Renewable and Sustainable Energy Reviews 48 (2015) 413–424

Contents lists available at ScienceDirect

Renewable and Sustainable Energy Reviews

journal homepage: www.elsevier.com/locate/rser

Computational optimization techniques applied to microgrids

planning: A review
Carlos Gamarra a, Josep M. Guerrero b,n
a
Department of Electromechanical Engineering, University of Burgos, Spain
b
Department of Energy Technology, Aalborg University, Denmark

art ic l e i nf o a b s t r a c t

Article history: Microgrids are expected to become part of the next electric power system evolution, not only in rural and remote
Received 30 July 2014 areas but also in urban communities. Since microgrids are expected to coexist with traditional power grids (such
Received in revised form as district heating does with traditional heating systems), their planning process must be addressed to economic
14 March 2015
feasibility, as a long-term stability guarantee. Planning a microgrid is a complex process due to existing
Accepted 3 April 2015
alternatives, goals, constraints and uncertainties. Usually planning goals conflict each other and, as a consequence,
Available online 23 April 2015
different optimization problems appear along the planning process. In this context, technical literature about
Keywords: optimization techniques applied to microgrid planning have been reviewed and the guidelines for innovative
Microgrid planning methodologies focused on economic feasibility can be defined. Finally, some trending techniques and
Optimization
new microgrid planning approaches are pointed out.
Planning
& 2015 Published by Elsevier Ltd.
Sizing
Siting
Scheduling
Methodology

Contents

1. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 414
2. Computational optimization techniques: a brief introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 414
3. Optimization techniques applied to microgrid planning problems. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 415
3.1. Power generation mix selection and sizing: economic load dispatch problem basis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 416
3.2. Siting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 417
3.3. Operation scheduling: economic load dispatch problem. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 417
4. Conclusions and future trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 419
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 422

Abbreviations: IEA, International Energy Agency; ICTs, Information and Communications Technologies; CHP, Combined Heat and Power; DER, Distributed Energy Resources;
RES, Renewable Energy Sources; CERTS, Consortium of Electric Reliability Technology Solutions; WOS, Web of Science; LP, Linear Programming; ILP, Integer Linear Programming;
IP, Integer Programming; SA, Simulated Annealing; TS, Tabu Search; GRASP, Greedy Randomized Adaptive Search Procedures; VNS, Variable Neighbourhood Search; ILS, Iterated
Local Search; KKT, Karush-Kuhn-Tucker; ES, Evolutionary Strategy; IMP, Integer Minimization Problem; GA, Genetic Algorithm; PSO, Particles Swarm Optimization; AIS, Artificial
Immune System; MIP, Mixed Integer Programming; MINLP, Mixed Integer Non Linear Problem; ESS, Energy Storage System; MILP, Mixed Integer Linear Programming; ANN,
Artificial Neural Networks; MV, Medium Voltage; Vaccine-AIS, Vaccine-enchanced Artificial Immune System; MDPSO, Modified Discrete Particle Swarm Optimization; VERA,
Versatile Energy Resource Allocation; SQP, Sequential Quadratic Programming technique; DP, Dynamic Programming; MPDP, Multi-Path Dynamic Programming; TOU, Time Of
Use; DC, Direct Current; MADS, Mesh Adaptive Direct Search; MGSA, Modified Gravitational Search Algorithm; EMS, Energy Management System; AMFA, Adaptive Modified
Firefly Algorithm; GSA, Gravitational Search Algorithm; SCSS, Self-adaptive Charged System Search; BFA, Bacterial Foraging Algorithm; CHASE, Competitive Heuristic Algorithm
for Scheduling Energy-generation; MAS, Multi-Agent System; GIS, Geographical Information System; VPP, Virtual Power Plants; DH, District Heating
n
Correspondence to: Department of Energy Technology, Aalborg University, Microgrids Research Programme, Pontoppidanstraede 101, Room 79, 9220 Aalborg East,
Denmark. Tel.: þ45 9940 9726.
E-mail address: [email protected] (J.M. Guerrero).

http://dx.doi.org/10.1016/j.rser.2015.04.025
1364-0321/& 2015 Published by Elsevier Ltd.
414 C. Gamarra, J.M. Guerrero / Renewable and Sustainable Energy Reviews 48 (2015) 413–424

