Risk-averse operation of microgrids in distribution systems with price-responsive demands

This paper introduces a decentralized, risk-averse operational framework for interconnected, unbalanced microgrids and the distribution system. Distribution system operation is modeled as a risk-averse optimization problem using conditional value-at-risk measures to enhance robustness against uncert...

Full description

Saved in:
Bibliographic Details
Main Authors: Seyed Saeed Fazlhashemi, Mohammad E. Khodayar, Mostafa Sedighizadeh, Mahdi Khodayar
Format: Article
Language:English
Published: Elsevier 2025-07-01
Series:International Journal of Electrical Power & Energy Systems
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S0142061525001322
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1849727872634191872
author Seyed Saeed Fazlhashemi
Mohammad E. Khodayar
Mostafa Sedighizadeh
Mahdi Khodayar
author_facet Seyed Saeed Fazlhashemi
Mohammad E. Khodayar
Mostafa Sedighizadeh
Mahdi Khodayar
author_sort Seyed Saeed Fazlhashemi
collection DOAJ
description This paper introduces a decentralized, risk-averse operational framework for interconnected, unbalanced microgrids and the distribution system. Distribution system operation is modeled as a risk-averse optimization problem using conditional value-at-risk measures to enhance robustness against uncertainties in price-responsive demand bids. Microgrid operations are structured as scenario-based robust optimization problems, capturing the worst-case scenarios for demand and solar PV generation. Non-convex energy management problems within the distribution system and microgrids are reformulated as convex optimization problems using the moment relaxation technique. A decentralized scheme addresses heterogeneous uncertainties in microgrids and the distribution system. The framework is applied to two case studies: a distribution system connected to two microgrids and a modified IEEE 123-bus distribution system connected to four microgrids. The risk-averse optimization solution is compared to that of a stochastic programming approach. For the IEEE 123-bus system, the results show that introducing risk aversion decreases social welfare by 44.63% compared to the risk-neutral solution but improves the conditional value-at-risk by 44.04%. Additionally, the impacts of dispatchable resources, including energy storage and distributed generation, on operation cost, phase balancing, and uncertainty control at the main feeder are examined. It is shown that incorporating a statistical distance metric to regulate power flow at the main feeder decreases social welfare by 6.48%.
format Article
id doaj-art-fa45a9a82cfa4aafa7d753ec2e54d113
institution DOAJ
issn 0142-0615
language English
publishDate 2025-07-01
publisher Elsevier
record_format Article
series International Journal of Electrical Power & Energy Systems
spelling doaj-art-fa45a9a82cfa4aafa7d753ec2e54d1132025-08-20T03:09:44ZengElsevierInternational Journal of Electrical Power & Energy Systems0142-06152025-07-0116811058110.1016/j.ijepes.2025.110581Risk-averse operation of microgrids in distribution systems with price-responsive demandsSeyed Saeed Fazlhashemi0Mohammad E. Khodayar1Mostafa Sedighizadeh2Mahdi Khodayar3Department of Electrical and Computer Engineering, Southern Methodist University, TX, USADepartment of Electrical and Computer Engineering, Southern Methodist University, TX, USA; Corresponding author.Southwest Power Pool, AR, USADepartment of Computer Science, University of Tulsa, OK, USAThis paper introduces a decentralized, risk-averse operational framework for interconnected, unbalanced microgrids and the distribution system. Distribution system operation is modeled as a risk-averse optimization problem using conditional value-at-risk measures to enhance robustness against uncertainties in price-responsive demand bids. Microgrid operations are structured as scenario-based robust optimization problems, capturing the worst-case scenarios for demand and solar PV generation. Non-convex energy management problems within the distribution system and microgrids are reformulated as convex optimization problems using the moment relaxation technique. A decentralized scheme addresses heterogeneous uncertainties in microgrids and the distribution system. The framework is applied to two case studies: a distribution system connected to two microgrids and a modified IEEE 123-bus distribution system connected to four microgrids. The risk-averse optimization solution is compared to that of a stochastic programming approach. For the IEEE 123-bus system, the results show that introducing risk aversion decreases social welfare by 44.63% compared to the risk-neutral solution but improves the conditional value-at-risk by 44.04%. Additionally, the impacts of dispatchable resources, including energy storage and distributed generation, on operation cost, phase balancing, and uncertainty control at the main feeder are examined. It is shown that incorporating a statistical distance metric to regulate power flow at the main feeder decreases social welfare by 6.48%.http://www.sciencedirect.com/science/article/pii/S0142061525001322Risk-averse optimizationDecentralized operationEnergy storageMicrogridsUnbalanced distribution system
spellingShingle Seyed Saeed Fazlhashemi
Mohammad E. Khodayar
Mostafa Sedighizadeh
Mahdi Khodayar
Risk-averse operation of microgrids in distribution systems with price-responsive demands
International Journal of Electrical Power & Energy Systems
Risk-averse optimization
Decentralized operation
Energy storage
Microgrids
Unbalanced distribution system
title Risk-averse operation of microgrids in distribution systems with price-responsive demands
title_full Risk-averse operation of microgrids in distribution systems with price-responsive demands
title_fullStr Risk-averse operation of microgrids in distribution systems with price-responsive demands
title_full_unstemmed Risk-averse operation of microgrids in distribution systems with price-responsive demands
title_short Risk-averse operation of microgrids in distribution systems with price-responsive demands
title_sort risk averse operation of microgrids in distribution systems with price responsive demands
topic Risk-averse optimization
Decentralized operation
Energy storage
Microgrids
Unbalanced distribution system
url http://www.sciencedirect.com/science/article/pii/S0142061525001322
work_keys_str_mv AT seyedsaeedfazlhashemi riskaverseoperationofmicrogridsindistributionsystemswithpriceresponsivedemands
AT mohammadekhodayar riskaverseoperationofmicrogridsindistributionsystemswithpriceresponsivedemands
AT mostafasedighizadeh riskaverseoperationofmicrogridsindistributionsystemswithpriceresponsivedemands
AT mahdikhodayar riskaverseoperationofmicrogridsindistributionsystemswithpriceresponsivedemands