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Optimal operation of the battery energy storage system (BESS) is very important to reduce the running cost of a microgrid. Rolling horizon-based scheduling, which updates the optimal decision based on the latest information, is widely applied to microgrid operation. In this paper, the optimal scheduling of a microgrid, considering the energy cost, demand charge, and the battery wear-cost, is formulated as a mixed integer linear programming (MILP) problem. This paper also deals with two practical and important issues when applying the rolling-horizon strategy to BESS scheduling. First, to mitigate the high dependency of the load forecast on the latest information, a confidence weight parameter method is proposed. Second, a new target state of charge (SOC) assignment method is proposed to avoid the depletion of BESS and to reduce the wear-cost of the battery. In addition to the optimal scheduling, a novel real-time control scheme is proposed to mitigate the effect of the forecast uncertainty. The performance of the proposed methods is tested with data measured from a campus microgrid.

Optimal Scheduling and Real-Time Control Schemes of Battery Energy Storage System for Microgrids Considering Contract Demand and Forecast Uncertainty