Modeling and optimal operation of distributed energy systems via Dynamic Programming

This paper presents a hierarchical optimization method for determining optimal operation of a distributed energy system which consists of a distribution network and customers with dispersed generation and storage systems. The optimal operation problem of a distributed energy system is divided into two subproblems; optimal operation of a dispersed energy system for a customer and optimal operation of power flow on distribution network. While Dynamic Programming (DP) is used for solving optimal operation of a dispersed energy system for a customer, successive approximation method is applied for obtaining optimal operation of power flow on distribution network. The practicability and generality of the developed hierarchical optimization method for determining optimal operation of a distributed energy system are evaluated through some simulations using some simple models of a distributed energy system consisting of a distribution network and customers with dispersed generation and storage systems.