Balancing Economy and Reliability of Integrated Community Energy System Planning Based on Reliability Marginal Cost

As the growing concern of energy reliability intensifies the cost pressure for the integrated community energy system (ICES), it is imperative to balance the economy and reliability for the ICES planning. This paper presents a two-stage planning model to minimize total cost and satisfy the reliability criteria. Formulated by Lagrange multipliers, the reliability marginal cost (RMC) is proposed to estimate the benefit/cost ratio of reliability improvement. Moreover, the variation of RMC can be determined by the valid region of Lagrange multipliers. This allows us to obtain the least- cost reliability constraint from a global perspective, rather than the local information from sensitivity analysis of most current studies. The iterative process between the economic optimization (first-stage model) and the reliability verification (second-stage model) will continue until an economical and reliable planning scheme is obtained. Numerical simulations demonstrate the effectiveness of the proposed planning approach.