Week 2 – Optimization
Problem Formulation
Energy Systems Optimization
Why Problem Formulation Matters
• Choosing the solver is NOT the most important step
• Optimization problems are engineering models
• Poor formulation cannot be fixed by a better solver
Core Elements of an Optimization Problem
• Decision Variables – what we can control
• Objective Function – what we want to optimize
• Constraints – what must always be satisfied
• Parameters – known system data
Decision Variables in Energy Systems
• Generator power output
• Battery charging / discharging power
• Grid power exchange
• Energy storage state of charge (SOC)
• …
Objective Functions
• Minimize operating cost
• Minimize emissions
• Maximize renewable energy usage
• …
May need to handle trade-offs between conflicting objectives
Constraints in Energy Systems
• Power balance constraints
• Capacity and operational limits
• Energy storage limits
• Regulatory or market constraints
• ….
Constraints: Feasibility
• Feasibility in optimization refers to whether a
solution satisfies all constraints of the problem.
• A feasible solution may not be optimal, but an
optimal solution must always be feasible.
• The feasible region is the set of all decision
variable values that satisfy all constraints of an
optimization problem.
Constraints: Feasible Set
• -2x+3y ≤ 6
• x+y ≤ 2
• x ≥ -3
• y ≥ -1
Constraints: Feasible Set
• -2x+3y ≤ 6
• x+y ≤ 2
• x ≥ -3
• y ≥ -1
Optimization vs Simulation
Simulation answers: What happens?
Optimization answers: What should I do?
Core Case Study: Grid-Connected Microgrid
• Electrical load
• PV generation
• Battery energy storage system
• Connection to the main grid
Microgrid Decision Variables
• Grid power exchange Pgrid(t)
• PV generation Ppv(t)
• Battery power Pbat(t)
• Battery state of charge SOC(t)
Objective Function for the Microgrid
• Minimize total electricity cost
• Time-varying electricity prices
• Buying and selling power from the grid
Key Constraints for the Microgrid
• Power balance at every time step
• PV availability limits
• Battery power limits
• Battery SOC dynamics and limits
Modeling Assumptions (for now)
• Linear cost functions
• Ideal battery efficiency
• No on/off decisions
• Continuous decision variables
Time Horizon
Decision Variables
Objective Function
Constraints
Constraints
Assuming ideal efficiency for now.
Example
Problem Classification
Linear objective + linear constraints + continuous variables
This is a Linear Programming (LP) problem
Key Takeaways
Optimization is primarily a modeling task.
Physical interpretation of constraints is essential.
Models should be built incrementally.