1. Introduction these objectives can be opposed to the others regarding costs of

the system. It is generally accepted that it is necessary to invest in
Modern societies are highly dependent on electric energy supply. renewable power sources and in energy efficiency-based technol-
Following IEA energy statistics, this dependence has been increasing ogies in order to minimize the environmental impact of a micro-
during the last 40 years. Nevertheless, electric power systems have grid. These investments may upgrade the system, but also
not been significantly upgraded for decades. Since new enabling influences economic feasibility. For instance, economic feasibility
technologies for energy systems are being developed (such as ICT, for renewable power sources will depend on different issues such
microCHP, energy storage and renewable energy sources, smart as local electricity costs, space requirements, allocation, initial
meters, etc.), new concepts are appearing in modern power systems. investment, operational and management costs, grid-connection
One of the most popular is the microgrid concept, being a novel charges, taxes and grants. Strong investments are also needed in
power grid structure based on DER, RES, power electronics and ICTs. order to raise the reliability or the quality of supply, but every
One of the earliest definitions of microgrids was made by project has its own economical constraints, especially at the design
CERTS. They define microgrids as clusters of generators, including stage. That is the reason why the microgrid planning process is
heat recovery, storage, and loads, which are operated as single usually based on an optimal or trade-off solution searching process.
controllable entities. In addition a comparison between microgrid A microgrid (considered as a community energy system) usually
concepts is done by Ping et al. in [1] encompasses a mix of traditional an renewable power sources-based
Some microgrid classifications have been presented in techni- technologies. Different authors have previously reviewed planning
cal papers since this concept appeared in 1998, according to Web tools for microgrid-related technologies [7,8]. For example, in [7]
of Science (WOS) references. Lilienthal points out in [2] different Mendes et al. introduce the most common available tools for
criteria for microgrid classification such as: other grids connection, community energy systems planning. They include a survey of
types of energy generation, voltage level of distribution system, these tools, qualifying them as bottom-up, simulation, equilibrium,
peak load, generation capacity, energy production, number of operation optimization and investment optimization tools. Some of
customers served, load management and metering. He also makes these tools are suitable for microgrid planning, such as HOMER,
a proposal for microgrid classification regarding size and grid DER-CAM, EAM, MARKAL/TIMES, RETScreen and H2RES. Also D.
connection, defining four main microgrids types such as: large Conolly et al. presents in [8] a deep comparison of 37 different
grid-connected microgrids, small grid-connected microgrids, large analysis software tools used to evaluate renewable energy sources
remote microgrids and small remote microgrids. integration projects. This paper also includes HOMER, MARKAL/
Due to the modular nature of microgrids, they can operate both TIMES, RETScreen and H2RES.
independently or in conjunction with the main electrical grid. Since a microgrid planning process can be approached as a
Microgrids not only have less financial commitments and require sequence of optimization problems, along technical literature differ-
fewer technical skills to operate, but also rely more on automation ent optimization problems have been considered at different
[3,4]. These advantages make microgrids a suitable solution to gradu- planning levels. In this context, different researches have decided
ally modernize existing power grids. Other advantages for microgrid to reviewed optimization applied to microgrid-related technolo-
establishment are the integration of renewable resources from local gies such as renewable power sources [9–11]. Baños et al. review
areas and the independence of the consumer from large corpora- in [10] optimization methods applied to wind power, solar energy,
tions that manage actual power grids. hydropower, bioenergy, geothermal energy and hybrid systems.
Despite all these advantages, planning a cost-effective microgrid is Different approaches to optimal design of renewable energy based
considered as a complex process due to all alternatives to consider at on hybrid systems are also reviewed in [9] by Erdinc et al. Iqbal
any decision level. Every decision taken in a planning process will et al. present in [11] a generic list of inputs, outputs, objectives and
influence the capacities of the system in a competitive energy constraints resource allocation problem of renewable energy
market. Every planning process is built around specific goals and sources. They also introduce a list of optimization tools, a conflict-
constraints. Not only goals and constraints (such as technical, ing objective matrix, and an optimization techniques review.
environmental, geographical, social and regulatory constraints) Hence, several optimization planning techniques have been
define by themselves the whole framework of the planning applied not only to renewable energy sources, but also to energy
process, but also uncertainties are a key factor in every planning community systems, e.g. district heating [12–15]. Different energy
process. They are a powerful source of risks that system planners community systems may require different optimization techniques
need to avoid, or at least to control. French in [5] identifies several due to system constraints (mainly technical, environmental and
sources of uncertainties in all the main steps of a decision making economical) and uncertainties. The appearance of new computa-
process: uncertainties in modeling, uncertainty expressed during the tional optimization methods and algorithms are allowing new
exploration of the model and uncertainties in the interpretation of approaches to planning problems. The coexistence of these widely
results. But other authors in [6], motivated by practical needs for used mathematical optimization techniques with new ones makes
modeling the decision making problem, have classified every more attractive the idea of reviewing microgrid planning problems.
uncertainties under two main categories:

 External uncertainty: related to the lack of knowledge (about 2. Computational optimization techniques: a brief
the consequences of an action, outside of the control of the introduction
decision-maker), and to the nature of the environment.
 Internal uncertainties: presented in the process of identifica- The term computational optimization refers to a group of
tion, structuring and analysis of the decision-maker (depending mathematical techniques focused on the selection of an optimal
on the decision maker). solution (with regard to some criteria) from a set of available
alternatives. Indeed, optimization includes finding the best available
Beyond these uncertainties, constraints and planning objec- values of some objective function given a defined domain or a set of
tives, every commercial microgrid must be addressed towards two constraints, including a wide range of objective functions and types
main goals: cost efficiency and customer satisfaction. In a micro- of domains. The generalization of optimization theory and techniques
grid, consumer satisfaction means reliability and quality keeping, to other formulations comprises a large area of applied mathematics.
causing as low environmental impact as possible. Hence, some of Baños et al. introduce in [10] different disciplines included into
 C. Gamarra, J.M. Guerrero / Renewable and Sustainable Energy Reviews 48 (2015) 413–424 415

