Co-optimization of distributed energy resources under time-of-use pricing frame

Abstract Distributed energy systems (DES) have been considered as a promising solution due to the benefits on efficiency and environment sides. However, despite the rapid development of distributed energy resources and technologies, the share of the distributed energy generation is still small in comparison to that of traditional generation. Time-of-use (TOU) pricing can be an important incentive strategy to encourage the penetration of distributed energy systems. In this paper, a multi-objective optimization considering the time-of-use pricing impacts is proposed to determine the optimal configuration and capacity of distributed energy system involving different technologies including solar photovoltaic (PV), solar thermal collector (STC), combined heating and power system (CHP), and integrated energy storage (ES). The distributed energy system is designed to satisfy the electric and thermal load of commercial buildings (large hotel and medium office) partially or entirely. The proposed multi-objective optimization is utilized to configurate the optimal combination of distributed energy technologies as well as the system capacity to reduce both the cost and environment impact of the system in different locations. Results show that the proposed optimization method can achieve a trade-off between system cost and environment impact based on the existing time-of-use pricing structure.