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This paper presents a new method for optimizing the operation of a microgrid, which minimizes the operating cost or maximizes solar generation of the microgrid. The microgrid consists of loads, storage devices, and distributed generations. The generation cost, capacity, ramp up and down rate, and minimum up and down time for each generator are considered. Characteristics of storage devices including charging and discharging rate, capacity, and charging and discharging efficiency are modelled. The microgrid can sell or buy electricity from the area electrical power system. A novel method for modeling system reserve requirement with storage devices is presented. The optimal schedule of generation and storage resources in the microgrid including on or off status of generators and optimal dispatch, and charging and discharging status and rate of storage devices is determined. The paper provides versatile strategies through different optimization formulations such as optimal storage sizing for operators to reduce solar generation curtailment due to duck curve phenomena. In this research, without losing generality, the simulation horizon is 24 hours day ahead, and simulation resolution is one hour. The optimization problem is formulated as a mixed integer linear programming problem. Case study results are reported.

Microgrid Operation Optimization Considering Storage Devices, Electricity Transactions and Reserve