computational optimization such as mathematics to formulate the In addition, other kind of metaheuristics can be considered,
model, operations research to model the system, computer science for such as hybrid and parallel metaheuristics. The hybrid metaheuristic
algorithmic design and analysis, and software engineering to implement combines other optimization approaches with the metaheuristic
the model. one. Meanwhile the parallel metaheuristic is an algorithm that runs
Diwerak describes optimization process as an iterative proce- multiple metaheuristic searches in parallel by using parallel
dure, which is basically composed of an optimizer and a model computing techniques.
[16]. Modeling is defined as the process of identifying objectives, In some cases, the complexity of the problems to solve is so
variables and constraints for a given problem [17]. The optimizer high that no heuristic neither metaheuristic method is able to
invokes the model with a set of values of decision variables, while the obtain accurate solutions in reasonable runtimes. Hence, parallel
model calculates the objective function and constraints. This informa- computing becomes an interesting way to obtain good solutions
tion is utilized by the optimizer to calculate a new set of decisions with reduced runtimes. Parallel computing is a form of computa-
variables. This iterative sequence continues until the optimization tion in which large problems can be divided into smaller ones,
criteria pertaining to the optimization algorithm are satisfied [16]. carrying out many calculations simultaneously. Common types of
Optimization algorithms, iterative and heuristics methods are problems found in parallel computing for microgrid applications
cited among computational optimization techniques. The use of are Monte Carlo Simulation [22–24] and Dynamic Programming
different optimization algorithms depends upon the type of [25,26].
optimization problem. At the same time, there exist many differ- Regarding this brief introduction to computational optimiza-
ent optimization problem classifications, depending on the type of tion, it could be asserted that a holistic real-life microgrid planning
decision variables, objective functions and constraints. Nocedal problem can be considered constrained, stochastic, and multi-
and Wright [17] define different categories such as: continue and objective. But several authors have applied different approaches to
discrete, constrained and unconstrained, global and local, stochas- microgrid planning problems. Those problems will be reviewed
tic [18] and deterministic, multimodal and multiobjective and in the following sections, together with optimization techniques
heuristic and metaheuristic optimization [19]. applied to solve them.
Despite of the name, an optimization method will not always
find the optimum solution. Sometimes an optimization problem
can be unfeasible due to the characteristics of the problem. For 3. Optimization techniques applied to microgrid planning
example, when in a LP optimization problem all the unknown problems.
variables are required to be integers, the problem is called ILP or IP
problem. In contrast to linear programming, which can be solved Community energy systems planning problems have been trad-
efficiently, IP problems are in many practical situations Non- itionally addressed towards cost minimization objectives [27–29].
deterministic Polynomial-time hard (NP-hard) [20]. Algorithms Beyond economic goals, during the planning process other differ-
used to solve a NP-hard problem might need exponential compu- ent goals can be considered, such as total environmental impact,
tation time to obtain the optimum, which leads too high times for power quality and reliability [30].
practical purposes. Thus, during the last years many authors have Even though each microgrid planning process has its own
proposed approximate methods (including heuristic and meta- constraints and specific goals, some planning problems can be
heuristic approaches) to solve optimization problems. considered common to every microgrid, according to the reviewed
Heuristic methods are designed to find a good solution among a technical literature. These planning problems are:
large set of feasible solutions with less computational effort than
optimization techniques [9]. They are useful approaches for opti-  Power generation mix selection and sizing: Microgrid design
mization problems when classic optimization techniques are not engineers are responsible of choosing the best available power
able to find the optimal solution. Besides heuristics there exists system to satisfy demand requirements for a particular area.
metaheuristics. Metaheuristics are used to find an optimal solution Power sources selection requires a deep analysis of suitable
from discrete search-space The point of metaheuristics is that they electric power supplies for microgrid applications in the
can combine more than one heuristic method: the first one can be influence area. Power generation and energy storage equip-
used to find a primary solution and later another heuristic method ment must be sized according the peak-load demand and cost
can be used in order to find a better solution. Perhaps the most effectiveness criteria. Not only a high percentage of the initial
popular way of classifying metaheuristic algorithms is based on investment is done at this stage, but also other critical decisions
trajectory methods vs. population-based methods, but other classi- must be done. Types of fuels suitable for the power plant must
fications such as bio-inspired one [21] are often used: also be selected, which is a critical issue regarding cost
efficiency and reliability of the system. In summary, this
problem must be considered among strategic issues for the
 Trajectory meta-heuristics use a single-solution approach focu- system and there exist three main objectives to fulfill during
sed on modifying and improving a single candidate solution this planning stage: high cost-effectiveness, low environmental
during the search process. The outcome is also a single optimized impact and high reliability.
solution. The main meta-heuristic methods in this category  Siting problem covers power sources allocation and power lines
includes: SA, TS, GRASP, VNS and ILS. layout in order to keep quality constraints. In this process not
 Population-based meta-heuristics use a population of solu- only actual consumers, but also potential customers must be
tions, which evolve during a previously fixed number of considered. As a result power lines must serve customers areas
iterations, returning a population of solutions when the stop and also must be addressed to potential areas. This problem
condition is fulfilled. Perhaps GA and PSO are the most popular can also be considered among strategic level problems. As in
algorithms in this category. sizing problem, initial investment depends directly on final
 Bio inspired metaheuristics: are metaheuristics that mimics the design at this stage. In this planning stage not only it is
nature for solving optimization problems. In [21] Binitha and necessary to provide high cost-effectiveness and high reliability
Shatia classify these techniques into three main types: Evolu- as in the previous one, but also low power losses are required.
tionary algorithms, Swarm intelligence and Ecology-based  Scheduling is the main problem of tactical planning level,
algorithms. because it is focused on available resources planning, such as
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generators and storage devices. Scheduling problem is aimed at algorithm is used to solve the optimal sizing problem for renew-
