As a promising approach for sustainable development, distributed energy systems have receive increasing attention worldwide and have become a key topic explored by researchers in the areas of building energy systems and smart grid. In line with this research trend, this dissertation presents a techno-economic analysis and optimization of distributed energy systems including combined heat and power (CHP), photovoltaics (PV), battery energy storage (BES), and thermal energy storage (TES) for commercial buildings. First, the techno-economic performance of the CHP system is analyzed and evaluated for four building types including hospital, large office, large hotel, and secondary school, located in different U.S. regions. The energy consumption of each building is obtained by EnergyPlus simulation software. The simulation models of CHP system are established for each building type. From the simulation results, the payback period (PBP) of the CHP system in different locations is calculated. The parameters that have an influence on the PBP of the CHP system are analyzed. Second, PV system and integrated PV and BES (PV-BES) system are investigated for several commercial building types, respectively. The effects of the variation in key parameters, such as PV system capacity, capital cost of PV, sell back ratio, battery capacity, and capital cost of battery, on the performance of PV and/or PV-BES system are explored. Finally, subsystems in previous chapters (CHP, PV, and BES) along with TES system are integrated together based on a proposed control strategy to meet the electric and thermal energy demand of commercial buildings (i.e., hospital and large hotel). A multi-objective particle swarm optimization (PSO) is conducted to determine the optimal size of each subsystem with the objective to minimize the payback period and maximize the reduction of carbon dioxide emissions. The results reveal how the key factors affect the performance of distributed energy system and demonstrate the proposed optimization can be effectively utilized to obtain an optimized design of distributed energy systems that can get a tradeoff between the environmental and economic impacts for different buildings.

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Energy forms a vital input and critical infrastructure for the economic development of countries and for improving the quality of life of people. Energy is utilized in society through the operation of large socio-technical systems called energy systems. In a growing world, as the focus shifts to better access and use of modern energy sources, there is a rising demand for energy. However, certain externalities result in this demand not being met adequately, especially in developing countries. This constitutes the energy demand – supply matching problem. Load shedding is a response used by distribution utilities in developing countries, to deal with the energy demand – supply problem in the short term and to secure the grid. This response impacts the activities of consumers and entails economic losses. Given this scenario, demand – supply matching becomes a crucial decision making activity. Traditionally demand – supply matching has been carried out by increasing supply centrally in the long term or reducing demand centrally in the short term. Literature shows that these options have not been very effective in solving the demand-supply problem. Gaps in literature also show that the need of the hour is the design of alternate solutions which are tailored to a nation's specific energy service needs in a sustainable way. Microgrids using renewable and clean energy resources and demand side management can be suitable decentralized alternatives to augment the centralized grid based systems and enable demand – supply matching at a local community level. The central research question posed by this thesis is: “How can we reduce the demand – supply gap existing in a community, due to grid insufficiency, using locally available resources and the grid in an optimal way; and thereby facilitate microgrid implementation?” The overall aim of this dissertation is to solve the energy demand – supply matching problem at the community level. It is known that decisions for the creation of energy systems are influenced by several factors. This study focuses on those factors which policy-makers and stakeholders can influence. It proposes an integrated decision framework for the creation of community microgrids. The study looks at several different dimensions of the existing demand – supply problem in a holistic way. The research objectives of this study are: 1. To develop an integrated decision framework that solves the demand – supply matching problem at a community level. 2. To decompose the consumption patterns of the community into end-uses. solar thermal, solar lighting and solar pumps and a combination of these at different capacities. The options feasible for medium income consumers are solar thermal, solar pumps, municipal waste based systems and a combination of these. The options for high income consumers are municipal waste based CHP systems, solar thermal and solar pumps. Residential consumers living in multi-storied buildings also have the options of CHP, micro wind and solar. For cooking, LPG is the single most effective alternative. 3. To identify the ‗best fitting‘ distributed energy system (microgrid), based on the end-use consumption patterns of the community and locally available clean and renewable energy resources, for matching demand – supply at the community level. 