Optimization of Smart Grid Operation Considering Diverse Electricity Consumption Patterns

ABSTRACT This study examines an optimal operation model for a smart grid composed of multiple microgrids to promote renewable energy use in Japan. In Japan, about 70% of electricity is still supplied by fossil fuel power, while renewables account for only 18% despite a 36%–38% target for 2030. Using demand and photovoltaic data from Setagaya Ward, we construct a system model with factory/office and residential microgrids and formulate a mathematical optimization model that considers power interchange, batteries, and heat storage. Numerical experiments based on several case studies show the effectiveness of smart grid operation designed according to the proposed model in promoting renewable energy utilization and reducing total generation cost. In particular, the results show that increasing photovoltaic capacity, increasing the number of microgrids, and considering heat demand are all effective measures. However, these benefits depend on the season. Future work should extend the system model to account for seasonal variability and associated investment costs.