minimizing operational costs, environmental impact and qual- able energy generations and combined heat and power (CHP)
ity keeping while demand is covered. Optimal operational units in a hybrid energy microgrid in [38]. Stochastic variability of
conditions for different microgrid configurations are searched renewable energy resources and the heat and power requirements
using different optimization techniques towards one or more are considered in order to meet customer requirements with
than one objective optimization. minimum system annual cost.
Energy efficiency and renewable power sources are nowadays
These stages are common in every feasibility study when the guidelines to minimize the environmental impact of a micro-
planning a microgrid. A survey of optimization techniques taking grid. But since renewable power sources are not always ready to
part in these stages is presented in this section. In addition, some produce energy at their peak power, energy storage becomes an
related mathematical techniques such as simulation, fuzzy logic important topic in microgrids. Thus, sizing problem concerns not
and forecasting, including uncertainty management, will also be only to power sources but also to energy storage devices. These
presented. devices must be sized and located regarding cost-effectiveness,
environmental impact, reliability and quality goals. This topic is
3.1. Power generation mix selection and sizing: economic load introduced by Bahramirad et al. in [39] in which the optimal ESS
dispatch problem basis sizing problem is proposed both for initial investment and expan-
sion problems. The problem is analyzed from an economical point
Economic issues are a high priority in the microgrid planning in of view, using a MIP approach in order to minimize investment in
order to address long-term establishment for the system. The storage devices and microgrid operational costs.
successful deployment of a microgrid depends on the economic Chen et al. propose in [32] a method based on the cost-benefit
success of small clusters of mixed technology generators, grouped analysis for optimal sizing of an energy storage system in a
with storage devices and other reliability-based factors such as microgrid. Time series and Feed-forward neural network techniques
fuels allowed. Main problems in technical papers at strategic are used for forecasting the wind speed and solar radiations
planning level are power sources selection [31] and sizing [9], respectively. The main problem is formulated as a MILP, which is
energy storage devices selection and sizing [32] and siting. solved in AMPL (A Modelling Language for Mathematical Program-
Determination of the real power outputs for the generators so ming). A specific Artificial Neural Network algorithm is used for
that the total cost of the system is minimized is also known as the production forecasting, meanwhile a classical approach is used for
problem of economic load dispatch. As it will be described below, the optimization problem. An heuristic method is again used in
power mix selection and sizing problems are addressed towards [40] by Navaeefard et al. They introduce uncertainty in a microgrid
ELD problem. sizing problem that includes photovoltaic PV/wind hybrid system
Traditional optimization techniques are used in [33] by Vafaei and with storage energy systems. Wind power uncertainty is proposed
Kazerani, selecting and sizing, different power generation technolo- and reliability index are considered as a constraint. PSO algorithm
gies and storage devices for a microgrid, in order to minimize is used to obtain global optimal solutions using MATLAB.
operational costs. The optimization model is formulated as a MIP In [41] Menniti et al. propose a methodology to determine the
(Mixed Integer Programming) problem in GAMS environment. Also, optimum sizing and configuration of a grid-connected hybrid
a classical optimization method is reviewed towards microgrid Photovoltaic/Wind system, including energy storage systems and
modeling purposes in [34] by Augustine et al. They perform the ensuring that the system total cost is minimized while guarantee-
power mix selection of four different types of microgrids by using ing a highly reliable source of load power. They base their analysis
the Reduced-Gradient Method for Economic Dispatch algorithm and on simulation techniques.
Matlab software in order to simulate the system. In this paper the Some of these mathematical programming methods are nowa-
final selection is based on economic dispatch costs, taking into days implemented by software tools, which are widely used in
account renewable energy sources penetration, costs and receipts microgrid planning. Most of these tools, instead of not being
associated. specifically focused on microgrids, are suitable for microgrid
Han et al. in [35] solve the ELD problem using the Karush– modeling. ETAP is introduced as one of these tools in [42]. A
Kuhn–Tucker (KKT) conditions. Allowing inequality constraints, comparison between two different technology selection and sizing
the KKT approach to nonlinear programming generalizes the softwares such as HOMER and WEBOPT is done by Litchy et al. in
method of Lagrange multipliers, which allows only equality con- [43]. Since WebOpt is based in a MILP optimization, HOMER is
straints. The KKT approach guarantees to find the true optimum based on alternatives simulation, creating a list of feasible config-
(versus heuristic search approaches), but is also readily capable of urations sorted by net present cost. DER-CAM software is the main
being extended with further realistic constraints/costs, versus tool for a commercial-building microgrid technology selection and
purely analytic approaches. operation in [44]. The output from DER-CAM is a cost-minimizing
In [36] Logenthiran compares a classical Integer Minimization equipment combination for a building, including CHP equipment
Problemn (IMP) with Evolutionary Strategy (ES) method (a generic and RES. The results of DER-CAM suggest not only an optimal
population-based optimization metaheuristic algorithm) in order (potentially mixed technology) microgrid, but also an optimal
to size power equipment for an islanded microgrid. The optimiza- operating schedule that can serve as the basis for a microgrid
tion aim is to minimize the sum of the total capital, operational control strategy.
and maintenance cost of DERs. HOMER software is widely used with microgrid modeling
Heuristics are widely used in sizing and power generation mix purposes. It is used by Nayar et al. in [45] in order to define a
selection. Erdinc in [9] highlights some heuristic optimization layout of power plants for an hybrid microgrid in remote islands in
techniques for hybrid renewable energy systems sizing such as: Republic of Maldives. A stand-alone microgrid is also designed in
GA, PSO, SA and some promising techniques such as Ant Colony [46] for Pulau Ubin Island of Singapore. In this paper authors
and AIS. In [37] Tafreshi et al. model a microgrid using MATLAB simulate different systems using HOMER in order to fit the needs
and GA to solve the sizing problem with some restrictions. They with optimum cost and available renewable sources, including
evaluate the system considering costs and benefits such as: the storage units sizing. A similar work is presented in [47], selecting
cost function annualized capital, replacement, operational, main- and sizing power generators for a rural microgrid in India.
tenance, fuel costs and annual earning by selling power to grid. SA Environmental objectives can also be considered using this
 C. Gamarra, J.M. Guerrero / Renewable and Sustainable Energy Reviews 48 (2015) 413–424 417