4. To facilitate the implementation of microgrids by * Contextualizing the demand – supply matching problem to consider the local social and political environment or landscape, * Studying the economic impact of load shedding and incorporating it into the demand-supply matching problem, and * Presenting multiple decision scenarios, addressing the needs of different stakeholders, to enable dialogue and participative decision making. A multi-stage Integrated Decision Framework (IDF) is developed to solve the demand - supply matching problem in a sequential manner. The first stage in the IDF towards solving the problem is the identification and estimation of the energy needs / end-uses of consumers in a community. This process is called End-use Demand Decomposition (EUDD) and is accomplished by an empirical estimation of consumer electricity demand based on structural and socio-economic factors. An algorithm/ heuristic is also presented to decompose this demand into its constituent end-uses at the community level for the purpose of identifying suitable and optimal alternatives/ augments to grid based electricity. The second stage in the framework is Best Fit DES. This stage involves identifying the “best-fit‘ distributed energy system (microgrid) for the community that optimally matches the energy demand with available forms of supply and provides a schedule for the operation of these various supply options to maximize stakeholder utility. It provides the decision makers with a methodology for identifying the optimal distributed energy resource (DER) mix, capacity and annual operational schedule that “best fits” the given end-use demand profile of consumers in a community and under the constraints of that community such that it meets the needs of the stakeholders. The optimization technique developed is a Mixed Integer Linear Program and is a modification of the DER-CAM™ (Distributed Energy Resources Customer Adoption Model), which is developed by the Environmental Energy Technologies Division, Lawrence Berkeley National Laboratory using the GAMS platform. The third stage is the Community Microgrid Implementation (CMI) stage. The CMI stage of IDF includes three steps. The first one is to contextualize the energy demand and supply for a specific region and the communities within it. This is done by the Energy Landscape Analysis (ELA). The energy landscape analysis attempts to understand the current scenario and develop a baseline for the study. It identifies the potential solutions for the demand - supply problem from a stakeholder perspective. The next step provides a rationale for the creation of community level decentralized energy systems and microgrids from a sustainability perspective. This is done by presenting a theoretical model for outage costs (or load shedding), empirically substantiating it and providing a simulation model to demonstrate the viability for distributed energy systems. Outage cost or the cost of non supply is a variable that can be used to determine the need for alternate systems in the absence/ unavailability of the grid. The final step in the CMI stage is to provide a scenario analysis for the implementation of community microgrids. The scenario analysis step in the framework enlightens decision makers about the baselines and thresholds for the solutions obtained in the “best fit‘ analysis. The first two stages of IDF, EUDD and Best Fit DES, address the problem from a bottom-up perspective. The solution obtained from these stages constitutes the optimal solution from a technical perspective. The third stage CMI is a top-down approach to the problem, which assesses the social and policy parameters. This stage provides a set of satisficing solutions/ scenarios to enable a dialogue between stakeholders to facilitate implementation of microgrids. Thus, IDF follows a hybrid approach to problem solving. The proposed IDF is then used to demonstrate the choice of microgrids for residential communities. In particular, the framework is demonstrated for a typical residential community, Vijayanagar, situated in Bangalore and the findings presented. The End-use Demand Decomposition (EUDD) stage provides the decision makers with a methodology for estimating consumer demand given their socio-economic status, fuel choice and appliance profiles. This is done by the means of a statistical analysis. For this a primary survey of 375 residential households belonging to the LT2a category of BESCOM (Bangalore Electricity Supply Company) was conducted in the Bangalore metropolitan area. The results of the current study show that consumer demand is a function of the variables family income, refrigeration, entertainment, water heating, family size, space cooling, gas use, wood use, kerosene use and space heating. The final regression model (with these variables) can effectively predict up to 60% of the variation in the electricity consumption of a household ln(ElecConsumption) = 0.2880.396*ln(Income)+0.2 66*Refri geration+ 0.708*Entertainment+0.334*WaterHeating+0.047*FamSize+ 0243*SpaceCooling.+580*GasUse+0.421*WoodUse–0.159*KeroseneUse+ 0.568*SpaceHeating ln(ElecConsumption) = 0.406*ln(Income)0.168*Ref rigeration+0.139*Entertainment+ 0.213*WaterHeating+0.114*FamSize+0.121*SpacCooling+0.171*GasUse+ 0.115*WoodUse–0.094*KeroseneUse+0.075*SpaceHeating   The next step of EUDD is to break up the demand into its constituent end-uses. The third step involves aggregating the end-uses at the community level. These two steps are to be performed using a heuristic. The Best Fit DES stage of IDF is demonstrated with data from an urban community in Bangalore. This community is located in an area called Vijayanagar in Bangalore city. Vijayanagar is a mainly a residential area with some pockets of mixed use. Since grid availability is the constraining parameter that yields varying energy availability, this constraint is taken as the criteria for evaluation of the model. The Best Fit DES model is run for different values of the grid availability parameter to study the changes in outputs obtained in DER mix, schedules and overall cost of the system and the results are tabulated. Sensitivity analysis is also performed to study the effect of changing load, price options, fuel costs and technology parameters. The results obtained from the BEST Fit DES model for Vijayanagar illustrate that microgrids and DERs can be a suitable alternative for meeting the demand – supply gap locally. The cost of implementing DERs is the optimal solution. The savings obtained from this option however is less than 1% than the base case due to the subsidized price of grid based electricity. The corresponding costs for different hours of grid availability are higher than the base case, but this is offset by the increased efficiency of the overall system and improved reliability that is obtained