Canadian Journal on Electrical and Electronics Engineering Vol. 3, No.
3, March 2012
Optimal Short-term Planning of a Stand-Alone
Microgrid with Wind/PV/Fuel
Cell/Diesel/Microturbine
Esmaeil Alikhani, Mohammad Ahmadian, Ahmad Salemnia
Abstract — Microgrids are low voltage intelligent
distribution networks comprising various distributed
generators, storage devices and controllable loads which can
be operated as interconnected or as islanded system. The
optimal generation is one of the important functions for the
Microgrid operation. This paper presents a generalized
formulation to determine the optimal operating strategy and
cost optimization scheme for a MicroGrid. The proposed cost
function consists of fuel cost, O&M cost, emission cost, start-
up cost and load shading cost. Three cases are considered in
this paper that differed in natural gas price. This problem is
solved by four optimization method including genetic
algorithm (GA), sequential quadratic programming (SQP),
generalized pattern search (GPS), and mesh adaptive direct
search (MADS). The results are obtained in three cases and
then compared to each other1.
Key Words — Microgrid, Optimization, Planning , Sequential
Quadratic Programming, Genetic Algorithm
I. INTRODUCTION
As energy demands around the world increase, the need for
a renewable energy sources that will not harm the environment
has been increased. Some projections indicate that the global
energy demand will almost triple by 2050 [1-2]. The need to
reduce pollutant gas emissions and the liberalization of the
electricity market has led to a large-scale development of
distributed renewable energy generators in electrical grids [3].
Nowadays, renewable energy generators, such as photovoltaic
or wind power generators, are used to reduce fuel
consumption and greenhouse gas emissions [4]. However, due
to its flexibility, DGs may not be managed and cooperate
together easily. Recently, Microgrid which considers
generation and associated loads as a subsystem of Smart Grid
[5], [6], is proposed for improving the quality of DGs [7].
microgrid has been extensively investigated as a promising
solution to energy challenges in 21st century. A microgrid
consists of interconnected loads and distributed energy
resources, and functions as an integrated energy system that
can operate in parallel with electricity grids or in an
1
Esmaeil Alikhani, Electrical Engineering Department, Power and Water
University of Tech, Tehran, Iran, (e-mail: eee_alikhani@yahoo.com)
 , +  ,
Mohammad Ahmadian, Electrical Engineering Department, Power and
Water University of Tech, Tehran, Iran, (e-mail: ahmadian@pwut.ac.ir)
intentional island mode [8]. The DGs used in this paper
consist of wind turbine, photovoltaic cell, diesel generator,
fuel cell and microturbine.
The management of the MG units requires an accurate
economic model to describe the operating cost taking into
account the output power production. Such a model is discrete
and nonlinear. In nature, hence optimizations tools are needed
to reduce the operating costs to a minimum level.
There are several potential economic benefits of MicroGrid
are summarized as [9]:
• Reduced transmission and distribution costs and
energy losses.
• Potentially total higher energy efficiency.
• The small scale of individual investments reduces
capital exposure and risk, by closely matching
capacity increases to growth in demand.
The low capital cost potentially enables low-cost entry into
a competitive market.
II. SYSTEM MODELING
For understanding the MG behavior and also for
management of MG, accurate modeling of microgrid
components is needed. The components modeled in this paper
are diesel generator, fuel cell, micro turbine, wind turbine,
photovoltaic array and battery storage. The fuel input is
needed only for the DG, FC, and MT as the fuel for the WT
and PV comes from nature. To serve the load demand,
electrical power can be produced either directly by PV, WT,
DG, MT, or FC. The diesel oil is a fuel input to the DG,
whereas natural gas is a fuel input to a fuel processor to
produce hydrogen for the FC. The gas is also the input to the
MT.
A. Diesel generator
Diesel engines are the most common type of MG
technology in use today. The traditional roles of diesel
generation have been the provision of stand-by power and
peak shaving. The fuel cost of a power system can be
expressed mainly as a function of its real power output and
diesel fuel consumption rate L/h
, can be expressed as
can be modeled by a quadratic polynomial [10]. The total
[11]:

, =   +

1


Ahmad Salemnia, Electrical Engineering Department, Power and Water
University of Tech, Tehran, Iran, (e-mail: salemnia@pwut.ac.ir)
Where,

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Canadian Journal on Electrical and Electronics Engineering Vol. 3, No. 3, March 2012

 the number of generator
 ,
 ,  coefficients of the particular generator  Net electrical power produced at interval !
,  = 1,2, … ,  output power of the diesel generator  in

B. Fuel Cell
Fuel cells work by combining hydrogen with oxygen to
produce electricity, heat, and water. DC current and heat are
produced by a chemical reaction rather than by a mechanical
process driven by combustion. Fuel cells can operate as long
as fuel is being supplied, as opposed to the fixed supply of
chemical energy in a battery.
The efficiency of the FC depends on the operating point,
and it refers to the ratio of the stack output power to the input
energy content in the natural gas. It is normally calculated as
% 6& < 6 < 6% ;
1 =
the ratio of the actual operating voltage of a single cell to the
 Natural gas price to supply the fuel cell ($/kW h)
 Cell efficiency at interval !
D. Wind Turbine
In the design of a wind turbine model, two important factors
are considered; the availability of the wind and the power
curve of the wind turbine itself. The available wind
generator output is a function of the wind velocity. In order
to model the performance of the wind turbine, the power
curve of the wind turbine must be obtained. Power output
from wind turbine generator can be calculated as follows
[13]:
0 6 < 6&
4
 −
5

3 % 6% < 6 < 6&9

reversible potential (1.482 V) [12]. The overall unit efficiency
2 0 6 > 6&9
is the efficiency of the entire system including auxiliary
devices. We assume the typical efficiency curves of the
Protone Exchange Membrane (PEM) fuel cell including the

 = 6 = ⁄6%= − 6& 
Where,
=
cell and the overall efficiencies [12]. The efficiency of any

= 6& ⁄6% − 6&
= = =

fuel cell is the ratio between the electrical power output and

% Rated power of wind turbine

the fuel input, both of which must be in the same units. The

 6% Rated speed of wind turbine

fuel cost for the fuel cell is calculated as follows [11]:

, =   2 6& Cut-in speed of wind turbine
6&9 Cut-out speed of wind turbine



 the natural gas price to supply the fuel cell ($/kW h)
Where,

 the net electrical power produced at interval !

Actual power available from wind turbine is given by:

 the cell efficiency at interval ! ? = 1 × @1 × × 1 6

@1 Total swept area

Where,
C. Micro Turbine
Efficiency of wind turbine generator and corresponding
Micro turbines use a simple design with few moving parts
1 Number of wind turbine generator at site
converters
to improve reliability and reduce maintenance costs .The
economic model is similar to the FC model. Unlike the FC, the
efficiency of the MT increases with the increase of the
supplied power. Due to lack of detailed information, the E. Photovoltaic
curves of the MT are rescaled to be suitable for a unit with less Photovoltaic generations are systems which convert the
than 4kW rating. These curves are used to derive the electrical sunlight directly to electricity. The characteristics of the PV in

(1000B ⁄' , 25 ℃ cell temperature), the effect of solar

efficiency as a function of the electrical power to be used in operating conditions that differ from the standard condition
the economic model of the MT. The total efficiency of a micro

" + #$,%"&
turbine can be written as [11]: irradiation and ambient temperature on PV characteristics are

 = 3
'( × *+,(
modeled. The influence of solar intensity is modeled by
considering the power output of the module to be proportional

generator, DE , can be calculated according to the following

to the irradiance [14-15]. The power output of the PV
" The net electrical output power (kW)
Where,

#$,%"& The thermal power recovered (kW)

DE = F × GH × @I × J# 7
equations [13]:
'( The mass flow rate of the fuel (kg/s)
*+,( The fuel lower heating rate (kJ/kg f)
Where,
F Instantaneous PV generator efficiency
@I Area of a single module used in a system