modeling software. In [48] Su et al. study the planning and the Ɛ-constrained technique to obtain a compromised non-inferior
operation of micro-source generators to accommodate the high solution.
demand of renewable energy and the environment policy. As it has been described in [56], heuristics have also been
applied to siting problems. Basu et al. selects in [57] bus locations
by loss sensitivity analysis. PSO is implemented using MATLAB in
3.2. Siting order to maximize the value of benefit to cost ratio (BCR). Cost of
electricity generation is minimized, not only using CHP-based DER
Nowadays there exist many papers on allocation of energy technology but also deploying them in the microgrid system
resources, not only for DERs and RES, but also for energy commu- regarding their type, capacity-size and bus-location. Celli et al.
nity systems, such as district heating [49]. However, there exist propose in [58] a new software procedure based on a GA, capable
two main approaches: power lines layout and equipment siting to establish the optimal distributed generation allocation on an
(power and storage equipment). Both are focused on power loss existing medium voltage (MV) distribution network, considering
minimization and quality keeping goals. technical constraints of real size scenarios with several hundreds
Cui et al. presents in [50] a traditional approach to design cost- of nodes. In [59] Carpinelli presents a three step procedure, based
optimized microgrid architectures subject to reliability constraints. on GA, applied to establish the best distributed generation siting
The method is based on DP and consists on determining the optimal and sizing on an MV distribution network.
power line layout between microsources and load points, given Vallem et al. in [60,61] describe a method for siting of DER
their locations and the rights of way for possible interconnections. within the framework of an optimal microgrid architecture
Khodaei presents in [51] an algorithm for microgrid planning as regarding minimum cost interconnection, sizing, and siting of
an alternative to the optimization of traditional electric power DER subject to stipulated global and local reliability criteria. The
systems regarding generation and transmission. The optimization siting problem considers factors like deployment costs and savings
problem is decomposed into a planning problem and an annual gained by the use of CHP and it is formulated as a SA optimization
reliability problem. The objective is to minimize the total system problem. An optimal economic and allocation model of an indus-
planning cost, and a software called Versatile Energy Resource trial photovoltaic microgrid is proposed in [62] by Mao. The
Allocation (VERA) is used. A prediction of demand coverage based economic indexes analyzed include energy cost, emission reduc-
on local weather conditions is also performed. Nonlinear aspects tion benefits and payback period. The optimization problem is
of the problem are solved with Sequential Quadratic Programming solved using PSO optimization technique. Tan considers necessary
technique (SQP). in [63] to integrate microgrid load dispatch and network reconfi-
In [52] Verda and Ciano deals with the choice of the optimal guration together. This results in a non-convex non-linear pro-
configuration of a district heating network to be built in an urban blem. Four evolution computational optimization methods have
area. Users to be connected to the network are determined and an been compared in this paper such as GA, PSO, AIS and Vaccine-AIS.
economic objective function is optimized using SA. Despite this is
not a specific microgrid planning problem, a similar method could
be used when a microgrid has to deal with competence in an urban 3.3. Operation scheduling: economic load dispatch problem
area. The technique Modified Discrete Particle Swarm Optimization is
used in [53] by Wishart et al. to plan a distribution system upgrade The control strategy of each microgrid has a great impact on
over a 20 year period. The objective is to minimize the system total the energy contribution of the different DGs. The Economic
lifetime cost regarding: line loss, reliability costs and investment Dispatch Problem is usually solved by mathematical computing
needed in DGs, capacitors, lines, and transformers. The bus voltage, techniques and specific computer software. Final scheduling must
feeder current and the DG output power are incorporated in the fulfill system goals in the framework shaped by demand, opera-
optimization procedure as constraints. Kirthiga et al. in [54] propose tional and system constraints of the available resources and
a methodology to transform an existing radial distribution network corresponding transmission capabilities. In [64] Colson and Nehrir
into an autonomous microgrid, in which sizing and siting strategies reviewed microgrid management challenges emphasizing tasks in
for distributed generators and structural modifications for autono- DER and CHP integration, power management and control as the
mous microgrids are developed. The optimal sites and correspond- main fields of development.
ing sizes of renewable resources for autonomous operation are A classical approach for other energy community systems is
obtained using PSO and GA. An optimization problem for system presented in [65]. A Combined Cooling and Heating Power model of
losses and costs is formulated, considering quality constraints, a rural microgrid is built and optimized by using a MINLP optimiza-
generators loads and balance. tion process to improve system efficiency of energy utilization and
Regarding microgrids siting problems, some multi-objective other goals with a BONMIN solver. The whole system model is
optimization algorithms are combined with sensitivity analysis. mathematically programmed into the platform of GAMS. Again
For example, in [55] Buayai et al. carry out using MATLAB a two MINLP is used in [66]. Hernandez-Aramburo et al. try to minimize
stage multi-objective optimization process for MG planning in two the fuel consumption rate for a two-generation unit microgrid,
primary distribution systems. In the first stage, loss sensitivity while constraining it to fulfill the local energy demand (both
factor is proposed to identify the MG area in a primary distribution electrical and thermal) and provide a certain minimum power
system. In the second stage, a Pareto-based NSGA-II is proposed to reserve. Stluka et al. focus in [67] the problem of powering a set
find locations and sizes of a specified number of distributed of buildings through a microgrid, formulating a cost-minimizing
generators within microgrids. Multi-objective functions include problem. Load forecasting and sitting problems are solved using a
system real power loss, load voltage deviation and annualized MINLP approach with the optimization software VERA.
investment cost. A fuzzy decision making analysis is used to obtain In fact, as it can be seen in [68] and [69], classical optimization
the final trade-off optimal solution. Another multi-objective methods such as IP and LP are still a good approach depending on
method is proposed by Celli et al. in [56] to solve sizing and siting the problem definition, being GAMS a widely used modeling
problems in distribution networks. The objective is to achieve the system. In both papers the optimization model for a microgrid
best alternative between cost of network upgrading, cost of power based in a CHP generation unit operation is formulated. LP is also
losses, cost of energy not supplied, power quality cost and the cost used in [70] by Quiggin et al. to model a microgrid including a mix
of energy required by the served customers. Using a GA, they apply of renewable generation technologies, energy storage and DR,
418 C. Gamarra, J.M. Guerrero / Renewable and Sustainable Energy Reviews 48 (2015) 413–424

