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Joint Optimization of Energy Production & Storage
Andrei Sleptchenko∗ , Sgouris Sgouridis
Department of Industrial and System Engineering, College of Engineering,
Khalifa University, Abu Dhabi, UAE
*Corresponding author: andrei.sleptchenko@ku.ac.ae
Abstract—Efficient energy storage is very important nowadays
due to the extensive development of renewable energy options
with fluctuating outputs. Available energy storage technologies
have distinct charge and discharge efficiency depending on the
technology involved. In this paper, we present a generalized
optimization model for cost minimization in combined energy
production and storage facilities. The model can incorporate
any combination of dynamic supply, storage, and energy-
intensive product demand.
Keywords-renewable energy production; energy storage;
optimization modeling
I. I NTRODUCTION
Modern variable renewable energy technologies, solar
and wind, are highly scalable and could through expansion
provide the majority of global primary energy needs [1].
However, the variability of the energy supply is dependent
on environmental and weather conditions. Both solar and
wind activity exhibit seasonal, diurnal but also hourly and
sub-hourly variability. As a result, efficient storage of the
produced energy becomes essential for optimal utilization
of the production capacities. That is, the energy produced at
times that cannot be matched with demand in real-time can
be stored for usage when demand exceeds the RE supply.
Renewable energy resources are typically directly converted
to electricity, e.g., wind turbines (WT) and photovoltaic
(PV) panels. In addition, thermal energy can be provided by
concentrating solar power (CSP) or mechanical energy can
be harnessed from hydro power resources allowing potential
non-electric storage options.
The available electricity is used for industrial, commercial
or domestic needs supporting both productive activities and
living standards with uses highly dependent on the climate.
The UAE and its neighbors use it for the air-conditioning of
the built environment but also for seawater desalination for
industrial or domestic usage. In addition, since demand for
electricity, driven by cooling needs is strongly seasonal, it
allows the possibility of transforming excess energy supply
in the winter into a storage medium for use in the summer
like hydrogen [2]or ammonia [3]As a result, these options
allow thermal storage in the form of molten salts or ice (for
cooling) [4], water, or chemical bonds as additional options
for energy storage.
In this paper, we continue our research on efficient
configuration of production and storage systems for renew-
978-1-7281-0851-3/19/$31.00 ©2019 IEEE 
able energy [5], [6], [7]. In particular, we present here
an optimization model for minimization of installation and
operational costs in energy production and storage systems,
allowing for any possible combination of energy supply
and storage technologies, as well as varying demands for
energy intensive products (e.g., water, heat or cooling but
also materials like aluminum or steel). An important feature
of our model is the ability to capture the energy losses occur-
ring during conversion, transmission and storage processes.
Furthermore, for storage and dispatchable technologies we
account separately for the operating and capital costs. The
renewable energy resources are presented as a constant price
power-purchase agreement (PPA) with hourly variability.
This follows current market trends [8] simplifying at the
same time the representation of the RE aspect of the
problem. The linear optimization approach presented here
significantly improves and generalizes prior efforts [9].It also
presents a less computationally intensive method compared
to simulation-based evaluation e.g. by PLEXOS R
software.
Furthermore, the presented here approach uses simultaneous
optimization whereas the PLEXOS R
software breaks down
the initial problem into many sub-problems and solves them
in a cascaded manner, from long-term planning to short-term
planning.
The remainder of the paper formulates the mathemati-
cal model for our the problem, presents the optimization
methods, indicative numerical results and discusses possible
avenues for further research.
II. P ROBLEM S TATEMENT
We consider a system (cf. Figure 1) consisting of:
1) several energy production facilities, reflecting different
energy production technologies, with corresponding
production patterns for the analyzed period of time,
2) several storage facilities, where each facility has its
storage capacity, as well as capacities for storing and
extracting the corresponding product,
3) several demand points (with corresponding demand
patterns) for each required energy product.
Each facility (production, storage, storage pre- and post-
processing), has corresponding installation and operational
costs. The outputs of the production facilities can be con-
verted directly into the required products, with correspond-
ing conversion rates. At the same time, the excess production






  
 
 
  



 
  


     
  

  


  


Figure 1. Example of a system diagram for the production and storage facilities with corresponding flows of energy intensive products

can be converted into storable products and stored in corre- βs – self-discharge.