The MT fuel cost is as follows [11]:

./ =   4 J# Global irradiance incident on the titled plane

 GH Number of modules
Where,

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Canadian Journal on Electrical and Electronics Engineering Vol. 3, No. 3, March 2012
The instantaneous PV generator efficiency is represented by
the following equation:
F = % × D# × L1 − M# × N& − N% O 8
Where,
% PV generator reference efficiency
D# Efficiency of power tracking equipment
M# Temperature coefficient of efficiency
N& Temperature of PV cell
N% PV cell reference temperature
F. Battery Storage
Battery banks are electrochemical devices that store energy
from other AC or DC sources for later use. The power from
the battery is needed whenever the micro sources are
insufficient to supply the load, or when both the micro sources
and the main grid fail to meet the total load demand. On the
other hand, energy is stored whenever the supply from the
micro sources exceeds the load demand.
The available battery bank capacity at hour t can be described
by [16]:
III. MICROGRID MANAGEMENT SYSTEM
A. Objective Function
Objective function for the mentioned microgrid is based on
profit maximization over 24 hours for next day. The function
of Microgrid Management System (MMS) is somedeal similar
to a day-ahead local energy market, aimed to maximize its
profit regarding to following parameters (as the inputs of
objective function); start-up and operation cost of the units
belong to microgrid manager (owner), consumers demand,
energy price forecast in wholesale power market, weather
forecast data, historical weather data etc.
The major concern in the design of an electrical system that
utilizes MG sources is the accurate selection of output power
that economically satisfies the load demand, while taking into
emissions of nitrogen oxides`a, sulfur oxidesb` , and
account the environmental externality costs by minimizing the
carbon oxidesc` . The proposed cost function for MG
serving isolated load demand assumes the following form
[11]:
p o
CFP =  gCh,i × Fh,i gPh,i j + OMh,i gPh,i j + STCh,i j
i
h

p o t N
QRS = 1 − T × QRS − 1 +    αr gEFhr Ph,i j +  cQℎ,S 12
− UV9WX S − YV1F S + VDE SZ[ i
h
r
S=1

× \W##"%] 9

c Fuel costs of generating unit i at hour t

Where,

   Fuel consumption rate of generator unit i at hour t

On the other hand, when the load demand is greater than the

`v   Operation and maintenance cost of generating unit i

available energy generated, the battery bank is in discharging
state. Therefore, the available battery bank capacity at hour t

 Decision variables, representing the power output from

can be expressed as [16]: at hour t

QRS = 1 − T × QRS − 1
 =  ,  , … ,   Decision variable vector
generating unit i at hour t
+ YV1F S + VDE S − V9WX SZ
bNc Start-up cost in $/h
× \W##"%] 10 wx Externality costs of emission type k
V
x Emission factor of generating unit i and emission type k
cy$,# Costs of curtailment strategy in load at hour t ($)
QRS Available battery bank capacity (wh) at hour S
Where,

QRS − 1 Available battery bank capacity (wh) at hour

S−1  Number of generating units i
T period of time

\W##"%] battery efficiency (during discharging process, the v Emission types `_ Rz c` Rz b` 
battery discharging efficiency was set equal to 1 and during
charging, the efficiency is 0.65-0.85 depending on the The solution of the optimization procedure produces the

T Self-discharge rate of the battery bank  = | , } = ./~ , x = 

charging current) optimal decision variables:
{ ‚
 = 1,2, … ,  ;  =  + 1, … ,  ;  =  + 1, … , 
At any hour, the storage capacity is subject to the following
| Output power of fuel cell  [kW],  = 1,2, … , 
constraints: Where,

QRI < QRS < QRIW_
+ 1, … , 
Where QRIW_ and QRI are the maximum and minimum
allowable storage capacity, respectively.
11 ./~ Output power of microturbine  [kW],  = 
 Output power of diesel generator  [kW],  =  +
1, … , 

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Canadian Journal on Electrical and Electronics Engineering Vol. 3, No. 3, March 2012

