Optimal operation of energy resources in a micro-grid

This paper presents the development of a dynamic optimization model to manage the generated energy in a micro-grid. The micro-grid consists of the following components: a wind energy system, an energy storage element, a load, and the interconnection to the utility grid. The optimization scheme considers the minimization of the associated cost due to the purchase of energy from the utility grid and simultaneously maximizing the profits associated with the sale of the generated energy to the utility grid. The optimization model considers the dynamics of charge and discharge of the storage element, energy prices and forecasting for wind energy, buying and selling prices and load demand energy, such that an efficient use of energy generated in the micro-grid can be achieved. It is important to include the dynamics of the storage element for the development of the optimization model, since it allow us to store or extract energy in accordance of the micro-grid requirements to maximize the profits. The proposed optimization model serves as an automated mechanism to manage the energy in a micro-grid, which decides the amount of energy to be sent or extracted from the utility grid and to the storage element while supplying the local demand with minimum cost.