An MILP-Based Model for Hybrid Renewable Energy System Planning Considering Equipment Degradation and Battery Lifetime

Abstract

Planning for hybrid renewable energy system involves designing the sizes of the distributed energy resources (DERs) and the timing of the expansion of the system. This paper presents a mathematical model for microgrid design that is based on mixed integer linear programming. The model is formulated to account for variable battery lifetime and the performance degradation of the generation and battery technologies. The model is solved using an MILP tool to minimize the net present cost for a long-term operation with multi-year investment option in order to address the performance degradation of the DERs. The simulation results show reduction of the initial capital costs when compared to typical models. With the salvage values and overhead costs accounted in the net present costs, extending the planning horizon does not change the optimum sizes.