I Minimum operating power of unit 

IW_ Maximum operating power of unit 
The generator start-up cost depends on the time the unit has
been off prior to the start-up. The start-up cost for unit i in any
given time interval can be represented by an exponential cost

−T‰ŠŠ,h
curve:
STCh = σh + δh …1 − exp U [Œ 13
τh
IV. IMPLEMENTATION OF THE ALGORITHM
When designing MGs, several goals could be set, including
σh Hot start-up cost
Where,
reduction in emissions and generation costs. To achieve this, it
δh Cold start-up cost is important to highlight all factors influencing the main goal.
τh Unit cooling time constant The following items summarize the key the characteristics of
T‰ŠŠ,h The time a unit has been off the implemented strategy [17]:
o Power output of WT is calculated with measured wind
speed data.
The operating and maintenance costs OM are assumed to be
o Power output of PV is calculated with measured
proportionally constant is Ž.| for unit i:
proportional with the produced energy, where the
temperature and solar radiation data.
 o We assume WT and PV deliver free cost power (in terms
`v =  Ž.| ×  14 of running as well the emission free), the output powers

The values of Ž.| for different generation units are:
are treated as negative loads.
o The net load is calculated if the sum of the outputs from
Ž. V = 0.01258 $⁄Bℎ PV and WT is smaller than the total load demand.
Ž. 
c = 0.0049 $⁄Bℎ
Ž. vN = 0.00587 $⁄Bℎ
o Serving the load by other sources (FC or MT or DG) is
chosen according to the cost function of each one.

Curtailment options of final retail customers are also modeled Figure 1 shows the implementation of algorithm charts. In
this paper, the GA2, SQP3, GPS4 and MADS5 methods are
/
as a convex quadratic cost function as follow [17]:

c’“ =  cy$,# = My$ y$,# + ”y$ y$,# 15

used to simulate the result. These methods also compared to
 each other.
#
c’“ Costs of curtailment strategy in loads ($)
Where,
y$,# Curtailed power at load at hour t (kW)
My$ , ”y$ Cost coefficients of curtailment strategy in loads
On the other hand, c’“ is a penalty for Micro-grid
Management System because the MMS cannot supply energy
for loads.
B. Constraints [11]
The proposed OF exhibits equal, unequal, linear, and
nonlinear constraints that can be summarized as follows:
Power Balance: To meet the active power balance and heat
energy balance, two equality constraints are imposed (in each
hour).
  = • − ?/ + GH  16
V. SOLUTION METHODS
A. Genetic Algorithm
Genetic Algorithms are general-purpose search techniques
based on principles inspired from the genetic and evolution
mechanisms observed in natural systems and populations of
living beings. A genetic search starts with a randomly
generated initial population within which each individual is
evaluated by means of fitness function. Individuals in this and
subsequent generations are duplicated or eliminated according
to their fitness values. Further generations are created by
applying GA operators. This eventually leads to generation of
high performing individuals.
B. Sequential Quadratic Programming
SQP is one of the optimization methods that solve
constrained nonlinear problems. This solver finds the
constrained minimum of a scalar function of several variables

starting at an initial estimate. SQP methods an approximate
• The total power demanded
Where, solution of a sequence of quadratic programming (QP) sub

?/ The output power of the wind turbine

problems in which a quadratic model of the objective function

GH The output power of the photovoltaic cell

is minimized subject to the linearized constraints. The SQP
methods are described in [19-21].

Generation capacity constraints: For stable operation, real

power output of each power generator is restricted by lower

I <  < IW_ ∀  = 1,2, … ,  17

and upper limits. 2
Genetic Algorithm
3
Sequential Quadratic Programming
Where, 4
Generalized Pattern Search
5
Mesh Adaptive Direct search
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C. Pattern Search V. TEST AND RESULT