in the community due to availability of power 24/7 regardless of the availability of grid based power. If the price of grid power is changed to reflect the true price of electricity, it is shown that DERs continue to be the optimal solution. Also the combination of DERs chosen change with the different levels of non-supply from the grid. For the study community, Vijayanagar, Bangalore, the DERs chosen on the basis of resource availability are mainly discrete DERs. The DERs chosen are the LPG based CHP systems which run as base and intermediate generating systems. The capacity of the discrete DERs selected, depend on the end-use load of the community. Biomass based CHP systems are not chosen by the model as this technology has not reached maturity in an urban setup. Wind and hydro based systems are not selected as these resources are not available in Vijayanagar. The CMI stage of IDF demonstrates the top-down approach to the demand-supply matching problem. For the Energy Landscape Analysis (ELA), Bangalore metropolis was chosen in the study for the purpose of demonstration of the IDF framework. Bangalore consumes 25% of the state electricity supply and its per capita consumption at 1560kWh is higher than the state average of 1230kWh and is 250% more than the Indian average of 612kWh. A stakeholder workshop was conducted to ascertain the business value for clean and renewable energy technologies. From the workshop it was established that significant peak power savings could be obtained with even low penetrations of distributed energy technologies in Bangalore. The feasible options chosen by stakeholders for low income consumers are The second step of CMI is finding an economic rationale for the implementation of community microgrids. It is hypothesized that the ‘The cost of non-supply follows an s-shaped curve similar to a growth curve.’ It is moderated by the consumer income, consumer utility, and time duration of the load shedding. A pre and post event primary survey was conducted to analyze the difference in the pattern of consumer behaviour before and after the implementation of a severe load shedding program by BESCOM during 2009-10. Data was collected from 113 households during February 2009 and July 2010. The analysis proves that there is indeed a significant difference in the number of uninterrupted power systems (inverters) possessed by households. This could be attributed mainly to the power situation in Karnataka during the same period. The data also confirms the nature of the cost of non-supply curve. The third step in CMI is scenario analysis. Four categories of scenarios are developed based on potential interventions. These are business-as-usual, demand side, supply side and demand-supply side. About 21 scenarios are identified and their results compared. Comparing the four categories of scenarios, it is shown that business-as-usual scenarios may result in exacerbation of the demand-supply gap. Demand side interventions result in savings in the total costs for the community, but cannot aid communities with load shedding. Supply side interventions increase the reliability of the energy system for a small additional cost and communities have the opportunity to even meet their energy needs independent of the grid. The combination of both demand and supply side interventions are the best solution alternative for communities, as they enable communities to meet their energy needs 24/7 in a reliable manner and also do it at a lower cost. With an interactive microgrid implementation, communities have the added opportunity to sell back power to the grid for a profit. The thesis concludes with a discussion of the potential use of IDF in policy making, the potential barriers to implementation and minimization strategies. It presents policy recommendations based on the framework developed and the results obtained.

This research focuses on developing strategies for the optimal control of large-scale Combined Cooling, Heating and Power (CCHP) systems to meet electricity, heating, and cooling demands, and evaluating the cost savings potential associated with it. Optimal control of CCHP systems involves the determination of the mode of operation and set points to satisfy the specific energy requirements for each time period. It is very complex to effectively design optimal control strategies because of the stochastic behavior of energy loads and fuel prices, varying component designs and operational limitations, startup and shutdown events and many more. Also, for large-scale systems, the problem involves a large number of decision variables, both discrete and continuous, and numerous constraints along with the nonlinear performance characteristic curves of equipment. In general, the CCHP energy dispatch problem is intrinsically difficult to solve because of the non-convex, non-differentiable, multimodal and discontinuous nature of the optimization problem along with strong coupling to multiple energy components. <div><br></div><div>This work presents a solution methodology for optimizing the operation of a campus CCHP system using a detailed network energy flow model solved by a hybrid approach combining mixed-integer linear programming (MILP) and nonlinear programming (NLP) optimization techniques. In the first step, MILP optimization is applied to a plant model that includes linear models for all components and a penalty for turning on or off the boilers and steam chillers. The MILP step determines which components need to be turned on and their respective load needed to meet the campus energy demand for the chosen time period (short, medium or long term) with one-hour resolution. Based on the solution from MILP solver as a starting point, the NLP optimization determines the actual hourly state of operation of selected components based on their nonlinear performance characteristics. The optimal energy dispatch algorithm provides operational signals associated with resource allocation ensuring that the systems meet campus electricity, heating, and cooling demands. The chief benefits of this formulation are its ability to determine the optimal mix of equipment with on/off capabilities and penalties for startup and