Relaxation‐based bi‐lever reformulation and decomposition algorithm‐based collaborative optimization of multi‐microgrid for cloud energy storage

Abstract Energy storage devices become an indispensable part of modern power systems with high renewable energy penetration level. To reduce the operating costs, it is a promising way to allow the sharing and leasing of energy storage devices. In this paper, a bi‐lever optimized dispatch scheme is proposed to improve the usage efficiency of cloud energy storage in multi microgrids (MMG) system. Minimizing the operating costs of shared cloud energy storage is the main task of the upper lever while maximizing the profits of MMG is the goal of the lower lever. Moreover, the transaction cost and benefit between the two levers play an important role in system level optimization. This leads to a hybrid optimization problem with both discrete decision variables and continuous decision variables. To solve the problem, a relaxation‐based bi‐lever reformulation and decomposition algorithm is developed. The effectiveness of the proposed bi‐lever dispatch optimization model is verified by carrying out numerical experiments in three scenarios. It is shown that the proposed cloud energy storage service can effectively reduce the operating cost of MMG.