Multi-objective Energy Management in Microgrids Considering Battery Degradation Cost and Emissions Minimization

This paper proposes a multi-objective Economic-Environmental Energy Management System (EMS) for a Microgrid (MG) aiming to minimize total operational costs and harmful greenhouse gas emissions. The proposed formulation incorporates realistic economic factors, including fuel cost, operation and maintenance cost and depreciation cost of different system assets. The proposed MG contains a variety of different power sources such as Conventional Diesel Generators (CDGs), Gas Turbine (GT), Wind Turbine (WT), Photovoltaic (PV), Fuel Cell (FC) and a power transaction with the main grid. The existence of these sources, which are different in operational characteristics, makes the need for an Energy Management System (EMS) crucial. To solve the resulting complex optimization problem, a customized Pelican Optimization Algorithm (POA) is applied due to its balanced exploration-exploitation mechanism and low parameter dependency. The method is validated across five progressive scenarios: from a basic islanded microgrid without renewables, to grid-connected operation with active trading, and finally to battery storage integration with degradation cost modeling. The first case includes an islanded MG without renewables. PVs and WTs are penetrated in the second case, which reduces the total cost by about 42% in comparison with the base case. The total cost is also reduced to a lower level through transferring the MG to a grid-connected mode with a passive grid in the third case. In the fourth case, the main grid transferred to an active mode. Finally, the fifth case includes utilizing Battery Energy Storage (BES) for a higher reliability of the system through being a backup source when needed, this helps also in additional reduction of system operational cost compared to previously stated cases. Results show a significant cost reduction from 1978.9 $ in the base case to 888.89 $ in the most advanced configuration, confirming the approach's effectiveness in both economic and environmental terms.