy Management for Smart Homes....Pages 9-34 Decentralized Coordination of Energy Consumption for Smart Neighborhoods....Pages 35-55 Risk-Constrained Optimal Energy Management for Smart Microgrids....Pages 57-73 Conclusion....Pages 75-76