shutdown, consideration of cost from all auxiliary equipment and its applicability to large-scale energy systems with multiple heating, cooling and power generation units resulting in improved performance. </div><div><br></div><div>The case-study considered in this research work is the Wade Power Plant and the Northwest Chiller Plant (NWCP) located at the main campus of Purdue University in West Lafayette, Indiana, USA. The electricity, steam, and chilled water are produced through a CCHP system to meet the campus electricity, heating and cooling demands. The hybrid approach is validated with the plant measurements and then used with the assumption of perfect load forecasts to evaluate the economic benefits of optimal control subjected to different operational conditions and fuel prices. Example cost optimizations were performed for a 24-hour period with known cooling, heating, and electricity demand of Purdue’s main campus, and based on actual real-time prices (RTP) for purchasing electricity from utility. Three optimization cases were considered for analysis: MILP [no on/off switch penalty (SP)]; MILP [including on/off switch penalty (SP)] and NLP optimization. Around 3.5% cost savings is achievable with both MILP optimization cases while almost 10.7% cost savings is achieved using the hybrid MILP-NLP approach compared to the current plant operation. For the selected components from MILP optimization, NLP balances the equipment performance to operate at the state point where its efficiency is maximum while still meeting the demand. Using this hybrid approach, a high-quality global solution is determined when the linear model is feasible while still taking into account the nonlinear nature of the problem. </div><div><br></div><div>Simulations were extended for different seasons to examine the sensitivity of the optimization results to differences in electric, heating and cooling demand. All the optimization results suggest there are opportunities for potential cost savings across all seasons compared to the current operation of the power plant. For a large CCHP plant, this could mean significant savings for a year. The impact of choosing different time range is studied for MILP optimization because any changes in MILP outputs impact the solutions of NLP optimization. Sensitivity analysis of the optimized results to the cost of purchased electricity and natural gas were performed to illustrate the operational switch between steam and electric driven components, generation and purchasing of electricity, and usage of coal and natural gas boilers that occurs for optimal operation. Finally, a modular, generalizable, easy-to-configure optimization framework for the cost-optimal control of large-scale combined cooling, heating and power systems is developed and evaluated.</div>

The global climate and energy crisis has amplified the need for renewable energy sources, withsolar photovoltaic (PV) systems expected to play a significant role in the future energy mix. In this context, distributed energy systems (DES) are identified as part of the solution to address climate and energy challenges.With the increasing demand for photovoltaic energy sources, there is a growing requirement forefficient Business Case Tools (BCT) to analyze investments in distributed solar PV installations.A two-part model, consisting of a solar model and spot price data, was developed based onparameters such as solar radiation, location, angle, orientation, system losses, installedcapacity, and historical spot price data. The model was integrated with Power BI for investment calculations and visualization of results. The developed model provides approximations for solar PV system electricity production, which were validated against selected installations in allelectricity areas of Sweden. The validation revealed an average relative absolute error of 14.72 percent for the model. The conclusion drawn is that BCT can be utilized to analyze and visualize solar PV investments at specific locations in Sweden. The results indicate that Power BI, as a BCT, has limitations indynamic data collection but performs well in executing calculation of investments and visualizingthe results. Well-developed BCT can facilitate decision-making through real-time calculations and contribute to smoother implementation of distributed systems by providing detailed insightsinto their financial characteristics. Further research is needed to develop a model specificallytailored for distributed installations with storage capabilities. / Världen befinner sig i en global klimat- och energikris vilket ökat behovet av och efterfrågan på förnybara energikällor. Solceller förväntas utgöra en betydande del av den framtida energimixen. I kombination med detta identifieras distribuerade energisystem (DES) som endel av lösningen på klimat- och energifrågan. I takt med den ökade efterfrågan på fotovoltaiska energikällor ställs större krav på effektiva Business Case Tools (BCT) för att analysera investeringar i distribuerade solcellsanläggningar. En modell bestående av två delar, en solmodell och spotprisdata,utvecklades utifrån parametrarna solstrålning, plats, vinkel, riktning, systemförluster, installerad effekt samt historiska spotprisdata. Modellen sammankopplas med Power BI föratt utföra investeringskalkyler och visualisera resultatet. Den utvecklade modellen gerapproximationer för solcellsanläggningars elproduktion, vilket validerades mot utvaldaanläggningar i Sveriges samtliga elområden. Enligt valideringen uppgår modellens genomsnittliga relativa absoluta fel till 14,72 procent. Slutsatsen dras att BCT kan användas för att analysera och visualisera solcellsinvesteringar på specifika platser i Sverige. Resultatet visar att Power BI som BCT har brister när detkommer till dynamisk datainsamling, men genomför och visualiserar investerings kalkyler med enkelhet. Välutvecklade BCT kan användas för att underlätta beslutsfattande genomrealtidsberäkningar och kan bidra till en smidigare implementering av distribuerade systemgenom att belysa deras finansiella karaktär på ett detaljerat sätt. Fortsatt forskning krävs föratt ta fram en modell anpassad för distribuerade anläggningar med lagringsmöjligheter.