based on real world data of residential energy consumption and modified multi-objective algorithm based on the MGSA to find
weather variables. Pareto-optimal front of the operation management problem.
DP is used to solve optimization problems in [71] by Sobu and Forecasting techniques have been introduced in optimization
in [72] by Nguyen, et al. Sobu defines a dynamic optimal schedule problems due to stochastic nature of demand and renewable
management method for an isolated or grid-connected microgrid energy resources. Jaganmohan et al., design in [83] a system that
system, considering forecast errors with uncertainties of solar forecasts the short (daily), medium (seasonal) and long term
radiation, wind speed and local user demand. Nguyen et al. try (yearly) load demand and the availability of energy resources at
to maximize the profit that owner might achieve from energy the microgrids. They use ANN feature to forecast both load and
trading in a day, either in isolated or grid-connected microgrids. availability of energy resources at microgrids in different scenarios
Huang et al. consider tariffs inside the ELD problem in [73]. A like daily, seasonal, and yearly. The layered ANN architecture is
power-scheduling problem, solved by a MPDP approach, and developed and trained with Levenberg-Marqurardt Back Propaga-
considering load/generation changes and TOU tariff for a low tion Algorithm. Other authors use in [84,85] forecasting techni-
voltage DC microgrid is developed. ques based on ANN. Although forecasting technique changes from
Mohamed and Koivo propose in [74–77] different multiobjective some papers to others, the most common objective of these
algorithms, which are also used to determine the optimal operat- techniques is to forecast both load and availability of energy
ing strategy for a microgrid such as: SQP, GA, and MADS. MADS is a resources, as in [86].
generalization of the pattern search algorithm. The aim of these In [87] Chen et al. propose one unified model so that smart
papers is to minimize the cost function of the system. Multi- management of ESS, economic load dispatch and operation optimi-
objective optimization based on modified game theory is applied zation of distributed generation are simplified into a single-
in [76] to the environmental and economic problem of the MG. objective optimization problem. They use an improved GA to solve
Mahmoud introduces in [78] fuzzy logic techniques for storage the problem. Same algorithm is used by Chansong et al. in [93]
devices scheduling. A fuzzy logic based adaptive charging price is to determine an optimal schedule of all available units over a
set for charging the storage device based on the microgrids local planning horizon so as to meet all system, plant and unit con-
generation price at the time of charging, and the amount of daily straints, as well as meet the load and ancillary service demands. An
storage device participation in the microgrid dispatch. A multi- ANN power forecasting is used to predict hourly power outputs. A
objective PSO method is applied to optimize the energy dispatch GA is developed to make good operation and trading decisions
for the managed microgrid. Kanchev et al. in [79] presents a while meeting constraints.
microgrid energy tactical optimization in the presence of PV-based Obara and El-Sayed in [89] develop an optimal operation algo-
active generators. The optimization objective function is focused rithm of a compound microgrid using numerical weather informa-
on the CO2 equivalent emissions (environmental criteria), the fuel tion (NWI) which is freely available and a GA is developed to
consumption (economical criteria) or a trade off between these minimize system fuel consumption. Ricalde et al. introduce in [90]
two. This study is developed using fuzzy logic theories and PSO. some forecasting methods depending on temporal range of look-
Tools as MATLAB, TRNSYS, GenOpt and TRNOPT are proposed to ahead times, and they address ANN as excellent approximations
solve this kind of problems [46,81,86]. for nonlinear and stochastic models.
Niknam et al. propose in [82] a probabilistic approach for Operation of a microgrid with more than two DER units,
economic/emission management of microgrids from a probabilistic especially in an autonomous mode, requires an Energy Manage-
optimization method, including uncertainties covering and a ment System (EMS). Fast response of the EMS is more critical for a

