Optimizing smart grid performance: A stochastic approach to renewable energy integration

Smart grids offer numerous possibilities for developing and executing sustainable and efficient electricity supply chains that exhibit increased resilience to disturbances. The exploration of the Electric Supply Chain Network (ESCND) design problem using smart grids has been limited. This article aims to tackle this challenge through the application of a robust multi-objective optimization approach, encompassing three economic goals (maximizing profit), environmental goals (minimizing greenhouse gas emissions), and resilience goals (maximizing network resilience). Additionally, the optimization process takes into account the dual objectives of maximizing efficiency and minimizing energy loss by incorporating relevant cost considerations. The proposed methodology incorporates distinctive features of smart grids, such as demandside management programs, microgrid structures, bidirectional distribution lines, and consumer-supplier nodes. It addresses various interconnected decisions, including location placement, capacity expansion, load allocation, and pricing. To solve the formulated model, a potent combination of multi-objective optimization methods based on cutting-plane algorithms and AUGMECON2 is introduced. Subsequently, the proposed model and solution approach are applied to a practical case study, and the obtained results are comprehensively examined. The findings suggest that, despite potential contradictions between economic and environmental objectives, the implementation of smart grids can concurrently improve environmental performance and network flexibility.