Multi-objective dynamic programming for constrained optimization of non-separable objective functions with application in energy storage

Reza Kamyar, Matthew Peet

Research output: Chapter in Book/Report/Conference proceedingConference contribution

2 Citations (Scopus)

Abstract

We propose a multi-objective optimization algorithm for optimal energy storage by residential customers using Li-Ion batteries. Our goal is to quantify the benefits of optimal energy storage to solar customers whose electricity bills consist of both Time of Use charges ($/kWh, with different rates for on-peak and off-peak hours) and demand charges ($/kW, proportional to the peak rate of consumption in a month). We first define our energy storage optimization problem as minimization of the monthly electricity bill subject to certain constraints on the energy level and the charging/discharging rate of the battery, while accounting for battery's degradation due to cycling and depth of discharge. We solve this problem by constructing a sequence of parameterized multi-objective dynamic programs whose sets of non-dominated solutions are guaranteed to contain an optimal solution to our energy storage problem. Unlike the standard formulation of our energy storage problem, each of the parameterized optimization problems satisfy the principle of optimality - hence can be solved using standard dynamic programming algorithms. Our numerical case studies on a wide range of load profiles and various pricing plans show that optimal energy storage using Tesla's Powerwall battery can reduce the monthly electricity bill by up to 52% relative to the case where no energy storage is used.

Original languageEnglish (US)
Title of host publication2016 IEEE 55th Conference on Decision and Control, CDC 2016
PublisherInstitute of Electrical and Electronics Engineers Inc.
Pages5348-5353
Number of pages6
ISBN (Electronic)9781509018376
DOIs
StatePublished - Dec 27 2016
Event55th IEEE Conference on Decision and Control, CDC 2016 - Las Vegas, United States
Duration: Dec 12 2016Dec 14 2016

Other

Other55th IEEE Conference on Decision and Control, CDC 2016
CountryUnited States
CityLas Vegas
Period12/12/1612/14/16

Fingerprint

Energy Storage
Multiobjective Programming
Nonseparable
Constrained optimization
Constrained Optimization
Dynamic programming
Energy storage
Dynamic Programming
Objective function
Battery
Electricity
Customers
Charge
Optimization Problem
Nondominated Solutions
Cycling
Multiobjective optimization
Energy Levels
Multi-objective Optimization
Electron energy levels

ASJC Scopus subject areas

  • Artificial Intelligence
  • Decision Sciences (miscellaneous)
  • Control and Optimization

Cite this

Kamyar, R., & Peet, M. (2016). Multi-objective dynamic programming for constrained optimization of non-separable objective functions with application in energy storage. In 2016 IEEE 55th Conference on Decision and Control, CDC 2016 (pp. 5348-5353). [7799089] Institute of Electrical and Electronics Engineers Inc.. https://doi.org/10.1109/CDC.2016.7799089

Multi-objective dynamic programming for constrained optimization of non-separable objective functions with application in energy storage. / Kamyar, Reza; Peet, Matthew.

2016 IEEE 55th Conference on Decision and Control, CDC 2016. Institute of Electrical and Electronics Engineers Inc., 2016. p. 5348-5353 7799089.

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Kamyar, R & Peet, M 2016, Multi-objective dynamic programming for constrained optimization of non-separable objective functions with application in energy storage. in 2016 IEEE 55th Conference on Decision and Control, CDC 2016., 7799089, Institute of Electrical and Electronics Engineers Inc., pp. 5348-5353, 55th IEEE Conference on Decision and Control, CDC 2016, Las Vegas, United States, 12/12/16. https://doi.org/10.1109/CDC.2016.7799089
Kamyar R, Peet M. Multi-objective dynamic programming for constrained optimization of non-separable objective functions with application in energy storage. In 2016 IEEE 55th Conference on Decision and Control, CDC 2016. Institute of Electrical and Electronics Engineers Inc. 2016. p. 5348-5353. 7799089 https://doi.org/10.1109/CDC.2016.7799089
Kamyar, Reza ; Peet, Matthew. / Multi-objective dynamic programming for constrained optimization of non-separable objective functions with application in energy storage. 2016 IEEE 55th Conference on Decision and Control, CDC 2016. Institute of Electrical and Electronics Engineers Inc., 2016. pp. 5348-5353
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