sponding storage facility. Conversion into storable products Variables (optimized):
and further conversion into demand also have corresponding P Rpcap – installed capacity of the production facilities
conversion rates. (renewable and dispatchable),
As mentioned in the introduction, the energy intensive P Dp2 ,t – time-dependent dispatchable production,
demand products could be electricity, water and cooling (cf. STs,tlvl
– time-dependent storage levels,
Figure 1), whereas the storage facilities can store thermal in
STp,s,t – time-dependent storage increase/charge from
agents, water, ice, hydrogen, etc. production point p,
out
III. O PTIMIZATION M ODEL STs,d,t – time-dependent storage decrease/discharge for
demand point d,
A. Notations
ST Csin – processing capacity for storage increase/charge
Indices: for storage s,
p1 – production facilities for renewable energy, ST Csout – processing capacity for storage
p2 – production facilities for dispatchable energy, decrease/discharge for storage s,
p – all production facilities p = p1 ∪ p2 , ST Cslvl – storage capacity of s,
s – storage facilities, U Sp,d,t – time-dependent direct usage from facility p by
d – demand points. demand point d.
Parameters (given): B. Linear Programm
P Rp1 ,t – time-dependent renewable production inten-
Objective function (cost minimization):
sity,
DMd.t – time-dependent demands,  
CN Vp,dprod
– conversion matrix for direct conversion into min P Rpcap · CP Rpinst + P Dp2 ,t · CP Dpoper
2
p1 p2
the demand products,  
CN Vp,sstin
– conversion matrix for storing-in into corre- + ST Csf · CSTsinst,f (1)
f ∈{in,out,lvl} s
sponding storage.   f
stout
CN Vs,d – conversion matrix for extracting from the + STs,t · CSTsoper,f
storage and conversion into the demand products, f ∈{in,out,lvl} s,t

CSTsinst,· – installation costs of the storage facilities, for

Production/demand/storage equilibrium equations:
{in,out,lvl} respectively,
CSTsoper,· – operation costs of the storage facilities, for 
P Rp1 ,t · RC(p1 ) = STpin
{in,out,lvl} respectively, s
1 ,s,t


CP Rpinst – installation costs of the production facilities + U Sp1 ,d,t + CTp1 ,t , ∀p1 , t (2)
(renewable and dispatchable), d
 
CP Rpoper – operation costs of the production facilities P Dp2 ,t = STpin
2 ,s,t
+ U Sp2 ,d,t , ∀p2 , t (3)
(renewable and dispatchable), s d


 Figure 2. Yearly electricity demand (GWh) in UAE Figure 4. Yearly cooling demand (GWh) in UAE

Figure 3. Yearly water demand (Mm3 ) in UAE Figure 5. Yearly solar (PV) activity in UAE

lvl lvl
STs,t = (1 − βs )STs,t−1 of the renewable sources (Figures 5, 6). These intensities
 
+ in
STp,s,t in
· CN Vp,s − out
STs,d,t , ∀s, t (4) also have clear seasonal, as well as weekly and daily
p d fluctuations. The decrease of the production rates of the
 
DMd,t = out
STs,d,t out
· CN Vs,d + us
U Sp,d,t · CN Vp,d , ∀d, t (5) photo-voltaic panels (PVs) in the summer months is caused
s p by higher temperatures that reduce the PVs’ efficiency.
Capacity constraints:: The optimization model essentially provides the lowest
cost configuration of production+storage options that exactly
 in stin meet the projected hourly demand for the entire year. That
0≤ STp,s,t · CN Vp,s ≤ ST Csin , ∀s, t
p
is, it is a mid/long-term strategic system planning tool. The
(6) optimization does not: (i) model extreme events or large
 out faults (e.g. power-plant shutdowns, prolonged droughts that
0≤ STs,d,t ≤ ST Csout , ∀s, t (7)
d
would affect the hydro components, etc), (ii) account for
lvl
0 ≤STs,t ≤ ST Cslvl , ∀s, t (8) the consumption grid requirements and expansions, (iii)
0 ≤P Dp2 ,t ≤ P DCp2 , ∀d, t (9)
guarantee system stability at below hour level – e.g. if
  instantaneous demand (for a few minutes) is higher than
CTp1 ,t ≤ α P Rp1 ,t · RC(p1 ) (10) the hourly peak, the model will not account for it.
p1 p1
The obtained optimization results that the battery is in-
C. Optimization Methods tensively used through the hole year (Figure 7), basically
The constructed optimization model belongs to the class compensating the daily consumption peaks.
of the Linear programming models. Due to the linearity of The hydrogen and thermal storage are used as longer term
the model, it can be solved exactly even for a large number storage (figures 8 and 9) with clear seasonal patterns.
of variables. The water storage levels (Figure 10) also demonstrate
In our numerical experiments, we used GUROBI 8.1 clear seasonal behaviour, as all the stored water is beign
solver. consumed during the summer months.
The ICE storage (Figure 11) is mainly used compensate
IV. N UMERICAL R ESULTS
The numerical experiments are built on the real-life de-
mand data for electricity, water and cooling in United Arab
Emirates (Figures 2, 3, 4).
These demands have clear seasonal pattern with higher
demands during hot summer months. Furthermore, there are
clear daily and weekly fluctuations due to different industrial
activities.
In addition to the demand data, we have real-life solar
(PV) and wind intensity data, to estimate the production rates Figure 6. Yearly wind activity in UAE


