Impact of rooftop photovoltaics and centralized energy storage on the design and operation of a residential CHP system

In this paper, we study the impact of centralized energy storage and rooftop photovoltaics on the design and operation of a natural-gas powered Combined Heat and Power (CHP) plant as an integrated utility supplier for a residential neighborhood operating in island mode. Utilizing a novel simultaneous optimization approach for the plant design and operating strategy, the CHP plant is optimized to meet a time-dependent energy demand profile characteristic of residential energy use. This multi-scale optimization problem is solved using a tailored bilevel decomposition method. The results reveal the most economic energy storage method, while highlighting the need to decrease the cost of rooftop photovoltaic panels.