Pattern Search (PS) is a family of numerical optimization The optimization model described in the previous section is
methods that do not require the gradient of the problem to be applied to a load demand varying between 4 kW and 14 kW.
optimized. Hence PS can be used on functions that are not Requested demand for next day is shown in Fig. 3.
continuous or differentiable. The Pattern Search (PS)
optimization routine is an evolutionary technique that is
suitable to solve a variety of optimization problems that lie
outside the scope of the standard optimization methods.
Generally, PS has the advantage of being very simple in
concept, and easy to implement and computationally efficient
algorithm. Unlike other heuristic algorithms, such as GA, PS
possesses a flexible and well-balanced operator to enhance
and adapt the global and fine tune local search. The direct
search methods for optimization including GPS and MADS
are presented in reference [22-24]. The authors gave a modern
prospective on the classical family of derivative-free Figure 2: Load demand in next day [11]
algorithms, focusing on the development of direct search
methods. The Direct Search method steps are [25]: In this study, the electricity sources include photovoltaic,
small wind turbines, micro turbines, fuel cells and diesel

Choose a— ∈ Ω , w— > 0
1. Initialization generator. The available power from the PV and the wind

For  = 0,1,2, …
generators were used first. Table 1 gives specifications of FC,

Let x be a positive spanning set (set of positive generators

MT and Diesel Generator. In this table, capacity and start-up
costs of units are presented.
when there are linear constraints)

I B IW_ B

Table 1: FC, MT and DS specification
¥ ¦
Try to compute a point a in the grid vx = šax + wx x › , › ∈
2. Search step

ž with
Fuel Cell 0 4 5 15

ℕ—
| | Micro

Ÿ  a < Ÿax 

0 4 10 20
Turbine

If Ÿ  a < Ÿax  then set ax¡ = a , declare the iteration

Diesel
0 6 12 18
Generator
and the search step successful, and skip the poll step.
If the output from PV and WT is smaller than the load demand

Optionally order the poll set x = ¢ax + wx £ , £ ∈ x ¤

3. Poll step the algorithm automatically find the best mixture of the DG,
FC and MT to minimize the cost and feed the load demand.
If a poll point ax + wx £ is found such that Ÿ  ax + wx £x  < The results are analyzed in three cases. Table 2 contains the
Ÿax  then stop polling, set ax¡ = ax + wx £x , and declare total generation cost of three cases in four methods. The best
mixture of DG, FC and MT in 24 work of system in case 1 at
the iteration (and the poll step) unsuccessful and set ax¡ = ax
the iteration and the poll step successful. Otherwise, declare
different methods is shown in Fig (3-6).

Table 2: Total optimal generation and total cost of MG

4. Step size update Natural gas Total Generation Cost($/Day)

parameter wx¡ = wx  or double it wx¡ = 2wx  after two

If the iteration was successful, then maintain the step size price($/kwh) SQP GPS MADS GA
Case 1 0.04 65.072 60.87 60.43 59.55
Case 2 0.1 70.47 64.73 64.33 64.24
consecutive poll successes along the same direction. Case 3 0.4 85.78 85.00 85.60 84.57

wx¡ = wx ⁄2.
If the iteration was unsuccessful, halve the step size parameter
6
Diesel Generator Fuel Cell Microturbine
The Pattern Search (PS), algorithm proceeds by computing
a sequence of points that may or may not approaches to the 4
optimal point. The algorithm starts by establishing a set of
Power (KW)

points called mesh, around the given point. This current point
could be the initial starting point supplied by the user or it 2
could be computed from the previous step of the algorithm.
The mesh is formed by adding the current point to a scalar
multiple of a set of vectors called a pattern. If a point in the 0
mesh is found to improve the objective function at the current 1 3 5 7 9 11 13 15 17 19 21 23
point, the new point becomes the current point at the next Time(Hour)
iteration. Figure 3: generation of DG/FC/MT in SQP
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Canadian Journal on Electrical and Electronics Engineering Vol. 3, No. 3, March 2012

Diesel Generator Fuel Cell Microturbine

6 Operation & Maintenance Cost
Cnl = 0.04 Cnl = 0.1 Cnl = 0.4
0.15
4
Power(KW)

0.10
2
0.05

0 0.00
1 3 5 7 9 11 13 15 17 19 21 23 1 3 5 7 9 11 13 15 17 19 21 23
Time (Hour)
Figure 4: generation of DG/FC/MT in GA Figure 8:: O&M Cost of microsources using GA

