Balancing Accuracy and Complexity in Optimisation Models of Distributed Energy Systems and Microgrids with Optimal Power Flow: A Review

Abstract: Optimisation and simulation models for the design and operation of grid-connected distributed energy systems (DES) often exclude the inherent nonlinearities related to power flow and generation and storage units, to maintain an accuracy-complexity balance. Such models may provide sub-optimal or even infeasible designs and dispatch schedules. In DES, optimal power flow (OPF) is often misrepresented and treated as a standalone problem. OPF consists of highly nonlinear and nonconvex constraints related to the underlying alternating current (AC) distribution network. This aspect of the optimisation problem has often been overlooked by researchers in the process systems and optimisation area. In this review we address the disparity between OPF and DES models, highlighting the importance of including elements of OPF in DES design and operational models to ensure that the design and operation of microgrids meet the requirements of the electrical grid. By analysing foundational models for both DES and OPF, we identify detailed technical power flow constraints that have been typically represented using oversimplified linear approximations in DES models. We also identify a subset of models, labelled DES-OPF, which include these detailed constraints and use innovative optimisation approaches to solve them. Results of these studies suggest that achieving feasible solutions with high-fidelity models is more important than achieving globally optimal solutions using less-detailed DES models. Recommendations for future work include the need for more comparisons between high-fidelity models and models with linear approximations, and the use of simulation tools to validate DES-OPF models. The review is aimed at a multidisciplinary audience of researchers and stakeholders who are interested in modelling DES to support the development of more robust and accurate optimisation models for the future.