 Figure 7. Optimized battery levels (GWh) (for the year)
Figure 8. Optimized hydrogen storage level (GWh) (for the year)
daily fluctuations. However, the main usage of the ICE
storage is during the summer months. In other words, the
usage of the ICE storage demonstrates both seasonal and
daily patterns.
The nonrenewable energy sources (mainly gas) are used
only during the summer month, when demands are high that
production rates of the PV panels is low.
In addition to the storage levels, the models is capable to
optimize many other other parameters, such as production
and conversion capacities of all system components, as
well as curtailment of excessively produced energy (mainly
during the winter months).
V. C ONCLUSIONS
The presented model shows good capability of simulta-
neous optimization of production and storage capacities for
Figure 9. Optimized thermal storage level (GWh) (for the year)
Figure 10. Optimized water storage level (Mm3 ) (for the year)

Figure 11. Optimized ICE storage level (GWh) (for the year)
Figure 12. Optimized utilization of the non-renewable energy sources
mid- and long-term planning horizons,
As was indicate above, the presented optimization does
not model extreme events, as well as does not model the
system behaviour on the intervals shorten than an hour.
In our further research, we are planning to investigate how
to take into account uncertainly in the demands by applying
robust optimization approaches and stochastic programming.
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 Renewable and Sustainable Energy Reviews, vol. 55, pp. 1166–
1180, 2016.
[2] M. A. Pellow, C. J. Emmott, C. J. Barnhart, and S. M. Benson,
“Hydrogen or batteries for grid storage? A net energy analysis,”
Energy and Environmental Science, 2015.
[3] O. Osman and S. Sgouridis, “Optimizing the production of
ammonia as an energy carrier in the UAE,” in 5th International
Conference on Renewable Energy: Generation and Applica-
tion, ICREGA 2018, 2018.
[4] Y. Han, B. Shen, H. Hu, and F. Fan, “Optimizing the perfor-
mance of ice-storage systems in electricity load management
through a credit mechanism: An analytical work for Jiangsu,
China,” in Energy Procedia, 2014.
[5] S. Sgouridis, S. Griffiths, S. Kennedy, A. Khalid, and N. Zurita,
“A sustainable energy transition strategy for the United Arab

Emirates: Evaluation of options using an Integrated Energy
Model,” Energy Strategy Reviews, 2013.
[6] S. Sgouridis and D. Csala, “A framework for defining sus-
tainable energy transitions: Principles, dynamics, and implica-
tions,” Sustainability (Switzerland), 2014.
[7] Sgouris Sgouridis, Andrei Sleptchenko, Abdulrahman Al Za-
abi, Denes Csala, Pavlos Trichakis, and Steve Griffiths, “Elec-
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Energy Deployment: A Comparison of High-resolution Op-
timization Options for the UAE.” 2018.
[8] H. Apostoleris, S. Sgouridis, M. Stefancich, and M. Chiesa,
“Evaluating the factors that led to low-priced solar electricity
projects in the Middle East,” Nature Energy, vol. 1, 2018.
[9] W. P. Schill, “Residual load, renewable surplus generation and
storage requirements in Germany,” Energy Policy, 2014.