Diesel Generator Fuel Cell Fuel Cost of Microsources

6
Cnl = 0.04 Cnl = 0.1 Cnl = 0.4
5

4 4
3
Power(KW)

2 2
1
0 0
1 3 5 7 9 11 13 15 17 19 21 23 1 3 5 7 9 11 13 15 17 19 21 23
Time (Hour)
Figure 5: generation of DG/FC/MT in GPS Figure 9: Fuel Cost of microsources using GA

The total costs of generation in case 1 at different

differe methods are
6
Diesel Generator Fuel Cell Microturbine shown in figure 10 in order to understanding the benefits of
each algorithm. This figure shows that the total costs of GA is
less than the other algorithms. Also, the SQP algorithm has
4 higher cost than other algorithm.. But by considering that the
Power(KW)

fuel cost of SQP is lower than the others, if the natural gas
2 price increases then the growth of fuel cost in SQP is less than
the other algorithm.
0
1 3 5 7 9 11 13 15 17 19 21 23 SQP GPS MADS GA
Time (Hour) 70
Figure 6: generation of DG/FC/MT in MADS
60
To understanding the effect of natural gas price in costs of 50
generation, the various costs including emission costs, 40
operation and maintenance cost, start-up
up cost and fuel cost in
three cases at GA method illustrated in figure (7
(7-9). 30
20

Emission Cost 10
Cnl = 0.04 Cnl = 0.1 Cnl = 0.4 0
0.6
0.5 Fuel Cost Emission O&M Cost Start-up Total Cost
Cost Cost
0.4
0.3 Figure 10: Costs of Generation using different Algorithm
0.2
0.1 IX. CONCLUSION
0 This
is paper describes an optimal generation of a Microgrid
in island operation which is one of the main functions of
1 3 5 7 9 11 13 15 17 19 21 23
optimized operation. Four algorithms including GA, SQP,
Figure 7: Emission Cost using GA MADS and GPS are used in order to comparing the features of
these algorithms. The results
lts obtained showed that the total
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Canadian Journal on Electrical and Electronics Engineering Vol. 3, No. 3, March 2012
cost of GA is less than the other algorithms. Also, the SQP
algorithm has higher cost than other algorithm. These results
also show that this optimal schedule not only decreases the
cost of operation, but also helps to improve overall system
operation. This paper is very flexible and it can be applied to
any size of power system, and power system with other
renewable energy sources.
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BIOGRAPHIES
Esmaeil Alikhani was born in Semnan, Iran on 1987. He
received his B.Sc. degree in electrical engineering from
Iran University of Science and Technology, Tehran, Iran
in 2009, and M.Sc. degree from Power and Water
University of Technology, Tehran, Iran, in 2012. His
research interests are in the areas of energy management,
renewable energy, deregulated power system and
distributed generation.
Ahmad Salemnia was born in Abadan, Iran on 1959. He
received his B.Sc. and M.Sc. degree from Iran University
of Science and Technology Tehran, Iran respectively in
1985 and 1990 in electrical engineering and Ph.D. degree
from ENSEM- INPL, Nancy, France in 1996, in power
electronics. Since, 1990 he has been with the department
of electrical engineering of Power and Water University
of Technology (PWUT), Tehran, Iran. His research
interests include power electronic and its applications in power systems,
FACTS devices, active filters and power quality.
Mohammad Ahmadian was born in Tehran, Iran on 1956. He received the
B.Sc. degree in electrical engineering from Sharif University of Technology,
Tehran, Iran, in 1983 and M.Sc. degree and Ph.D. degree from University of
Manchester Institute of Science and Technology, Manchester, England, in
1986 and 1990, respectively. Dr. Ahmadian is now an Assistant Professor in
the Power Engineering Department in Electrical Faculty of Power and Water
University of Technology, Tehran, Iran. His research interests are in the areas
of Load and Energy Management, Renewable Energy, Power System
Operation & Planning of power system.