Joint production and energy supply planning of an industrial microgrid

Overview & Synopsis

We consider the problem of jointly optimizing the daily production planning and energy supply management of an industrial complex, with manufacturing processes, renewable energies and energy storage system. It is naturally formulated as a mixed-integer multistage stochastic problem. This problem is challenging for three main reasons: there is a large number of time steps (typically 24), renewable energies are uncertain and uncontrollable, and we need binary variables modeling hard constraints. We discuss various solution strategies, in particular Model Predictive Control, Dynamic Programming, and heuristics based on the Stochastic Dual Dynamic Programming algorithm. We compare these strategies on two variants of the problem: with or without day-ahead energy purchases.