Fig. 1. Energy management system.

 C. Gamarra, J.M. Guerrero / Renewable and Sustainable Energy Reviews 48 (2015) 413–424 419

microgrid compared with a conventional power system. The real- AMFA is employed to achieve an optimal operational planning
time management block receives the present and the forecasted with regard to cost minimization. Niknam et al. introduce in
values of load, generation, and market information to impose [103,104] two different probabilistic algorithms in order to opti-
appropriate controls on power flow, output generation, consump- mize a microgrid operation: a self-adaptive mutation technique of
tion level of the utility grid, dispatchable sources, and controllable the GSA and a self-adaptive Charged System Search called SCSS,
loads, respectively, as it is shown in Fig. 1. An EMS should ensure a devised to upgrade the original CSS algorithm.
set of control function, such as supply of electrical energy, Vahedi et al. study in [105], the optimal operating strategy and
participation in the energy market, pre-specified service level for cost optimization scheme using Bacterial Foraging Algorithm
critical loads, black start subsequent to a failure, provision for (BFA). Lu et al. study in [106] propose a class of competitive online
ancillary services, and so forth. The objectives are achieved algorithms, called CHASE, which tracks the offline optimal in an
through either a centralized or a decentralized supervisory control online fashion. They also extend these algorithms to intelligently
that includes three hierarchical levels: leverage on limited prediction of the future, such as near-term
demand or wind forecast.
 distribution network and market operator (PCC Level) Tan et al. in [107] search for an integrated solution that takes
 local controllers (LCs) associated with each DER unit and/ care of both microgrid load dispatch and network reconfiguration
or load problems. The stochastic nature of wind, PV and load is taken into
 Customer level associated to demand-based control strategies consideration and the bio-inspired optimization scheme Vaccine-
AIS is adopted to solve the problem. A bio-inspired algorithm
Trends in microgrid control have been recently pointed out by description is elaborated by Binitha and Sathya in [21]. In [108] a
D. Olivares et al. in [91]. They also present a brief review of the new bi-level prediction strategy is proposed for short-term load
existing EMS architectures for microgrids in [92], identifying the forecasting of microgrids by Amjady et al. They propose a strategy
main advantages of each approach, and have proposed a centra- composed of a feature selection technique and a forecast engine
lized EMS architecture for implementation on isolated microgrids (including NN and EA) in the lower level as the forecaster and an
in stand-alone mode of operation. Olivares D. y Cañizares search enhanced differential evolution algorithm in the upper level for
for a proper dispatch of the energy power and storage units, optimizing the performance of the forecaster.
designing a centralized energy management system in [93]. In this In order to manage all the aspects that influence a microgrid
paper, energy management problem is decomposed into unit deployment, the design of multi-agent and energy management
commitment and optimal power flow problems in order to avoid systems is proposed by some authors towards an optimal microgrid
a mixed-integer non-linear formulation. control. Multi-agent systems in microgrid applications are review
Some authors look for new approaches for power sources schedul- by Kulasekera y Hemapala in [109]. Hatziargyriou develops in
ing in microgrids. A calculation method of microgrid surplus load is [110] a centralized control for optimizing microgrids operation
proposed by Chen et al. and the features and influencing factors of regarding information exchange, market policies, demand-side
its ultra-short-term forecasting are discussed in [94]. A simulation bidding and security, and quantifies economical, environmental
model of microgrid with wind farms, micro-turbines and fuel cells and operational benefits for centralized controlled-microgrids in
is established. A similar vision of the same problem, including [111]. But the same authors have also published some papers
demand side management is introduced by Palma-Behnke et al. in about agent-based control for virtual power plants [112] and
[95]. An energy management system (EMS) minimizes the opera- microgrids [113–116]. They present in a MAS-based control archi-
tional costs while supplying the load demands. Also, a neural tecture for an islanded microgrid, and compares it with a cen-
network method for a two days ahead electric consumption tralized approach. Along these papers, these authors developed an
forecasting is presented. agent control structure focused in allowing the agents to learn and
Celli et al. in [96] develop a novel EMS that uses a Multi Layer adapt to the environment based on a reinforcement learning
Perceptron Neural Network for the optimal scheduling of gen- algorithm. Agents should be capable to learn to cooperate between
erators in an industrial park. They train the Neural Network by each other and to solve a problem that requires planning for the
using information about energy price, weather conditions and the future in a stochastic environment without the existence of a
forecasts on the energy and thermal load demand. central controller.
Kanchev in [97] proposes a deterministic EMS for a microgrid, Funabashi et al. in [117] propose a microgrid control system
including advanced PV generators with embedded storage units using multi-agent technologies. In this control system, operation
and a gas microturbine. Borghetti describes in [98] the functions of planning is realized based on generation and load forecasting by
an energy resources scheduler implemented in a microgrid man- using ANN and fuzzy systems.
agement system. The scheduler periodically updates the set points
of DERs regulators in order to achieve economic, reliability and
power quality objectives, starting from the load and renewable 4. Conclusions and future trends
production forecasts and from the results of the system state
estimation. This paper provides an overview of the latest research devel-
Chakraborty and Simoes in [99] and in [100], focus on renew- opments concerning the use of optimization algorithms to aid
able energy sources integration in a distributed generation system, microgrid planning. Since a general approach to microgrid plan-
implementing a distributed intelligent EMS to optimize operating ning has been developed, economic feasibility has been taken into
costs. A Fuzzy ARTMAP Neural Network is used to predict hourly account along the paper as a key factor. This survey of mathema-
day-type outputs, based on which generation can be forecasted. tical methods applied to microgrid planning can be useful for
Same authors introduce in [101] a Distributed Intelligent Energy microgrid planners, or even to introduce power system engineers
Management System (DIEMS) to optimize operating costs of a and young researchers in this field. After this review, some
representative PV-based microgrid. conclusions will be presented.
A probabilistic EMS based on an efficient Point Estimate First of all, reviewed papers are classified in Table 1 regarding
Method is proposed in [102] by Mohammadi. This method models the planning problem they try to solve and the optimization
the uncertainty in the power generation of the wind farms and the approach (classical vs multi-objective optimizacion). As it has
PV systems, the market prices and the load demands. Moreover, an been described in this table, linear optimization can be considered
420 C. Gamarra, J.M. Guerrero / Renewable and Sustainable Energy Reviews 48 (2015) 413–424

