Tri-level optimization of industrial microgrids considering renewable energy sources, combined heat and power units, thermal and electrical storage systems

This paper presents a new framework for optimizing the operation of Industrial MicroGrids (IMG). The proposed framework consists of three levels. At the first level, a Profit Based Security Constrained Unit Commitment (PB-SCUC) is solved in order to minimize the total expected cost of IMG via maximizing the IMG revenue by transacting in the day-ahead power market and optimizing the scheduling of the units. In this paper, the tendency of IMG for participating in the day-ahead power market is modelled as a quadric function. At the second level, a Security Constrained Unit Commitment is solved at the upper grid for minimizing the upper grid operation and guaranteeing its security. At this level, the accepted IMG bids in the day-ahead power market would be determined. Finally, at the third level, the IMG operator must settle its units on the basis of its accepted bids. Therefore, a rescheduling problem is solved in the third level. Notably, Renewable Energy Sources (RESs), Combined Heat and Power (CHP) units, thermal and electrical storage systems are considered in the IMG. As the RESs and day-ahead market price have stochastic behaviours, their uncertainty is taken into account by implementing stochastic programming. Further, different cases for grid-connected and island modes of IMG are discussed, and the advantages of utilizing RES and storage systems are given. The simulation results are provided based on the IEEE 18-bus test system for IMG and IEEE 30-bus test system for the upper grid. •A new tri-level framework for optimal operation of an industrial microgrid is presented.•Optimal day-ahead scheduling of Combined Heat and Power is addressed.•Different operational modes of industrial microgrids are discussed.•The impacts of considering the upper grid configuration are demonstrated.