Assessing Economic Performance of an Energy Microgrid : A Conditional Value-at-Risk Optimization Approach

Abstract

Distributed generation resources integration within the energy system not only ensures efficient power penetration and reliable electricity supply but also empowers consumers to optimize energy consumption, leading to a more flexible and customer-centric energy landscape. To enhance the economic performance of distributed energy resources (DERs), this work utilizes a hybrid fuel cell power generation system utilizing energy storage.

This research aims to address uncertainty in electricity and gas prices, a crucial parameter influencing economic feasibility. To achieve this, we adopt the conditional value-at-risk (CVaR) optimization method, enabling effective management and mitigation of potential risks associated with volatile electricity and gas prices. This approach seeks to ensure the optimal economic performance of the hybrid energy system under varying market conditions. This integration is aimed at optimizing energy supply and demand, thereby maximizing the economic benefits of the distributed generation system. Through economic modeling, we give a particular focus on the fuel cell’s pivotal role in achieving benefits. The findings offer valuable insights for policymakers and stakeholders in the energy sector, paving the way for a more sustainable and efficient energy future.