a good approach depending on the objective and constraints. research papers trend to use heuristic optimization. Heuristics,
Linear and non-linear problems are faced in technical papers in as it is shown in Table 2, have become very popular in energy
order to minimize operational costs or initial investment in planning and designing problems such as GA, PSO and SA. As a
generators and energy storage devices. Many optimization meth- consequence some new bio-inspired heuristics have been recently
ods are based on traditional approaches, such as mixed-integer applied to microgrid planning such as AMFA, BFA, AIS and Vaccine-
and interval linear-programming, while a growing number of AIS. GA and PSO are widely used algorithms for planning purposes in

Table 1
MG planning problems, methods and references regarding single or multiple objective optimization.

Approach Method-algorithm Main problem References

Single-objective optimization MILP Power generation mix selection and sizing [32,43,44]
Lagrange multipliers-KKT conditions Power generation mix selection and sizing [35]
Reduced Gradient Method Storage devices mix selection and sizing [34]
MIP Power generation mix selection and sizing [33,36]
Storage devices mix selection and sizing [39]
SQP Siting [51]
Operation scheduling [77]
DP Siting [50]
Operation scheduling [71,72]
MINLP Operation scheduling [65,66,67]
IP Operation scheduling [68]
LP Operation scheduling [69,70]
MPDP Operation scheduling [73]
Multi-objetive optimization NSGA-II Siting [55]
Simulation-accounting Power generation mix selection and sizing [41,42,45,46,47,48]
Storage devices mix selection and sizing [41]
Operation scheduling [42,96,97,98,99,100,101,102]
Game theory Operation scheduling 76

Table 2
MG planning problems, methods and references using heuristic optimization.

Heuristic and metaheuristic optimization EA Power generation mix selection and sizing [36]
GA Power generation mix selection and sizing [37]
Siting [54,56,58,59,63]
Operation scheduling [75,88,89,90]
SA Power generation mix selection and sizing [38]
Siting [52,60,61]
PSO Storage devices sizing [40]
Siting [54,57,62,63]
Operation scheduling [77,79,80]
AIS Siting [63]
VACCINE-AIS Siting [63]
Operation scheduling [107]
MDPSO Siting [53]
MADS Operation scheduling [74,78]
MGSA Operation scheduling [82]
AMFA Operation scheduling [102]
GSA Operation scheduling [103]
SCSS Operation scheduling [103]
BFA Operation scheduling [105]
CHASE Operation scheduling [106]

Table 3
References per planning problem and optimization approach.

Approach Main problem Papers

Single objective optimization Power generation mix selection and sizing [32,33,35,36,43,44]
Storage generation mix selection and sizing [34,39]
Siting [50,51]
Operation scheduling [65,66,67,68,69,70,71,72,73,77]
MO optimization Power generation mix selection and sizing [41,42,45,46,47,48]
Storage generation mix selection and sizing [41]
Siting [55]
Operation scheduling [42,76,96,97,98,99,100,101,102]
Heuristic optimization Power generation mix selection and sizing [36,37,38]
Storage generation mix selection and sizing [40]
Siting [52,53,54,56,57,58,59,60,61,62,63]
Operation scheduling [74,77,78,79,82,102,103,105,106,107]
 C. Gamarra, J.M. Guerrero / Renewable and Sustainable Energy Reviews 48 (2015) 413–424 421

microgrids. Operation scheduling is the most popular problem proposed for some specific islanded microgrid scenarios with
regarding economic feasibility issues for microgrids, as it has been defined constrains and uncertainties, such as for instance in
summarized in Table 3, in which a detailed list of references is military campus [118]. But suitable conditions for the long-term
presented. Regarding modern mathematical techniques, it can be success of a commercial microgrid have not been still addressed.
highlighted that parallel processing has not been deeply explored The more the real-market restrictions, uncertainties and optimiza-
for microgrid planning purposes. tion problems they can address, the better the conditions for a
The second conclusion of this review paper is about planning microgrid establishment will be defined. In conclusion, more
methodology. When reviewing technical literature about commu- complete optimization and multi-criteria approaches towards
nity systems planning, some defined problems may appear, as it is market-oriented solutions are expected to appear, focused not
shown in fig. 2. In this paper four common problems have been only on newer and better approaches to solve single planning
identified for an economic feasibility approach to microgrids: problems, but also to solve global ones.
power mix selection, sizing, siting and scheduling. Most researchers Finally, some trends in microgrid planning are described. Some of
propose techniques to solve these individual problems, but real- these new approaches to planning process may include GIS based
world planning problems require wider and deeper approaches. techniques [50,55,119,120] and new algorithms associated to
Since microgrid planning problems must be considered in an optimization, forecast and other microgrid related aspects. Other
aggregated way. Planning and feasibility guidelines have been energy community systems, such as virtual power plants or

Fig. 2. Microgrid planning process scheme.

422 C. Gamarra, J.M. Guerrero / Renewable and Sustainable Energy Reviews 48 (2015) 413–424

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